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ARDEN HILLS CITY COUNCIL WORK SESSION – NOVEMBER 13, 2023 3 <br /> <br />City Administrator Perrault replied that in the past number of years they’ve done better on the <br />expenditure side mostly due to staff vacancies. He thought they had always done better on the <br />revenue side but they are around $120,000 short of budgeted permit revenue. In past years they <br />have been more like $200,000+ to the good of that. <br /> <br />Mayor Grant asked where TCAAP revenue fits into this. <br /> <br />City Administrator Perrault said there was no TCAAP revenue built into the projections. <br /> <br />Mayor Grant stated the County is actively selling Outlot A, he thought they would close or at <br />least have a developer agreement at the end of this year or beginning of next. <br /> <br />City Administrator Perrault said it is expected the County will sell the property, a purchase <br />agreement should come within the next couple of months, but the actual due diligence time for <br />that construction project is 12-18 months. We would expect revenue to start coming in from that <br />property in the next 3-5 years. <br /> <br />Mayor Grant stated the City should expect to be reimbursed for about $100,000 in Planning <br />costs. <br /> <br />City Administrator Perrault explained they have a Planning Area Charge but he didn’t know <br />how that would equate to Outlot A. That wasn’t built into the current budget. He felt they would <br />get those funds at the time a building permit was pulled and it wouldn’t be tied to the transaction. <br /> <br />Councilmember Monson said in JDA discussions they anticipate a build out in 2025 or 2026. <br /> <br />City Administrator Perrault stated they aren’t privy to the purchase agreement and/or proceeds <br />from it, but the current fee schedule has a Planning Area Charge built in which was intended to <br />take $1,000,000 from across the TCAAP project. <br /> <br />Councilmember Fabel said when he looks at the City Wide Budget Summary there is about a <br />$4.3 million dollar deficit. Are they actually budgeting that? <br /> <br />City Administrator Perrault responded that it is accurate, and the main driver of that is the <br />Capital outlay projects, for example the $3 million PIR project coming up. He further explained <br />the CIP. <br /> <br />Councilmember Fabel asked why there was a $2.5 million spread between the charges for <br />services in the Enterprise Fund versus the expenditures. <br /> <br />City Administrator Perrault said it was mostly due to the capital outlay. There are projects and <br />utilities coming up like the PIR sewer lining project that make up the balance but they set the rates <br />so they cover themselves over the course of time. For example, the Water Funds rates should be <br />healthy enough to cover the Water Fund for the 5-10 year period they are looking at. <br /> <br />Councilmember Monson thought it was interesting that they are only looking at one year. She <br />asked if the Council in the past ever considered looking 2 or 3 years out for budgeting purposes to <br />avoid any large jumps or help fund certain projects or services without taking a big hit in a year?