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model, the annual levy would need to increase by an additional $12,000 in 2026, then increase by
<br />varying amounts in subsequent years per the below chart.
<br />9 FTE
<br />Beginning Cumulative Tax Annual Tax Ending Year YOY%
<br />City Share Year Balance Levy Increase Levy Increase Balance Levy Inc
<br />2024 - - 40,000 40,000 40,000
<br />2025 - 40,000 80,000 40,000 120,000
<br />2026 - 120,000 132,000 52,000 252,000 30%
<br />2027 (325,000) 252,000 190,000 58,000 117,000 12%
<br />2028 (341, 250) 117,000 255,000 65,000 30,750 12%
<br />2029 (358, 313) 30,750 327,563 72,563 1 12%
<br />2030 (376,228) 1 376,228 48,665 0 -33%
<br />2031 (395, 040) 0 395,039 18,811 (0) -61 %
<br />2032 (414, 792) (0) 414,792 19,753 0 5%
<br />2033 (435, 531) 0 435,531 20,739 0 5%
<br />2034 (457, 308) 0 457,307 21,776 (0) 5%
<br />2035 (480,173) (0) 480,173 22,866 (0) 5%
<br />Staff has programmed the incremental $12,000 as a levy increase into the 2026 proposed budget;
<br />however, below are other options the City could consider in order to finance the additional FTE
<br />costs:
<br />• Franchise Fees.
<br />• Utilize excess franchise fees to cover (2026 will have $380,000 and $165,000
<br />annually thereafter). Council will need to consider whether these funds will be
<br />needed to meet other priorities (i.e. LJFD new station project change orders or
<br />incremental costs).
<br />• Increase Electric Franchise Fee rates by amending the existing Electric Franchise
<br />Fee Ordinance.
<br />• Implement a Gas Franchise Fee rate structure by amending the existing Gas
<br />Franchise Ordinance to include fees and adopting a Gas Franchise Fee Ordinance.
<br />• Levy Taxes and Utilize Excess Franchise Fees.
<br />The $742,866 tax levy increase being proposed for the General Fund is $339,635 more than the
<br />increase needed to cover police and fire services, which makes up 54.3% of the proposed General
<br />Fund levy increase or $403,231.
<br />Recreation
<br />Rec on the Go is a recreational pilot program that started in 2025 between Mounds View and Arden
<br />Hills. The total cost in 2025 was approximately $6,000 (staffing only), which was covered by
<br />personnel savings from other recreational programs. Due to its success, staff is seeking a separate
<br />budget of $8,100 in 2026, which would include both staffing and supplies/materials, to continue its
<br />operations.
<br />Revenues
<br />There are no significant projects included in the 2026 budget which would affect the permit
<br />revenue. The permit revenue included reflects only the estimated recurring "base" amount, similar
<br />to what was included in the 2025 budget.
<br />General Fund budget to actual comparisons for the past three years is included as Attachment C.
<br />Page 5 of 11
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