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HomeMy WebLinkAbout08-25-25-SWSAddress: Mayor: 1245 W Highway 96 David Grant It Arden Hills MN 55112 ­-S EN HILLS Phone: Councilmembers: 651-792-7800 Brenda Holden Special City Council Emily Rousseau Work Session Agenda Website: Tena Monson www.cityofardenhills.org Kurt Weber August 25, 2025 5:00 P.M. City Hall City Vision Arden Hills is a strong community that values its unique environmental setting, strong residential neighborhoods, vital business community, well -maintained infrastructure, fiscal soundness, and our long-standing tradition as a desirable City in which to live, work, and play. Members of the public may attend a meeting in -person at City Hall or they may view the meeting remotely on the City's website using the below link. Meetings are also broadcast on Cable Channel 16 for those that live in Arden Hills. https://cityofardenhills.orci/320/Watch- City-Meetings This meeting will be streamed live on local Cable Channel 16 and available for playback on our website. CALL TO ORDER 1. PUBLIC INQUIRIES/INFORMATIONAL This is an opportunity for citizens to respectfully bring to the Council's attention any items which are relevant to the City. In addressing the Council, you must first state your name and address for the record. Comments shall be limited to three (3) minutes or less. Written documents or other materials should be handed to the City Clerk for distribution to the Council prior to or during the meeting. Council will generally not respond at the same meeting where an issue is initially raised by a member of the public but the Council may refer the issue to staff for further research and possible report or action at a future Council meeting. 2. RESPONSE TO PUBLIC INQUIRIES 3. AGENDA ITEMS 3.A. Utility Billing Rate Discussion Joua Yang, Finance Director Documents: MEMO.PDF ATTACHMENT A.PDF ATTACHMENT B.PDF ATTACHMENT C.PDF 3.13. 2026 CIP And Operating Budget Discussion Joua Yang, Finance Director Documents: MEMO.PDF ATTACHMENT A.PDF ATTACHMENT B.PDF ATTACHMENT C.PDF ATTACHMENT D.PDF ATTACHMENT E.PDF 3.C. Agenda Planning Jessica Jagoe, City Administrator Documents: MEMO.PDF ATTACHMENT A.PDF ATTACHMENT B.PDF 4. COUNCIL/STAFF COMMENTS ADJOURN AGENDA ITEM - 3A -ADEN HILLS MEMORANDUM DATE: August 25, 2025 TO: Honorable Mayor and City Councilmembers Jessica Jagoe, City Administrator FROM: Joua Yang, Finance Director SUBJECT: Utility Billing Rate Discussion Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Council Should Consider Provide feedback and direction to staff on Utility Billing Late Fees. Background Per City Ordinances 1000.20 (Water) and 10 10. 11 (Sewer) Rates and Charges, and 10 10. 14 Surface Water Management Utility, when utility accounts are over 30 days past due, the City assesses an 8% late penalty. This is a one-time late penalty that is assessed against the utility account's outstanding invoice amount. The City has, historically, waived late penalties on a case - by -case basis, with the below common themes: • Auto -Pay was rejected due to an expired credit card; however, auto -pay was reinstated and payment was made at time of waiver request • One-time late fee, history is in good standing and no late fee adjustments were made within the past few years; payment was made at time of waiver request • City internal billing error (i.e. set-up error, misapplied receipts) • Change in account owner In addition to the one-time late penalty, all accounts over 90 days past due are assessed an additional 8% delinquent penalty, and is certified quarterly with Ramsey County. Collection occurs with the subsequent year's property taxes. The City does not have a formal policy for waiving late fees assessed on utility accounts. Staff inquired with neighboring cities regarding formal policies and/or practices, with the below findings: Page 1 of 2 City %of Late Fee When is the late fee assessed? What is your City policy for waiving late fees? Charged After how many days? If none, what is the common practice/process? Common Practice: One in a 2-year period. Waive up to Brooklyn Park 10% 1 day after the due date 4 late fees if they pay the difference and Enroll in autopay going forward. They must keep autopay for 1 year. Edina 5% 10 days after due date One per account lifetime. Lino Lakes 10% 5 days after due date Common Practice: One per account lifetime. Little Canada 5% A few days after due date Common Practice: One per account lifetime. Fees primarily waived due to Cit 's billing error. Maple Grove 10% 10 days after due date Common Practice: One in a 3-year period. Minneapolis 5% 2 days after the due date One per year. Mounds View 10% Between 1-15 days after due date Not a common practice. Maybe if there is a pending sale. Common Practice: One in a 2-year period. Exceptions New Brighton 10% Between 3-5 days after due date for issues with prior 3rd party payment processor or other circumstances. Shoreview 10% Between 3-5 days after due date 1 One in a 3-year period. Council Discussion Staff is seeking further discussion from the City Council regarding the existing ordinance and the City's current practices for waiving late fees on utility accounts. Council Direction Staff received an inquiry about extending the 30-day past due delinquent period for utility bills. Staff is seeking further direction from Council on whether to consider a longer delinquent period, such as 45 or 60 days. Budget Impact There is no budget impact to the City. Attachments Attachment A: City Ordinance 1000.20 Water Rates and Charges Attachment B: City Ordinance 10 10. 11 Sewer Rates and Charges Attachment C: City Ordinance 10 10. 14 Surface Water Management Utility Page 2 of 2 1000.20 Rates and Charges. Attachment A Subd. 1 Keeping Water Accounts. All water accounts shall be kept by the City Administrator by house and street number and under the account number assigned thereto, and also by the name of the owner. Bills and notices sent out by the City Administrator shall be sent to the house or street number of the party. If nonresident owners or agents wish notice sent to a different address they shall file an application therefor with the City Administrator. Any error in address shall be promptly reported to the City Administrator. Subd. 2 Water Rates. A. The rate due and payable by each water user within the City for water taken from the water system shall be as established by Ordinance adopted by the Council. B. In case the meter is found to have stopped, or to be operating in a faulty manner, the amount of water used will be estimated in accordance with the amount used previously in comparable periods of the year. If no comparable period is available the City Administrator shall, with the consent of the Council, set an estimated charge on the basis of his or her best judgment. C. Where service is for less than a quarterly period, the quarterly charge shall be prorated on a monthly basis. D. Rates due and payable by each water user located beyond the territorial boundaries of the City shall be determined by special contract. E. In case a service pipe is connected to the stop box and laid into the building, but the property owner does not wish to connect immediately to the building piping for use, the minimum rates shall be charged as provided in Subpart A above. F. In the event the water customer elects to discontinue use of municipal water the minimum charge shall continue until such date as the service pipe is excavated and disconnected at the stop box. The disconnection shall be inspected by an appropriate City official before backfilling occurs. G. In addition to the above charges for water consumption, each water user within the City shall pay an additional quarterly demand charge for the purpose of covering certain fixed costs of