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ARDEN HILLS CITY COUNCIL WORK SESSION — NOVEMBER 12, 2024 15 Councilmember Monson asked where the $182,000 fits into the 2025 budget. Finance Director Yang said that is a year over year change. We do it as a comparison to see where we are year over year, in terms of a levy increase. When we look at 2025 budget, we are looking at total revenues over total expenditures. Whatever revenues come short of those expenditures is considered underfunded. Councilmember Monson asked if we assume there are no updates, the 15.5% levy will have us at $0, but we'll have a $182,000 deficit that will carry over from 2024. Finance Director Yang confirmed. Councilmember Monson said if we wanted to cover that $182,000, we would have raise the levy more than 15.5% or have more revenue than we anticipate come in in 2025. We can't raise the levy and we aren't expecting additional revenue so we would have to cut $182,000 out of this budget. Finance Director Yang said if we had budgeted a deficit of $182,000 and we meet that budget, we would say we are going to be on budget. We are anticipating that we are going to be in a $183,000 deficit position. That hits the fund balance. That reduces our overall General Fund balance, which is essentially our retained earnings or reserves. Councilmember Monson asked if we are taking money from the future by not funding that. Finance Director Yang confirmed, you can think of it in that sense. Councilmember Monson this level of detail makes things look worse than she thought. She is okay with 15.5% and 13%. Does anyone else has a different percentage they would like to show at the Truth in Taxation. Councilmember Fabel thinks we should present the 15.5% knowing that we are going to have expenses over and above what we have previously budgeted; to include union negotiations and other expenses. Mayor Grant said we'll know that before the Truth in Taxation hearing. We'll take that into consideration at that time. C. 2025 Fee Schedule Discussion Mayor Grant doesn't have any problem with the proposed Fee Schedule. He asked if there is anything Council would like to discuss. Councilmember Holden asked when the cannabis fees will be added. Assistant to the City Administrator/City Clerk Hanson said she will have a draft for the registrations, to include what can be charged for a City fee. That is governed in State Statute. That will be brought to the meeting on November 25.