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ARDEN HILLS CITY COUNCIL — JUNE 9, 2025 4 Councilmember Rousseau asked how many cities LB Carlson worked for. Mr. Nielsen explained LB Carlson worked for approximately 50 different municipalities. Councilmember Rousseau questioned if there were any intergovernmental revenue trends for cities with a population of 10,000 to 20,000. She asked if the City was missing out on any opportunities that Arden Hills should explore. Mr. Nielsen commented intergovernmental revenues were typically attributed to local government aid and grants. He reported he did not see Arden Hills missing out on opportunities for grants or intergovernmental revenues. Councilmember Rousseau explained she was interested in building partnerships with neighboring governments. She inquired if there were any trends when it came to park and recreation spending per capita. Mr. Nielsen indicated COVID impacted cities differently and was extremely difficult on cities that had community centers. He commented golf courses were another amenity that was busy during COVID and may now be falling off. He explained Arden Hills has remained stable when it comes to park and recreation spending. Councilmember Monson discussed the general fund financial position and asked what the best management practices were for maintaining a healthy general fund balance. Mr. Nielsen reported as an auditor he could not make recommendations, but stated he could offer rules of thumb. He indicated per the GFOA the City should have one to two months of operational funding on hand, or 5% to 10%. He commented that the State auditor's office has suggested cities have 25% to 40%. He discussed how cities typically have a fund balance policy that required a balance close to 50% given how cities only receive property tax payments twice a year. Mayor Grant stated in a 50% scenario, the goalposts for the tax levy would have to be pushed out further each year. He indicated the City has had two years of double digit levy increases, which makes it difficult for the City to achieve a 50% general fund balance. Councilmember Holden commented on the water and sewer fund balances. She indicated there were surpluses in both of these funds due to upcoming expenditures, which included new water meters and stormwater pond cleaning. 6. STAFF COMMENTS A. Transportation Update Councilmember Holden asked if the County would be adding any new bollards along Lake Johanna Boulevard. Public Works Director Swearingen explained he could speak with the County and would report back to the Council.