the City in maintaining the municipal water system, which charges shall be as established in resolutions adopted from time to time by the City Council. H. The owner(s) of any premises shall be solely responsible for the payment of any water or sewer usage or service charge, whether or not the water or sewer, usage or service, have been used by the owner(s) or tenants. Subd. 3 Payment of Charges. A. Statements for total water charges for the preceding quarterly period shall be mailed by the City Administrator to each property owner on or before the tenth day of the month following the rolling billing area. B. Such statements shall be due on the last day of the month following the quarterly period covered by the statement. Any prepayment or overpayment of charges may be retained by the City and applied to subsequent quarterly statements. Subd. 4 Delinquency Penalties and Collection of Delinquent Charges. A. A delinquency penalty of eight (8%) percent of the unpaid water bill for charges shall be charged, effective thirty (30) days after the rolling billing quarter, in accordance with the following schedule of billing dates: For the first quarter April 30 For the second quarter July 31 For the third quarter October 31 For the fourth quarter January 31 If the delinquency date falls on a nonbusiness day for the City Hall, the penalties shall be imposed on the next business day, but first crediting payments received on that day. B. Except as otherwise provided in this section, the delinquency penalty shall be imposed upon and added to all unpaid water bills by the City Administrator and mailed in the usual course at the next regular billing date, showing in the same bill the current billing after the first penalty date. C. The Council has noted that, under Subd. 3, section bills are due at the end of the billing month, and accordingly the delinquency charge shall be imposed consistent with the due date of a billing. D. Any amounts due for water charges in excess of 90 days past due, may be collected in a civil action brought for that purpose in the name of the City; or the City Administrator, upon direction by the Council, may certify to the county auditor the amount due, together with the legal description of the premises served, and the City Administrator, in so certifying, shall add to the amount as a separate item, in addition to the delinquency penalty hereinbefore provided, an additional delinquency penalty of eight (8%) percent of the original unpaid amount, inclusive of any previous delinquency penalty. The county auditor shall enter the amount as part of the tax levied on the premises to be collected during the ensuing year. No additional delinquency penalties shall be added to unpaid bills after certification to the county auditor as provided in this subdivision. 1010.11 Rates and Charges. Attachment B 00I11TEi=M@IMTTI A. Rates and charges to be imposed on the various categories of structures connected to the municipal sanitary sewer system shall be established by Ordinance adopted by the Council. In establishing the rates and charges, the Council shall employ any one or a combination of the methods and bases set forth in M.S. § 444.075 (3), as now constituted and as hereafter amended. B. Charges for mobile homes and apartments shall be billed to the owner or management of the mobile home court, park or apartment building in which the same are respectively located. Charges will be based on the number of units. C. Certain premises, because of their discharge of industrial sewage wastes or voluminous or strong sewage wastes, may be subject to supplementary charges imposed by governmental agencies or subdivisions other than the City. In such event, the City may impose, as established by Ordinance and adopted by the Council, a supplementary charge based generally upon and at least equal to the amount of the supplemental charge imposed by the other governmental agency or subdivision. D. All owners of properties other than single family dwellings, duplexes or two-family dwellings, mobile homes or trailers and apartments which are not connected to the municipal water system and are not excepted, shall install a meter on their water supply as part of any building program on the premises, and in any event within ten (10) days after receipt of written notice to do so from the City Administrator. Such meter shall be designed in such manner as to accurately measure water consumption, shall be of a type approved by the director of public works, shall be maintained in good operating condition without expense to the City, and access thereto shall be given to employees of the City at all reasonable times for the purpose of testing or making readings. E. If the director of public works determines that a portion of the water measured by the water meter does not and cannot enter the municipal sanitary sewer system, then the City may permit or require the installation of other additional meters in such a manner that the quantity of water which actually could enter the sewer system may be determined. F. The owner of the property shall supply the City, upon request, with such information as the City may reasonably require related to the use of a private water system. G. The owner(s) of any premises shall be solely responsible for the payment of any sewer usage or service charge, whether or not the sewer, usage or service has been used by the owner(s) or by tenants. Subd. 2 Payment. Statements for total sewer charges for the preceding quarterly period shall be mailed to each customer on or before the tenth day of the month following the rolling billing quarter. The balances shown due shall be due and payable at the office of the City Administrator on or before the last day of the month. Prepayments or overpayments of charges may be retained by the City and applied to subsequent quarterly statements. The City Administrator by direction of the Council, may designate another office to mail notices and receive payments under this subsection. Subd.3 Delinquencies. A. A delinquency penalty of eight (8%) percent of the unpaid sanitary sewer bill for charges effective on the date stated shall be charged, in accordance with the following schedule of billing for specific districts: For the first quarter April 30 For the second quarter July 31 For the third quarter October 31 For the fourth quarter January 31 If the delinquency date falls on a nonbusiness day for the City Hall, the penalties shall be imposed on the next business day, but first crediting payments received on that day. B. Except as provided in Subd. 4 below, the delinquency penalty shall be imposed upon and added to all unpaid sanitary sewer bills by the City Administrator and mailed in the usual course at the next regular billing date, showing in the same bill the current billing. C. Seven bills are due at the end of the billing month, and accordingly the delinquency charge hereunder will be imposed more than a month after the due date of a billing. Subd. 4 Collection. Any amounts due for sanitary sewer charges in excess of 90 days past due may be collected in a civil action brought for that purpose in the name of the City; or the City Administrator, upon direction by the Council, may certify to the county auditor the amount due, together with the legal description of the premises served, and the City Administrator in so certifying, shall add to the amount as a separate item, in addition to the delinquency penalty an additional delinquency penalty of eight (8%) percent of the original unpaid amount, inclusive of any previous delinquency penalty. The county auditor shall enter the amount as part of the tax levied on the premises to be collected during the ensuing year. No additional delinquency penalties shall be added to unpaid bills after