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ARDEN HILLS CITY COUNCIL WORK SESSION — NOVEMBER 24, 2025 2 A. Rum River Plumbing Delegation Discussion Mayor Grant said the plumbing delegation we currently use is the State. The State takes 100% of plumbing fees. If we move to Rum River, they will take 80%. This is allowed in statute. Community Development Director Reilly said Staff is asking Council to consider switching from the State reviewing plumbing plans and move to Rum River holding our delegation. Our current contract with Rum River already has a clause in it that allows this to happen in the future. It is designed to speed up the timeline for commercial projects. The State is at least six weeks behind and it often takes longer. Rum River holds the delegation for multiple neighboring Cities and can complete the work faster. We would also receive some revenue which we don't currently receive. Community Development Directory Reilly said we must update our ordinance, so it no longer refers to the Department of Labor and Industry. There will be a public hearing at the City Council because it's an ordinance change. Mayor Grant said there is no downside. We are familiar with Rum River and have used them before. We will get better customer service and will be able to keep a small amount of the plumbing fees. It's a consent item. Councilmember Monson asked Staff to confirm there are no downsides with.making this change. Community Development Directory Reilly confirmed. Councilmember Holden said the memo states that Rum River is more expensive. That was reflected in the fee statement. So, more money will come in overall and the City will get 20% of that. Councilmember Weber asked if it has to be heard at the Planning Commission. Mayor Grant said no. Councilmember Rousseau is in favor of this. Mayor Grant said seeing that no member of the City Council opposes this, Staff is directed to bring it forward to a Council meeting with the necessary changes. B. 2026 Budget Discussion Finance Director Yang said this discussion will be an important step in finalizing the City's financial strategy for the upcoming year. The Truth in Taxation (TNT) Public Hearing for the 2026 Budget and CIP will be December 8. Finance Director Yang said Staff is anticipating that the 2025 General Fund or operating results will come in approximately $900,000 better than the budget. The General Fund unassigned balance will come in at approximately 55.8% or 5.8% over the 50% target. This provides an