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ARDEN HILLS CITY COUNCIL—DECEMBER 9, 2024 9 speaking to the Council about the unsustainability of underfunding the budget and deficit spending. She indicated she would not continue with the unsustainability of the underfunding because she believed this was fiscally irresponsible. She supported keeping the budget balanced, while also keeping the general fund at a minimum with inflation. Mayor Grant asked why there was an asterisk on the 2024 general fund. Finance Director Yang reported this indicates the 2024 general fund was predicted as of the end of September. She commented she does have another projection as of the end of November that shows the City was approximately $14,000 short. Mayor Grant commented when looking across the years, the ending fund balances were around $3 million each year. He was of the opinion the City was doing pretty good meeting obligations and raising taxes in an amount that equals what will be spent. He discussed how surpluses have been transferred out in the past per the City's fund balance policy. He noted the City did underfund this year by about $180,000, but in the final analysis, the City spent close to what was projected. He reported this was done each year because the City has not spent 100% of every single cost center as this would overtax the residents. Councilmember Holden stated the $400,000 that was transferred was set aside for future equipment replacement or vehicle purchases and noted this overage was the City overtaxing its residents. She commented these purchases have to be made out of the general fund and the Council had put these funds aside for CIP purchases. She indicated she was concerned with the fact the proposed budget has not had any strategic planning,but rather items were added and were being approved. She discussed how the City had three major trails coming up that would require City funding. She was of the opinion trails were more important to the community than parks because 27% of the City's population was 15 and under. She did not believe a master park plan should be a priority at this time and she did not believe the City's parks were underfunded. She reported the City's parks were in really good shape and were always well manicured. She commented further on potential cuts that could be made to the budget. She recommended the parks master plan be pushed out several years in order to assist with reducing the tax levy. Councilmember Rousseau explained this reminded her of the discussions that were held last year noting the Council voted to support a 12.5% tax levy increase. She noted the Mayor supported only a 10% levy increase. She discussed how approving the 12.5% levy increase kept the general fund budget on track. She hoped Councilmember Holden would support the parks master plan in order to make the City's parks a priority going forward as that was one of the priorities that she had told the community she was interested in. Mayor Grant reported earlier there was a comment about growing the City's tax base. He agreed the City wanted to grow its tax base through TCAAP, but noted this development would also grow the City's costs. He reported the Council voted to underfund the budget by $182,000 last year and the last projection had the budget coming in within $14,000. He reported he did not support overtaxing the residents of Arden Hills, which was why he supported some level of underfunding. He discussed the proposed shelter building and noted the $85,000 expense was quite high. He asked if the Hazelnut Park parking lot was in the budget at$315,000. Finance Director Yang reported this expense was included in the budget.