certification to the county auditor. Attachment C 1010.14 Surface Water Management Utility. Subd. 1 General Operation. The municipal surface storm water runoff system shall be operated as a public utility, hereinafter called the "surface water management utility," pursuant to M.S. § 444.075, as amended from time to time, from which revenues will be derived subject to the provisions of this chapter and Minnesota Statutes. Subd.2 Definitions. A. Quarterly Surface Water Management Budget. The estimated quarterly expenditures for planning and inventories, capital expenditures, personnel and equipment and operation of the surface water utility, in accordance with established City policy. This budget shall be established from time to time by City Council resolution. B. Surface Water Management Fee. The quarterly charge developed for each parcel of land pursuant to City regulations and zoning classifications and shall be established by Ordinance adopted by the Council. C. Utility Factor. The ratio of runoff volume, in inches, for a particular land use, to the runoff volume, in inches, for a 1/3 -acre residential lot, assuming a two-inch rainfall and soil conservation service, or (SCS), "Type B" soil conditions. Subd. 3 Establishment of Fees. Surface water management fees shall be established by Ordinance adopted by the Council. The following steps shall be taken to determine the quarterly fee to be charged to each property: A. A calculation shall be made of the total area, in acres, of all zoned property within the City. B. A determination shall be made whether each individual property within these zoning classifications is developed or undeveloped. C. The total number of developed acres of property within these zoning classifications shall be calculated. D. The total acreage of developed property zoned as R 1, single family residential, shall be divided by the total acreage calculated in Step C. This yields the percentage of total developed property that is zoned R 1. E. The City Council shall establish, by resolution, the quarterly budget for the revenue to be generated. F. The portion of the quarterly budget to be charged against properties zoned R 1 shall be calculated by multiplying the percentage found in Step D. by the budge amount in Step E. G. The rate per acre for property zoned R 1 shall be calculated by dividing the revenue for R 1 properties in Step F, by the total acreage of developed properties found in Step C. This rate shall be the basis for all rates charged to any other zoned properties within the City. H. The volume of storm water runoff shall be calculated for all properties zoned R-1, R-2, R 3, R 4, 1 1, 12, B 1 and B 2. The methods used for these calculations shall follow the U.S. Department of Agriculture Soil Conservation Service guideline for soil types common to Arden Hills. A curve number shall be chosen for each zoning classification, which shall be an approximate measure of the percentage of impervious surface on the property. The volume of runoff for each zoning classification shall be calculated using the following equation. Q = .(P - 0.2S)5 P + 0.8S Where Q = runoff, cfs S = (1000/cn) 10, dimensionless P = 2, inches I. The runoff value calculated in Step H for R 1 properties shall be considered the base rate. The runoff value for each of the other zoning classifications shall then be divided by the base rate to yield a utility factor for each zoning classification. This utility factor shall be a measure of the additional runoff created from the property as compared to a single family lot. The utility factors for each zoning classification shall be listed in the following subdivision. J. The rate per acre for all zoning classifications, except R 1, shall be calculated by multiplying the utility factor found in step I by the base rate determined in Step G. K. The owner(s) of any premise(s) shall be solely responsible for the payment of any storm water runoff charge calculated for the property. Subd. 4 Factors for Determining Fees for Various Land Uses. The utility factors for various land uses used to determine the surface water management fees are assigned as follows: Districts Land Use Utility Factor R 1 Single Family Residential (1\3 acre lots) 1.00 R 2 Single and Two Family Residential; (1/4 1.31 acre lots) R 3 Townhouse and Low Density Multiple 2.72 Dwellings R 4 Multiple Dwelling 2.72 1 1, 12 Limited and General Industrial 4.25 B 1, B 2 Limited and General Business 4.25 Subd. 5 Adjustment of Fees. The City Council may adopt an Ordinance for the adjustment of the surface water management fees. Information to justify a fee adjustment shall be supplied by the property owner. Surface water management fees shall be adjusted under the following conditions: A. The estimated expenditures for the management of surface water shall be revised at a frequency specified in this code. The fees shall be adjusted accordingly and will follow established City procedures for this adjustment of utility (water and sewer) rates. B. Changes in developed conditions of parcels. C. If it can be demonstrated that an individual parcel retains all or a portion of the rainfall that it receives, the surface water management fee shall be reduced by a percentage equal to that percent of the parcel which produces no external runoff. A fee reduction of 20 percent or greater must be demonstrated. Subd. 6 Undeveloped Land. Undeveloped properties, without regard to zoning classification, shall be assessed at one-half the rate, charged to developed property zoned as R 1. Subd. 7 Exemptions. The following land uses shall be exempt from the surface water management fee: A. Public Rights of Way; B. Lakes; and C. Parks. Subd. 8 Mailing Statements of Charges. Statements for the preceding quarterly surface water management service shall be mailed to each customer pursuant to the same procedures as listed under Subsection 1010.11. Subd. 9 Fee Appeal. If a property owner or person responsible for paying the surface water management fee believes that a particular assigned fee is incorrect, such a person may request that the fee be recomputed. Appeals shall be heard by the Council once a year in accordance with the schedule established for credit applications, in established City policy. Subd. 10 Penalties for Delinquent Payments of Fees. A penalty equal to eight percent (8%) of the amount due shall be added to accounts not paid in full on or before the first day of the second month following the billing periods and to each quarterly billing thereafter until the amount of the delinquent account plus accrued penalty is paid in full or otherwise certified to the county auditor as a delinquent account. Subd.11 Collection. Any amounts due for sanitary sewer charges in excess of 90 days past due may be collected in a civil action brought for that purpose in the name of the City; or the City Administrator, upon direction by the Council, may certify to the county auditor the amount due, together with the legal description of the premises served, and the City Administrator in so certifying, shall add to the amount as a separate item, in addition to the delinquency penalty an additional delinquency penalty of eight (8%) percent of the original unpaid amount, inclusive of any previous delinquency penalty. The county auditor shall enter the amount as part of the tax levied on the premises to be collected during the ensuing year. No additional delinquency penalties shall be added to unpaid bills after certification to the county auditor. AGENDA ITEM - 3B 'It EN HILLS MEMORANDUM DATE: August 25, 2025 TO: Honorable Mayor and City Councilmembers Jessica Jagoe, City Administrator FROM: Joua Yang, Finance Director Preliminary 2026-2030 Capital Improvement Plan (CIP) SUBJECT: Preliminary 2026 General Fund