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Payment in Lieu of Taxes (PILOT) or Service Fee — Tax-exempt entities (30% of City properties are tax-exempt) make voluntary annual payments to the City to cover wear and tear on roads and for police/fire services (Saint Paul and Minneapolis) Municipal Advisory & Feasibility Studies: Engagement with the City's municipal advisor to conduct formal gap analyses and feasibility studies on alternative revenue streams o Utility Rate Study — the last rate study was conducted in 2018 o PIR Funding — Building a long-term financial plan, by implementing sustainable revenue strategies (grants, cash, and bonding/debt service outlook) for Streets, Parks, and Trail improvement projects, while preserving the City's AAA bond rating. Following the 2026 budget process and discussions on strategic planning initiatives, staff is seeking Council feedback on reengaging the Financial Planning and Analysis Committee (FPAC). GFOA Best Practices suggests that financial policies should be monitored, reviewed, and updated as needed in a systematic way. In Arden Hills, there is no set schedule, and some of our policies are reviewed more often than others. At Ramsey and Washington counties, that practice is done every 3-5 years. This committee was originally formed in 2007 to provide modeling, projections, and suggest fiscal policies surrounding the longer -term impact of current and near -term decisions. A main responsibility was to provide advice to the City Council and staff concerning long-term financial planning as well as make recommendations on city financial policies and procedures. The last meeting for FPAC occurred in 2020. In 2022, Council direction was not to dissolve FPAC but rather consider it an ad -hoc task force/work group that would be utilized as needed. 2018 Work Plan summary of Purpose: The Financial Planning and Analysis Committee's purpose is to provide modeling, projections, and suggest fiscal policies surrounding the longer -term impact of current and near -term decisions. This includes: build versus lease decisions; future Fire/Police capital facilities/equipment; fund balance policies and capital improvement plans. Use of public financing to achieve these objectives is included in this mission/purpose. Review of operating expenses and annual budget are explicitly excluded from the scope and responsibility of this committee, provided however, that this committee will depend upon financial reports and actual financial history of the City. Past agenda items: • Business Subsidy Policy and made recommendations on language/offerings • Purchasing Policy (current policy revised 7/28/14) and Fund Balance Policy (current policy revised 4/28/14) • Health insurance renewal (this is currently facilitated through personnel committee), Comp/Pay study • Review of Recreation Programs (i.e., revenue history, financial info, and history of personnel allocations to rec programs) Staff believes that, with the strategic planning initiatives approved by the City Council, the timing is opportune to consider the role of this committee and the potential value it might bring to future budget planning strategy discussions and policy reviews. The City Council, as part of the discussion on alternative funding sources, is asked to consider and provide direction on FPAC. Budget Impact None. This memorandum is for informational and discussion purposes only. There is no immediate fiscal impact. However, the successful implementation of any alternative revenue source would be Page 2 of 3