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ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION — AUGUST 19, 2024 7 Public Works Director/City Engineer Swearingen confirmed. After the Arden View neighborhood, this Glenarden neighborhood and the Venus neighborhood are the last real clay pipe neighborhoods that need to be sealed. There is a schedule for 2027, trying to line that schedule up for if Met Council does the program again. Councilmember Holden thought a lot of the pipes in the Venus neighborhood were replaced when the total reconstruct was completed. Public Works Director/City Engineer Swearingen said the water main was included in that reconstruction, the sanitary sewer was not. Councilmember Holden would not be in favor of this project unless Met Council money is received to help with the costs. Mayor Grant summarized the sanitary sewer fund, with the projects in 2025 and 2027, the 2029 fund balance would be $643,413. He asked if that was correct. Finance Director Yang confirmed that amount includes the sewer lining and the 9% rate increase. Mayor Grant thought it was supposed to be a 3% increase. Finance Director Yang stated it was 3% on the preliminary version. She adjusted to 9% based on the Met Council Wastewater charge increase. Mayor Grant asked if the increase was for the processing of the City's wastewater or if it is a fine for exceeding UI. Finance Director Yang answered for processing. Public Works Director/City Engineer Swearingen said they are increasing their rates which has to be passed on. Councilmember Monson asked if direction was needed regarding the increases. Finance Director Yang confirmed. She stated if Council is ok with moving forward with the 9%. Met Council is also anticipating future years estimated at 4-6% increases. Right now, future years are set at 3% and the fund balance reflects the 3% increase, not the 4-6%. Councilmember Holden thinks it's difficult to look at each of these separate when in the past it was looked at as what the increase would be on the entire utility bill. It is hard for her to justify increasing the sewer by 9% because that's what the Met Council wants, but we have a healthy surplus balance. Finance Director Yang explained that if the 9% wastewater charge is included in 2025 but we don't increase the revenue rate, there would be a fund balance deficit. Councilmember Holden asked if that was in the sewer bill.