Budget Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Council Should Consider Provide feedback on the Preliminary 2026-2030 CIP Plan. Provide feedback on the Preliminary General Fund budget for the 2026 fiscal year. Background — CIP Plan Annually, the City prepares a five (5) year Capital Improvement Plan for budgeting and forecasting. The focus of the CIP is on the maintenance and protection of the City's existing assets, redevelopment, and investment in new initiatives. The CIP is part of the budget process, but it is not a budget, it is a plan, and one that changes often. The CIP does not commit the Council to the proposed projects, nor implement the assumptions made during the preparation; however, this is the basis for the 2026 Budget as we continue with its preparation. At the July 28, 2025 Special Work Session, Council discussed the preliminary CIP at length (Attachment A) and today will be a continuation of that discussion. Council directed staff to provide several options to the PIR Fund that would be funded by either a levy increase or bonding, and impact to each funding option if changes to the below projects were considered (Attachment B, pages 1-7). All five scenarios assume the below changes for Park Hard Court & Trail Rehab and Park Shelter Replacements will be implemented: • Park Hard Court & Trail Rehab. ($115,500) Change in Fund Balance o Revenue. Adjust funding to be 100% PIR -no grants ($100,000) o Expense. Spread costs out beyond 2026 and keep Arden Manor hardcourt in 2026 ($15,500) • Park Shelter Replacements. $77,500 Change in Fund Balance o Expense. Remove Cummings Park $85,000 and Shift Hazelnut Park from 2026 to 2029 ($7,500) • Street-PMP. $3,447,000 Change in Fund Balance o Revenue. Special Assessments ($436,000) Page 1 of 11 o Expense. Split 2028 PMP into two separate projects — 2028 PMP and 2030 PMP. Shift 2030 PMP — 2034 PMP projects out 2 years. PIR ($2,525,000), PIR & Enterprise ($3,447,000) Scenario A assumes no further changes to project expenditures, a levy increase in 2026 of $350,000 annually, and the levy is kept at that same level annually thereafter. This would achieve a positive fund balance through 2029 and would result in a 5.8% levy increase in 2026. Scenario B assumes no further changes to project expenditures and two bonds to be issued, with the first bond issued in 2026 and the second in 2030. The first debt service payment estimated at $163,000 would occur in 2027 and fund balance would remain positive through 2029, at which time a second bond would need to be issued. The new debt service is estimated to be $342,000 ($179,000 increase) and fund balance would remain positive through 2035. This would have no impact to the levy in 2026, but would do so in the following years. The total interest to be paid over 20 years for the first bond issuance is estimated to be $1.56 million, with the second estimated to be $2.72 million. Scenario C assumes PMP project expenditures are shifted, the levy is increased by $50,000 in 2027, and the levy is kept at that same level annually thereafter. This would achieve a positive fund balance through 2031. This would have no impact to the levy in 2026. Scenario D assumes PMP project expenditures are shifted, the levy is increased by $50,000 in 2027 and annually thereafter. This would achieve a positive fund balance through 2033. This would have no impact to the levy in 2026. Scenario E assumes PMP project expenditures are shifted and the City issues a bond in 2026. Debt service would not start until 2027. This would achieve a positive fund balance through 2033. This would have no impact to the levy in 2026. Additional changes were made to the Public Safety Capital Equipment Fund based on the latest preliminary estimates from the Lake Johanna Fire Department (Attachment A, pages 8-10): • Public Safety Capital Equipment. $247,957) Change in Fund Balance o Expense. Addition of command vehicle replacements in 2031 and 2033, including an engine/ladder replacement programmed in 2032 ($247,957). The levy reserve bank and corresponding transfer to the General Fund is based on 9 new FTEs (6 fire captains and 3 firefighters). Council also directed staff to incorporate the below changes to the Equipment/Building Replacement Fund: • Equipment/Building Replacement. $0 Change in Fund Balance o Expense. Delayed the 1993 Case 621 Loader to 2027 and delayed the 2013 Ford Escape to 2027. No Fund Balance impact. Staff will bring forward an equipment replacement plan to Council in March 2026. This plan will feature a leveled cost structure for further discussion. Page 2 of 11 Background — General Fund Budget Annually, City staff prepares and submits a preliminary budget to the City Council for review and feedback. Attached to this memo is the City's preliminary General Fund budget for the 2026 fiscal year. Each department provided their respective forecasts for this budget. The proposed 2026 budget is $7,507,352, an increase of $746,073 or 11.0%. For the purpose of this discussion, there is a 14.8% or $894,866 tax levy increase reflected in the budget, of which $742,866 for the General Fund, $100,000 for the EDA Fund, and $52,000 for the Public Safety Capital Fund. As presented, the General Fund Budget is underfunded by $122,009, which is the budget shortfall projected in the 2025 budget. This practice is not sustainable in the long term. A tax levy increase of 16.9% or $1,016,875 would be needed to balance the budget in 2026. The table below shows the amount the General Fund Budget is underfunded at different tax levy increase amounts. Tax Lew Increase Underfunded Amount 5% $715,474 10% $414,073 13% $233,233 14.8% $122,009 16.9% $0 Wages and Benefits The 2026 preliminary budget is currently being prepared which assumes a 3.0% wage adjustment for all staff. Below is a table showing the recent history of approved COLA's. Year Non Union IUOE Union 2025 3.00% + addition of P&R Mgr 7.00% + 2 PW Lead Promotions 2024 3.00% 3.00% 2023 3.00% 3.00% 2022 3.00% 3.00% + addition of Fleet Lead 2021 2.00% 3.00% 2020 3.00% Market Adjustment; Minimum increase was 5.80% 2019 2.50% 2.50% 2018 2.10% 2.25% In 2025, the City hired David Drown and Associates (DDA) to conduct a comprehensive study of its compensation and classification structure. As a result of their work, changes were made to the City's wage schedule, and several non -union employees received job reclassifications. These changes maintain the City's competitiveness in the marketplace, putting the City at a 108% market value or 8% above market value. Additionally, union employees negotiated a new three-year contract. There is a 10.0% increase assumed for health, a 4.0% increase for dental, a 0.0% increase for life insurance premiums, and a $15,000 placeholder for the City's share to implement the MN Paid Family Leave required per State legislation for every employer. The number of positions included in the budget increased by 1.0 full-time equivalent (FTE) relative to 2025 based upon Phase 2 of the proposed Public Works organizational structure and staffing changes. Page 3 of I 1 Public Safety 2026 budget information was received from Ramsey County and the Lake Johanna Fire Department for public safety. POLICE The police contract is expected to increase by 13.2% or $231,220 for 2026. Information provided by Ramsey County on this increase is as follows: The major cost drivers include: • Competitive wages as a result of labor contracts and increased costs related to employee health insurance (i.e. increased paid parental leave, new state law for paid medical leave). The RCSO has stated that 2026 should be viewed as an adjustment year as employee compensation was brought in line with neighboring local governments after a significant lag. • Increased costs related to county fees for insurance and administrative overhead/indirect costs. DISPATCH Dispatch costs will increase by 17.4% or $12,780 for 2026. FIRE The fire operating costs are expected to rise by 17.6% or $159,231 for 2026. This is mainly due to the addition of 9 full-time staff (6 fire captains and 3 firefighters), which is an increase of 3 FTEs in 2026; step, COLA, and market adjustments; and an increase in repairs and maintenance, all of which Arden Hills' cost share portion is 24.4%. Please note, the SAFER grant will discontinue starting in 2027 and contract cities will need to fund the new positions. In 2024, the City decided to raise the levy in the Public Safety Capital Equipment Fund each year to build up a reserve for this (see chart below), in order to lower the impact of the annual levy increases. The annual levy increase for the first 4 years would be set at $40,000 and increase to $58,284 in 2030, then taper down starting in 2031. 