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ARDEN HILLS CITY COI.INCIL WORK SESSION _ NOVEMBER 12,2024 <br />maintenance costs and an additional variable rate. Staff reviewed the contract renewal and <br />believed the cost structure looks reasonable and it has been incorporated into the latest <br />projections. <br />Councilmember Holden asked if most of that was water. <br />Finance Director Yang confirmed. <br />Councilmember Holden asked if we need to discuss the water rate. <br />Finance Director Yang said we set it at 0% before we knew what the new contracted rate from <br />Roseville was going to be. The fund balance is fairly healthy, even including the increase. <br />Councilmember Holden asked how many years it will last. <br />Finance Director Yang pointed to the ending fund balances in the packet. 2025 ends with a $2.7 <br />million fund balance and in 2026, it will be around $1 million. There is a fund balance of $l <br />million through 2031.[n2032, there is a dip due to some additional street projects. <br />Councilmember Holden thought it would be a good idea to share something in the newsletter <br />explaining the rates are based on the fact that we have miles and miles of water and sewer lines <br />that need to be maintained that spread over a large area. Surrounding communities are on a grid <br />system. She doesn't know if residents realize how far we plan ahead. In two years, it will be <br />Arden Hills 75s anniversary. Will the City do anything to commemorate that? Maybe that is a <br />discussion for another day. She just wanted to put it out there. <br />Finance Director Yang shared the tax impact of the 155% tax levy increase. She shared the tax <br />lery history showing the 9-year average, excluding 2024 was 4.2%.If we included2}Z4, when <br />the ler,y increase was 12.55oh, the 10-year average tax rate has been around25Yo. <br />Finance Director Yang shared the 2024 tax rates for cities in Ramsey County. The 2025 <br />preliminary levies have not been published yet. She will share them as soon as they are available. <br />In2024 Arden Hills was the lowest. <br />Councilmember Holden said that doesn't mean anything to her because some of the cities have <br />community centers, some have major streetlights and their own police departments. She thinks <br />this slide doesn't show why surrounding communities are higher. It can't capture why they are <br />higher. It's more important to know Arden Hills' history. <br />Discussion ensued regarding how difficult it is to compare cities against each other. <br />Finance Director Yang shared the proposed levy for 2025 is 15.5%. This includes $5.5 million <br />to the General Fund and $610,000 to the CIP Funds. <br />Councilmember Holden stated this still doesn't include the union negotiations with Public <br />Works or any increases that may occur with the fire department. There are expenditure items <br />missing.