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ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION — AUGUST 25, 2025 29 funded by the levy vs. the franchise fee. With the franchise fee you are getting it but it doesn't grow to cover increases. Finance Director Yang said with the levy you would grow your cumulative balance. It is making sure you are building up that reserve and making sure there is less impact to the taxpayers. The franchise fees are just one annual revenue. It doesn't grow. Councilmember Holden said it can grow. Finance Director Yang said it can grow, if we decide that we want to grow it. Mayor Grant said the remodel of the fire station on County Road I isn't included. He thinks it is imperative to deliver the message that it shouldn't grow this quickly. Councilmember Holden said the message has been received by them, from her. Finance Director Yang wanted to discuss the Tree Trust. Due to the strong demand and positive feedback from residents around the 2025 Tree Trust partnership pilot program, Tree Trust has asked the City to continue its tree sale partnership. That promotes environmental sustainability. The 2026 is estimated to be $6,750. She asked if Council is interested in continuing this partnership. If so, should this come from the Tree Preservation and Landscaping Fund. Councilmember Holden asked what the $6,750 pays for. Does it subsidize the price of the trees? She thought they were expensive trees with no warranty. People can go buy a tree at a different area. She would rather put trees in the parks, rather than in individual homes. Councilmember Weber got one of the trees. He recently planted a line of trees along his yard. He bought them at auction. They cost four or five times as much as the one he bought from the Trust. It is a little smaller than the other trees he purchased but it would have been at least double or triple in price. He thinks it is a great value for residents. Councilmember Rousseau said Anne Hall surveyed people. She said our residents were very happy with this program. She thinks this should be included in the budget and have Staff prepared to help support that, if they can. The Arden Hills Foundation may be willing to cover some of that, as well. Councilmember Monson thinks the dollar amount is minor and it is supporting our tree canopy in the City. She thinks the amount is minor compared to the benefit. She is surprised that it is being called out. She asked if that is because it's new. Finance Director Yang confirmed. It was a pilot program in 2025. Councilmember Monson asked what the limit is that City Administrator Jagoe can approve. City Administrator Jagoe replied $10,000. Councilmember Monson said she thinks this is such a small amount of money. She supports moving forward with it.