6 FTE City Share Beginning Year Balance Cumulative Tax Levy Increase Annual Tax Levy Increase Ending Year Balance YOY% Levy Inc 2024 - - 40,000 40,000 40,000 2025 - 40,000 80,000 40,000 120,000 2026 - 120,000 120,000 40,000 240,000 0% 2027 (275,000) 240,000 160,000 40,000 125,000 0% 2028 (288,750) 125,000 207,000 47,000 43,250 18% 2029 (303,188) 43,250 260,000 53,000 63 13% 2030 (318,347) 63 318,284 58,284 (0) 10% 2031 (334,264) (0) 334,265 15,981 0 -73% 2032 (350,977) 0 350,977 16,712 (0) 5% 2033 (368,526) (0) 368,526 17,549 (0) 5% 2034 (386,953) (0) 386,953 18,427 0 5% 2035 (406,300) 0 406,300 19,347 (0) 5% Based on demand and the needs of the contract cities, the fire department has indicated that the current part-time model is no longer working and has proposed a 9 FTE model. Based on this new Page 4 of I 1 model, the annual levy would need to increase by an additional $12,000 in 2026, then increase by varying amounts in subsequent years per the below chart. 9 FTE Beginning Cumulative Tax Annual Tax Ending Year YOY% City Share Year Balance Levy Increase Levy Increase Balance Levy Inc 2024 - - 40,000 40,000 40,000 2025 - 40,000 80,000 40,000 120,000 2026 - 120,000 132,000 52,000 252,000 30% 2027 (325,000) 252,000 190,000 58,000 117,000 12% 2028 (341, 250) 117,000 255,000 65,000 30,750 12% 2029 (358, 313) 30,750 327,563 72,563 1 12% 2030 (376,228) 1 376,228 48,665 0 -33% 2031 (395, 040) 0 395,039 18,811 (0) -61 % 2032 (414, 792) (0) 414,792 19,753 0 5% 2033 (435, 531) 0 435,531 20,739 0 5% 2034 (457, 308) 0 457,307 21,776 (0) 5% 2035 (480,173) (0) 480,173 22,866 (0) 5% Staff has programmed the incremental $12,000 as a levy increase into the 2026 proposed budget; however, below are other options the City could consider in order to finance the additional FTE costs: • Franchise Fees. • Utilize excess franchise fees to cover (2026 will have $380,000 and $165,000 annually thereafter). Council will need to consider whether these funds will be needed to meet other priorities (i.e. LJFD new station project change orders or incremental costs). • Increase Electric Franchise Fee rates by amending the existing Electric Franchise Fee Ordinance. • Implement a Gas Franchise Fee rate structure by amending the existing Gas Franchise Ordinance to include fees and adopting a Gas Franchise Fee Ordinance. • Levy Taxes and Utilize Excess Franchise Fees. The $742,866 tax levy increase being proposed for the General Fund is $339,635 more than the increase needed to cover police and fire services, which makes up 54.3% of the proposed General Fund levy increase or $403,231. Recreation Rec on the Go is a recreational pilot program that started in 2025 between Mounds View and Arden Hills. The total cost in 2025 was approximately $6,000 (staffing only), which was covered by personnel savings from other recreational programs. Due to its success, staff is seeking a separate budget of $8,100 in 2026, which would include both staffing and supplies/materials, to continue its operations. Revenues There are no significant projects included in the 2026 budget which would affect the permit revenue. The permit revenue included reflects only the estimated recurring "base" amount, similar to what was included in the 2025 budget. General Fund budget to actual comparisons for the past three years is included as Attachment C. Page 5 of 11 Property Tax Levy A survey was recently routed to various cities in the metro asking about proposed levy amounts being considered. Below are the results of that survey, averaging 9.4%. Little Canada 11.38% Roseville 7.8% - 13.4% Lauderdale 10.25% Shoreview 10.00% Mounds View 6% - 9% St. Anthony 6% - 16% New Brighton 8.50% Vadnais Heights 9.18% North Oaks 8.00% White Bear Lake 9.97% North Saint Paul 6.50% White Bear Township 7% - 9% Based on the County Assessor's Report, values for the different property types have changed as follows: Property Type 2023 2024 2025 All Residential 5.43% 2.30% 3.79% Single Family Residential 5.74% 2.56% 3.22% Apartments 159.49% -6.68% -4.07% Commercial 12.13% -0.42% 4.70% Industrial 29.85% -0.17% 5.48% The City's total Value for Local Rate is projected to increase by 1.029%, from 20,265,433 to 20,850,320. Below are tables showing the impact of various levels of a city levy increase to Arden Hills' homes, assuming that a home's value is increasing by 3.22%, which is the median amount. Set levy at $6,028,012 (an increase of $0 or 0.0% over 2025 $ 180,000 $ 185,800 $ 156,000 $ 414 $ 414 $ 1 0.2% $ 270,000 $ 278,700 $ 257,200 $ 685 $ 683 $ (1) -0.2 $ 480,900 $ 496,400 $ 494,500 $ 1,320 $ 1,314 $ (7) -0.5% $ 525,000 $ 541,900 $ 541,900 $ 1,469 $ 1,468 $ (1) -0.1% $ 575,000 $ 593,500 $ 593,500 $ 1,642 $ 1,639 $ (3) -0.2% $ 650,000 $ 671,000 $ 671,000 $ 1,901 $ 1,896 $ (4) -0.2% Set levy at $6,329,410 (an increase of $301,398 or 5.0% over 2025) Page 6 of 11 Set levy at $6,630,810 (an increase of $602,798 or 10.0% over 2025) Set levy at $6,811,650 (an increase of $783,638 or 13.0% over 2025) Set levy at $6,922,880 (an increase of $894,868 or 14.8% over 2025) Set levy at $7,044,890 (an increase of $1,016,878 or 16.9% over ZUz5) Page 7 of 11 The 2025 City Tax Rate is 27.6484%. The estimated City tax rate based on the most current information is calculated as follows for the different tax levy increases: 0.00% $ - 26.5696% 5.00% $ 301,398 28.0151% 10.00% $ 602,798 29.4606% 13.00% $ 783,638 30.3280% 14.85% $ 894,868 30.8614% 16.87% $ 1,016,878 31.4466% The 2025 tax rates for other cities in Ramsey County are as follows: 2025 Tax Rates 50.00 40.00 iA nd 3,q23 38.45 39 56 4038 V. RO 32.09 32.38 33.23 30.40 30.00 76.6 21.65 27-90 20.00 in on 48.35 48.98 46.32 — 0 52.70 65-69 ,jp dCp terE�a��p �cam'� ' ceV?te°� oc��c¢�•, RIP, r Fle ,o 10,a c� 4- Page 8 of 11 General Overview A summary of the major changes in the 2026 budget is as follows: Description Transfer to Cable Fund Step Increases 3% COLA Adjustments Public Works Staffing Phase 2- 1 Lead (Jan Start) & 1 Maintenance Worker (Jan Start) Rec on the Go Health Insurance/Work Comp Benefits (10% health; 4% dental) & MN Paid Leave Personnel Costs Increase in RamCo Sheriff Increase in UFD Increase in Ramco Dispatch RamCo Facility Maintenance Facility- Rent Permit Software Conversion Park Maintenance (Park Sign Replacements, Buckthorn Removal, Supplies/Materials) Springbrook Metro-INET Server Migration Street Maintenance Program/PWMP Street Projects Net changes in other GF Budget Areas Total General Fund Costs PIR Fund EDA Fund Equipment/Bldg Replacement Public Safety Total CIP Fund Costs Total General & CIP Fund Costs Effect on Levy 50,000 39,873 45,448 48,366 8,100 37,029 178,816 231,220 159,231 12,780 5,847 60,000 47,420 10,000 (30, 500) 18,052 742,866 100,000 52,000 152,000 894.866 The table below shows the original adopted budget for the General Fund compared to the final audited numbers from 2015 - 2024. As