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ARDEN HILLS CITY COUNCIL — DECEMBER 8, 2025 5 Finance Director Yang deferred this question to the City Administrator. City Administrator Jagoe reported the numbers from the Finance Director aligns with Ramsey County's proposed budget. She explained the additional $140,000 will be charged to contract cities in a 2025 budget amendment and were not proposed for 2026. Mayor Grant requested further information on where the City stands with the 2025 budget. Finance Director Yang stated after reviewing the 2025 actual activity for revenues and expenditures, the City would be coming in $900,000 better than budget which would create additional reserves for the City. Councilmember Monson questioned what staff s recommendation would be for these reserves. Finance Director Yang recommended the City use $780,000 of the surplus to replenish the general fund's fundbalance and utilizing the remaining $120,000 for one time expenditures in 2026. Councilmember Holden asked if the surplus includes the $122,009 budget deficit. Finance Director Yang reported the 2026 budget would have to consider the $122,009 deficit because there was a foundational gap. Councilmember Holden inquired if investment earnings could be used for cash flow matters. Finance Director Yang stated investment earnings could be utilized for cash flow needs. Councilmember Monson requested staff speak to how the City has a surplus. Finance Director Yang reported the surplus extends from two factors. She indicated the City received building project revenues that were higher than anticipated in the budget. In addition, the City had personnel savings due to position vacancies. Councilmember Monson stated the staff recommended levy increase of 15.97% would increase property taxes for the median value homeowner by $226 per year or $19 per month. Councilmember Rousseau explained Arden Hills had a banner year when it comes to permit revenues. She asked how much the City saved in staffing costs in 2025. Finance Director Yang reported the City saved $363,000 in staffing costs this year. Councilmember Weber requested further information on how the tax levy has been reduced from 18.32% to 15.97%. Finance Director Yang stated there was a reduction to the Ramsey County Sheriffs Office Contract of $101,056. In addition, the EDA levy was reduced by $50,000. She indicated there was a slight increase to current wage and corresponding step increases for recent hires. She noted the last adjustment was due to slight reductions in union health and dental premiums.