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ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION — AUGUST 25, 2025 28 Finance Director Yang said the page he is referring to is the reserve build up. That's included in the two line items that are highlighted in red. That's where we see the levy increase, annually, based on that reserve build up. The transfer to the General Fund line item is what we would transfer annually to fund those incremental FTEs. Councilmember Weber said most people are concerned about the percentage increase in the levy every year. It's important, when looking at a steep increase to do something to the levy. The next year, if it happens again, the percentage increase doesn't look as steep. That's why our levy looks so large. Historically they haven't been raised with inflation. He thinks the money should come out of a levy increase. He just doesn't know how that fits into the overall scheme. Councilmember Holden said we have always had a 5-10 year budget in front of us. We have looked ahead. We paid cash for a lot of things. To imply we haven't done stuff in the past, isn't the way it happened in the real world. She said we keep talking about increasing the Fund Balance so we have more and more money. How much money do we all want? When do we get to the point where Arden Manor or the townhouses can't afford it? We all have professional jobs and spouses that have professional jobs and it's easy for us to eat a couple hundred by the time we get the tax statement from Ramsey. Is increasing the Fund Balance our main goal so we have unlimited money? Finance Director Yang said it is based upon project expenditures that are set today, it's important that we maintain a positive Fund Balance. If we see dips in Fund Balance, we want to level it or increase it for future project expenditures to happen. It is an annual exercise we have to go through to make sure we are financially stable, long-term. Mayor Grant said we plan a 5-year CIP. We take a look at inflation. Staff goes and talks amongst themselves. We go through this every year. It's not like we are failing to plan. Finance Director Yang has done countless iterations of various financing strategies. She has worked with police, fire and the County to put this together so we can digest it. A year from now we'll be back here. Staff will have done another year in the CIP. We always keep looking at it and planning. We do account for inflation. He is thankful for all the hard work that Staff does. He won't insinuate that they haven't done any planning. Councilmember Monson asked if Councilmember Holden knows the Fire Boards sense on the additional three FTEs. They got the six, partially because they got the Safer Grant. That was after they got a $2 million ladder truck. They got a new fire station. She understands there was approval to order another ladder truck. Now they are asking for another three FTEs. How much does this fire department need in such a short period of time? Councilmember Holden said we can be one vote against the proposed FTEs. Another city is thinking about it but they don't know how to fund it. The bottom line is they want a fire department that is 100% paid people. No volunteers, no part time staff. They want a full time fire department. Councilmember Monson thinks this is too much, at once. We are doing our best to balance it, but it's a lot. She would love to see that spread out a bit. She understands we have one vote and Shoreview has two. The rest are fire fighters. They aren't going to vote against the chief s budget. She would like to see them push some of this out. She doesn't have a strong opinion on if it is