you can see, the City has performed better than the budget for all the years shown due to conservative budgeting. Please note that the 2020 actuals include revenue from the CARES Act in the amount of $459,614, and this was a one-time occurrence. The Transfers Out column shows the funds that were transferred to cover capital projects within the City. Page 9 of 11 Original Operating Transfers Net Chg in Year Budget Activity Out Fund Balance 2015 (58,305) 736,465 - 736,465 2016 (160,326) 427,521 (565,121) (137,600) 2017 (195,955) 694,505 - 694,505 2018 (237,225) 101,055 (400,000) (298,945) 2019 (186,970) 235,217 (360,000) (124,783) 2020* (121,590) 642,918 (478,000) 164,918 2021 (90,720) 337,316 (548,000) (210,684) 2022 (140,000) 298,955 (102,540) 196,415 2023 (160,760) 9,461 (171,140) (161,679) 2024 (182,070) 165,028 (50,000) 115,028 Discussion CTP Plan Staff is seeking direction from the City Council regarding the following items: • The PIR Fund has a proposed levy of $250,000 in 2026. Staff is proposing Scenario D, which would shift PMP projects and increase the levy by $50,000 starting in 2027 and annually thereafter. What changes, if any, should staff assume? • The Public Safety Capital Equipment Fund Staff is proposing an increase of $52,000 in 2026 and additional increases in subsequent years to absorb the 9 full-time staff and ensure a healthy fund balance long-term. What changes, if any, should staff assume? Tree Preservation and Landscaping Fund • Due to the strong demand and positive feedback around the 2025 Tree Trust Partnership pilot program, Tree Trust has asked the City to continue its tree sale partnership, which promotes environmental sustainability. The 2026 cost is estimated to be $6,750. Staff is seeking further direction from Council regarding its interest in continuing to partner with Tree Trust and whether funding should come from the Tree Preservation and Landscaping Fund, which is currently sitting at $31,815.50? General Fund & Preliminary LevX Staff is respectfully requesting the City Council to review the preliminary budget and provide feedback for future budget meetings. The 2026 proposed levy and public meeting date need to be set prior to the end of September 2025. Direction is needed from the City Council on the following items: • Current wage and benefit assumptions include a 3% COLA for both union and non -union staff, a 10% health insurance increase, and a 4% dental insurance increase. Should any of these assumptions be changed? • This preliminary budget does not include any significant building projects for 2026. Should a building project be added? • This preliminary budget includes the Public Works Phase 2 staffing changes starting on January 1, 2026. Should that assumption be changed? • This preliminary budget includes assumptions for the Rec on the Go programming. Should those assumptions be changed? • Are there other assumptions or changes staff should incorporate? • This preliminary budget contains a 14.8% levy increase. Is another work session needed to further discuss the preliminary levy increase? Page 10 of 11 Attachments A. Preliminary 2026-2030 CIP Budget PowerPoint Presentation B. Preliminary 2026 Levy Impact Analysis C. General Fund Budget to Actual Comparison for 2022, 2023, 2024 D. Preliminary 2026 General Fund Budget PowerPoint Presentation E. 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O O m O O O •000m � 0 N � m m 00 • in- in- in- tn- t/)- tn- 0 0 0 0 0 0 l0 rl 00 m N rl o0 o0 I, o0 o0 o0 c-I rl r1 r1 rl rl r*- Ln o0 o0 ::i- I- N m (.0 Q) ;I- r1 N N N m -Ln i./- -Ln -Ln -Ln • rl Ql Ln I� o qt rn o Ln m q;f q::i- ,zt o0 Ln I- O) N rl rl IIN to tn- -Ln 4q 4, - tn- lzt Lr) O 0) N r1 rl 00 N l0 qt 0 {n- 0 0 0 0 0 0 0 0 0 0 0 0 O N m m m 0 • l� I� � rl M rl _ • N m Ln 00 0 0 0 0 0 0 • O O O O O O . w r-lzt m m 0 • �ri oo �o ri cri ri ' � -Ln -Ln -kn 0 0 0 0 0 0 • 0 0 0 0 0 0 . 0 0 m 0 0 0 -000m 0 rH N R* m m 00 • • -tn 4n- tn- 4j)- tn- tn- 0 QD m lD Ln l6 [V 0 r--j Ln r-I O o0 cV 0 Q0 CD lD Ol N 0 o cV M O m 0 r--A lD oo O m 0 QD k.0 � zt .i m 00 00 00 00 00 m m m Q0 r- m n (.D 00 00 rl rl M k O O 00 d) rl m Q0 n 00 O ri 0 0 r- L CC O O 00 00 O M O Sri 0 4-J riI u allI 0 O 0Ul) M 00 0 0) 00 Z � LL o 0 0 0 0 0 0 N o 0 0 0 Iq� o (1)♦, = 0000LOo `fin L(j o 0 00 00 CV 0 c p co o co r` o r` LO m LO M � Lr) H Ln LO LO I` 00 c0 LO M CO N O LO LO CO N � Lo Lo O N 0) M CY) "t O .> CO r- — U5 N f` 00 0r Lf) ++ M N 0) O M"Zi- M 0) CO Q Q ti� (O N (.O co N L) (D Lf) LO O O O O O O O N U') N PI- CY) N O CO fl- M co cy) N 0) Lf) f- O I- O 00 O ui r, CO "- O O O N Lo CO cy) M 00 N 0-) q C0 00 N O i LO (0 1` 00 0) N M Iq � � � � T- CD N N N N N G) O CD CD CD CDCDCD CD CD CD >- N N N N N N N N N N co LO ICT - 0 m a� CD U a U) LU a N U C U m Q- 0 O N 0 N -x V cu (3) W LL V c 0 U M1• buo 0 LD C- U CU dA r,14 O N i m N � V s V s U O +� .� N V tao +-+ . O C6 0 U V) Q) a..r Q uo E uz _0 O N •� V) a m 0 c o C,. o m - U - M v U CU r V) Ul) N U O ._ 3 O N _ C — _0 V) O D CL v N _0 4-1 vi .� }, N D °n o V) M D v m - N Ln (B � O •dJ U •0 }, 5 E N mbn tw t N W -0-0Q D _0 cn aA lD O L •� .� Q Q vm m M cV O D E E > M +� N O .N O .`n U U Attachment E 2023 2024 7/31/2025 2025 2026 $Increase % Increase GENERAL FUND Actual Actual YTD Budget Budget (Decrease) (Decrease) REVENUES Taxes $3,963,077 $ 4,622,581 $ 4,656,049 $5,359,798 $ 6,113,686 $ 753,888 14.1% Special assessments - - - - - - N/A Licenses and permits 471,740 448,587 650,008 550,540 548,472 (2,068) -0.4% Intergovernmental 166,021 116,870 123,860 176,296 165,379 (10,917; -6.2% Charges for services 485,643 504,134 366,621 471,994 470,251 (1,743) -0.4% Fines & forfeits 24,681 27,298 13,944 17,360 24,224 6,864 39.5% Investment earnings 209,901 163,638 29,972 50,000 50,000 - 0.0% Miscellaneous 31,734 9,247 40,748 13,282 13,330 48 0.4% TOTAL REVENUES $5,352,798 $ 5,892,355 $ 5,881,204 $6,639,270 $ 7,385,343 $ 746,073 11.2% EXPENDITURES Mayor & Council $ 71,926 $ 80,035 $ 52,525 $ 93,819 $ 95,743 $ 1,924 2.1% Administration 437,233 507,785 265,235 506,835 542,986 36,151 7.1% Elections 31,056 32,141 26,750 61,750 35,906 (25,844; -41.9% Finance 161,040 163,075 136,617 220,756 235,084 14,328 6.5% TCAAP 77,657 119,702 34,437 121,920 136,220 14,300 11.7% Planning & Zoning 227,805 307,494 121,119 352,790 428,360 75,570 21.4% Government Buildings 228,815 224,822 141,863 240,932 250,213 9,281 3.9% Police 1,491,764 1,583,188 879,144 1,761,288 1,992,508 231,220 13.1% Dispatch 68,737 70,394 36,783 73,570 86,350 12,780 17.4% Fire 751,177 833,933 892,173 906,321 1,065,552 159,231 17.6% Emergency Management 8,587 5,134 3,696 9,780 9,290 (490) -5.0% Protective Inspections 383,744 331,654 157,434 373,160 395,480 22,320 6.0% Street Maintenance 682,508 716,138 356,823 960,790 967,262 6,472 0.7% Recreation 176,655 195,101 128,925 337,508 375,818 38,310 11.4% Park Maintenance 544,634 556,736 361,374 690,060 790,580 100,520 14.6% Transfers out 171,140 50,000 - 50,000 100,000 50,000 100.0% TOTAL EXPENDITURES $5,514,477 $ 5,777,329 $ 3,594,898 $6,761,279 $ 7,507,352 $ 746,073 11.0% NET CHANGE IN FUND BALANCE $ (161,67% $ 115,025 $ 2,286,306 $ (122,009] $ (122,009: $ 0 0.0% 2026 BUDGET - GENERAL FUND - SCHEDULE OF EXPENDITURES - DETAIL BY FUNCTION 2023 2024 2025 2026 $Increase % Increase Actual Actual Budget Proposed (Decrease) (Decrease) Mayor & council Personnel Expenses Supplies and Materials Other Services and Charges Administration Personnel Expenses Supplies and Materials Other Services and Charges Elections Supplies and Materials Other Services and Charges Finance Personnel Expenses Supplies and Materials Other Services and Charges TCAAP Personnel Expenses Supplies and Materials Other Services and Charges Planning & Zoning Personnel Expenses Supplies and Materials Other Services and Charges Government Buildings Personnel Expenses Supplies and Materials Other Services and Charges Police Other Services and Charges Dispatch Other Services and Charges Fire Other Services and Charges Emergency Management Personnel Expenses Supplies and Materials Other Services and Charges Protective Inspections Personnel Expenses Supplies and Materials Other Services and Charges Street Maintenance Personnel Expenses Supplies and Materials Other Services and Charges Recreation Personnel Expenses Supplies and Materials Other Services and Charges Park Maintenance Personnel Expenses $ 37,231 $ 37,139 $ 41,070 $ 41,070 $ 0.0% - 259 - - - 0.0% 34,694 42,636 52,749 54,673 1,924 3.6% $ 71,926 $ 80,035 $ 93,819 $ 95,743 $ 1,924 2.1% $ 264,777 $ 266,024 $ 318,880 $ 339,570 $ 20,690 6.5% - - - - - 0.0% 172,456 241,761 187,955 203,416 15,461 8.2% $ 437,233 $ 507,785 $ 506,835 $ 542,986 $ 36,151 7.1% $ $ $ $ $ - 0.0% 31,056 32,141 61,750 35,906 (25,844) -41.9% $ 31,056 $ 32,141 $ 61,750 $ 35,906 $ (25,844) -41.9% $ 73,619 $ 76,769 $ 106,890 $ 112,690 $ 5,800 5.4% 11,505 9,815 12,000 12,000 - 0.0% 75,916 76,491 101,866 110,394 8,528 8.4% $ 161,040 $ 163,075 $ 220,756 $ 235,084 $ 14,328 6.5% $ 39,431 $ 36,677 $ 51,920 $ 56,220 $ 4,300 8.3% - - - - - 0.0% 38,226 83,025 70,000 80,000 10,000 14.3% $ 77,657 $ 119,702 $ 121,920 $ 136,220 $ 14,300 11.7% $ 190,620 $ 228,094 $ 264,470 $ 276,790 $ 12,320 4.7% 123 - - - - 0.0% 37,062 79,400 88,320 151,570 63,250 71.6% $ 227,805 $ 307,494 $ 352,790 $ 428,360 $ 75,570 21.4% $ 38,713 $ 34,834 $ 40,090 $ 43,484 $ 3,394 8.5% 10,786 8,045 9,180 9,180 - 0.0% 179,316 181,943 191,662 197,549 5,887 3.1% $ 228,815 $ 224,822 $ 240,932 $ 250,213 $ 9,281 3.9% $ 1,491,764 $ 1,583,188 $ 1,761,288 $ 1,992,508 $ 231,220 13.1% $ 1,491,764 $ 1,583,188 $ 1,761,288 $ 1,992,508 $ 231,220 13.1% $ 68,737 $ 70,394 $ 73,570 $ 86,350 $ 12,780 17.4% $ 68,737 $ 70,394 $ 73,570 $ 86,350 $ 12,780 17.4% $ 751,177 $ 833,933 $ 906,321 $ 1,065,552 $ 159,231 17.6% $ 751,177 $ 833,933 $ 906,321 $ 1,065,552 $ 159,231 17.6% $ 5,164 $ 4,322 $ 8,130 $ 7,640 $ (490) -6.0% - - - - - 0.0% 3,423 811 1,650 1,650 0.0% $ 8,587 $ 5,134 $ 9,780 $ 9,290 $ (490) -5.0% $ 279,459 $ 281,612 $ 304,390 $ 317,020 $ 12,630 4.1% 662 1,226 1,250 1,250 - 0.0% 103,623 48,816 67,520 77,210 9,690 14.4% $ 383,744 $ 331,654 $ 373,160 $ 395,480 $ 22,320 6.0% $ 337,706 $ 363,274 $ 439,340 $ 471,342 $ 32,002 7.3% 59,540 26,243 66,000 74,000 8,000 12.1% 285,261 326,621 455,450 421,920 (33,530) -7.4% $ 682,508 $ 716,138 $ 960,790 $ 967,262 $ 6,472 0.7% $ 126,476 $ 141,167 $ 262,380 $ 297,450 $ 35,070 13.4% 15,360 17,172 22,250 22,680 430 1.9% 34,818 36,762 52,878 55,688 2,810 5.3% $ 176,655 $ 195,101 $ 337,508 $ 375,818 $ 38,310 11.4% $ 349,403 $ 379,390 $ 491,290 $ 544,390 $ 53,100 10.8% 2023 2024 2025 2026 $Increase % Increase Actual Actual Budget Proposed (Decrease) (Decrease) Supplies and Materials 77,978 56,038 51,750 69,500 17,750 34.3% Other Services and Charges 117,252 121,308 147,020 176,690 29,670 20.2% $ 544,634 $ 556,736 $ 690,060 $ 790,580 $ 100,520 14.6% Transfers Out $ 171,140 $ 50,000 $ 50,000 $ 100,000 $ 50,000 100.0% TOTAL EXPENDITURES $ 5,514,477 $ 5,777,329 $ 6,761,279 $ 7,507,352 $ 746,073 11.0% CITY OF ARDEN HILLS, MINNESOTA GENERAL GOVERNMENT SUMMARY EXPENDITURE ANALYSIS 2025 PERCENT 2023 2024 ORIGINAL 2026 OVER(UNDER) Total By Program ACTUAL ACTUAL BUDGET BUDGET 2023 BUDGET City Council $ 71,926 $ 80,035 $ 93,819 $ 95,743 2.1% City Administration 437,233 507,785 506,835 542,986 7.1 % Elections 31,056 32,141 61,750 35,906 -41.9% Finance 161,040 163,075 220,756 235,084 6.5% TCAAP 77,657 119,702 121,920 136,220 11.7% Planning & Zoning 227,805 307,494 352,790 428,360 21.4% Government Buildings 228,815 224,822 240,932 250,213 3.9% Totals 1,235,531 1,435,052 1,598,802 1,724,511 7.9% Total By Classification Personnel Services 604,961 642,860 771,400 813,604 5.5% Commodities 60,639 101,143 91,180 101,180 11.0% Contractual Services 530,501 654,373 684,302 753,507 10.1 % Capital Outlay 0 0 0 0 N/A Other Charges 0 0 0 0 N/A Totals 1,196,101 1,398,376 1,546,882 1,668,291 7.8% Staffing Full-time equivalents 4.38 4.29 5.13 5.14 N 2,000 0 1,800 N 1,600 c 1,400 r 1,200 ~ 1,000 Expenditures 800 600 400 200 0 ACTUAL ACTUAL BUDGET BUDGET 2023 2024 ORIGINAL 2026 2025 CITY OF ARDEN HILLS, MINNESOTA Function: General Government Activity: Mayor & Council 2026 BUDGET Fund # 101 Activity # 41100 Activity Scope The Mayor and City Council are responsible for the formulation of policy and the passage of laws governing the City of Arden Hills. Members participate in various committees, as well as direct staff, through the City Administrator, as to their overall goals for the City. This department provides for Mayor and Council compensation, Council meetings and work sessions, management consultants and memberships. When applicable, participation in NYFS is included in this budget, as is funding for the City Council Retreat Facilitator. Objectives 1. Adopt policies and ordinances consistent with Council's position on growth, zoning and financial strategy. 2. Continue to work on the redevelopment of the TCAAP property. Issues Creating funding sources to build reserve balances to fund future capital improvements while maintaining current City services. Budget Commentary In 2026, the Mayor and Council budget is proposed to increase by 2.1% or $1,924 due to the slight increase to the NYFS contract. 2023 2024 2025 2026 Budget Summary ACTUAL ACTUAL BUDGET BUDGET Personnel Services $ 37,231 $ 37,139 $ 41,070 $ 41,070 Commodities - 259 - - Contractual Services 34,694 42,636 52,749 54,673 Total $ 71,926 $ 80,035 $ 93,819 $ 95,743 Percent Change 11.3% 17.2% 2.1 % NYFS amount included above - 16,661 23,304 25,203 Expenditures by Classification 43% OPersonnel Services O Commodities OContractual Services 57% CITY OF ARDEN HILLS, MINNESOTA 2026 BUDGET Function: General Government Fund # 101 Activity: Administration Activity # 41300 Activity Scope City Administration provides the overall direction of the City, as determined by the City Council. The City Administrator serves as Chief Administrative Officer for the City, ensuring that laws, ordinances, and resolutions of the City Council are enforced and implemented. The Administration Department is responsible for administering Council policies, coordinating Council agendas, and providing support to other functional areas within the City. Objectives 1. Assist City Council in setting policies and procedures in accordance with Council's position. 2. Provide direction and leadership on major city projects, budget management, oversee performance evaluations and long-range planning. Issues 1. Long-range planning to maintain current City services while creating funding sources for reserves. 2. Long-range comprehensive TCAAP planning. Budget Commentary The 2026 Administration budget is increasing by 7.1 % over 2025. The increase in personnel services is due to step, COLA, and insurance benefit increases (which includes implementation of the MN Paid Leave program). The increase in contractual services is primarily due to legal fees which is based on a rolling 3-year average. 2023 2024 2025 2026 Budget Summary ACTUAL ACTUAL BUDGET BUDGET Personnel Services $ 264,777 Commodities - Contractual Services 172,456 Total $ 437,233 Percent Change $ 266,024 241,761 $ 507,785 16.1% $ 318,880 187,955 $ 506,835 (-0.2%) Full -Time Equivalent positions 2.03 1.79 2.22 Expenditures by Classification $ 339,570 203,416 $ 542,986 7.1 % 1) 00 CITY OF ARDEN HILLS, MINNESOTA 2026 BUDGET Function: General Government Fund # 101 Activity: Elections Activity # 41410 Activity Scope This department covers the cost of administering all Federal, State and Municipal elections. This includes the preparation of any and all absentee ballots, organizing the polling places, election judges, and vote tabulations. The City contracts with Ramsey County for all the required election services. Objectives Stay current on election laws. Issues Stay current on election laws. Budget Commentary The Elections budget has a -41.9% or $25,844 decrease for FY26. 2023 2024 2025 2026 Budget Summary ACTUAL ACTUAL BUDGET BUDGET Personnel Services $ - $ - $ - $ - Commodities - - - - Contractual Services 31,056 32,141 61,750 35,906 Total $ 31,056 $ 32,141 $ 61,750 $ 35,906 Percent Change 3.5% 92.1 % (41.9%) Expenditures by Classification 13Personnel Services O Commodities 13Contractual Services 100% CITY OF ARDEN HILLS, MINNESOTA 2026 BUDGET Function: General Government Fund # 101 Activity: Finance Activity # 41500 Activity Scope Conducts the financial affairs of the City in accordance with the Government Accounting Standards Board (GASB) and Generally Accepted Accounting Principles (GAAP). This includes protecting the assets of the City, the initiation of financial plans, investment and debt management, review and implementation of internal controls, and accounting for financial transactions including accounts payable, accounts receivable and payroll. Objectives 1. Continue working to refine the financial management plan for the City. 2. Continue to produce an Annual Comprehensive Financial Report (ACFR) and reports for the public (Popular Annual Finance Report - PAFR) that receive the GFOA's award for excellence in reporting. 3. Provide meaningful and timely financial reports and information to Council, Commissions and other City Departments. Issues 1. Implement improved reporting procedures to inform Council, Commissions and Departments. 2. Work with other Departments to find ways to reduce costs of City operations. 3. Analyze and implement ways to reduce transaction processing and costs. Budget Commentary This budget increased by 6.5% in 2026 or $14,328. The increase in personnel services is due to step, COLA, and insurance benefit increases. The increase in Contractual Services is due to server migration costs for the City's ERP System, Spingbrook. 2023 2024 2025 2026 Budget Summary ACTUAL ACTUAL BUDGET BUDGET Personnel Services Commodities Contractual Services Total Percent Change $ 73,619 $ 76,769 $ 106,890 $ 112,690 11,505 9,815 12,000 12,000 75,916 76,491 101,866 110,394 ZP 10 1 ,U4U Z� I 03,U / D 1� LLU, I Do ZoD,U0,+ 1.3% 35.4% 6.5% Full -Time Equivalent positions 0.58 0.59 0.77 0.77 Expenditures by Classification CITY OF ARDEN HILLS, MINNESOTA Function: General Government Activity: TCAAP 2026 BUDGET Fund # 101 Activity # 41600 Activity Scope This department was established to account for revenue and expenditure activity related to the City's comprehensive re -use planning at the Twin Cities Army Ammunition Plant (TCAAP) site. Objectives 1. Coordination of TCAAP redevelopment planning activities while continuing to meet the needs of the City of Arden Hills. 2. Work with Ramsey County through the Joint Development Authority (JDA). Issues 1. Economic conditions. 2. Coordinating with multiple entities/players. Budget Commentary Ramsey County purchased the property and established a Joint Development Authority (JDA) with the City. Placeholders for consultant costs have been included, and staff time has been allocated for City Administration, Community Development, and Public Works as they act as the City's support staff to this Authority. The 2026 budget shows an increase of 11.7% or $14,300. Budaet Summary Personnel Services Commodities Contractual Services Total Percent Change Full -Time Equivalent positions Expenditures by Classification 2023 2024 2025 2026 ACTUAL ACTUAL BUDGET BUDGET $ 39,431 $ 36,677 $ 51,920 $ 56,220 38,226 83,025 70,000 80,000 $ 77,657 $ 119,702 $ 121,920 $ 136,220 54.1 % 1.9% 11.7% OPersonnel Services o Commodities 41% 0Contractual Services BMW 59% CITY OF ARDEN HILLS, MINNESOTA 2026 BUDGET Function: General Government Fund # 101 Activity: Planning & Zoning Activity # 41910 Activity Scope Responsible for all planning and zoning related functions of the City. Activities administered by this department include requests for variances, subdivisions, re -zonings, zoning code amendments, signs, conditional use permits, compliance with City Ordinances and other land use issues. The Planners work closely with Protective Inspections, Code Enforcement, and Community Development. The Planning Commission, consisting of seven members appointed annually by the City Council, meets monthly to review the above requests and to make recommendations to the City Council in an advisory capacity. Objectives 1. Continue to work on Rental Housing registrations. 2. Continue improvements of the City's planning process. Issues 1. Rental Housing registrations. 2. Refine Building Permit process. 3. Research and refine an Administrative Fines process. Budget Commentary The budget for 2026 is an increase of 21.4% over the 2025 budget. Contractual services includes $60,000 for the City's Permit Software conversion. Budaet Summary Personnel Services Commodities Contractual Services Total Percent Change Full -Time Equivalent positions Expenditures by Classification 2023 ACTUAL $ 190,620 123 37,062 2024 ACTUAL $ 228,094 79,400 2025 BUDGET $ 264,470 88,320 2026 BUDGET $ 276,790 151,570 w w w w 35.0% 14.7% 21.4% 35% OPersonnel Services OCommodities OContractual Services 65% CITY OF ARDEN HILLS, MINNESOTA Function: General Government Activity: Government Buildings 2026 BUDGET Fund # 101 Activity # 41940 Activity Scope This department captures all of the operation/maintenance related costs for the City Hall and Government Building facilities. The City entered into a contract with Ramsey County for a joint maintenance facility located just west of City Hall off County Road 96 on Paul Kirkwold Drive. The new facility was completed and occupied as of October 2004. 45% of the City's portion of the Ramsey County maintenance facility is charged to this budget. Objectives Maintain a reputable facility to house meetings and staff. Issues Normal maintenance and repair issues as the building (City Hall) has now been in operation since 2002. Budget Commentary The 2026 budget is an increase of 3.9% from the previous year's budget primarily due to anticipated rent increase for the Public Works maintenance facility. 2023 2024 2025 2026 Budget Summary ACTUAL ACTUAL BUDGET BUDGET Personnel Services $ 38,713 $ 34,834 $ 40,090 $ 43,484 Commodities 10,786 8,045 9,180 9,180 Contractual Services 179,316 181,943 191,662 197,549 Total $ 228,815 $ 224,822 $ 240,932 $ 250,213 Percent Change (-1.7%) 7.2% 3.9% Full -Time Equivalent positions 0.27 0.25 0.26 0.27 Expenditures by Classification 17% 4% OPersonnel Services o Commodities 0Contractual Services r 79% CITY OF ARDEN HILLS, MINNESOTA PUBLIC SAFETY SUMMARY EXPENDITURE ANALYSIS 2025 PERCENT 2023 2024 ORIGINAL 2026 OVER(UNDER) Total By Program ACTUAL ACTUAL BUDGET BUDGET 2023 BUDGET Police $ 1,491,764 $ 1,583,188 $ 1,761,288 $ 1,992,508 13.1 % Dispatch 68,737 70,394 73,570 86,350 17.4% Fire 751,177 833,933 906,321 1,065,552 17.6% Emergency Management 8,587 5,134 9,780 9,290 -5.0% Protective Inspections 383,744 331,654 373,160 395,480 6.0% Totals 2,704,009 2,824,302 3,124,119 3,549,180 13.6% Total By Classification Personnel Services 662 1,226 1,250 1,250 0.0% Commodities 1,598,810 1,632,815 1,830,458 2,071,368 13.2% Contractual Services 819,914 904,327 979,891 1,151,902 17.6% Capital Outlay 0 0 0 0 N/A Other Charges 0 0 0 0 N/A Totals 2,419,387 2,538,368 2,811,599 3,224,520 14.77/6 Staffing Full-time equivalents 0.00 0.00 0.00 0.00 4,000 c 3,500 m 3,000 0 r 2,500 2,000 1,500 Expenditures 1,000 500 0 dH1 11HI ACTUAL ACTUAL BUDGET BUDGET 2023 2024 ORIGINAL 2026 2025 CITY OF ARDEN HILLS, MINNESOTA 2026 BUDGET Function: Public Safety Fund # 101 Activity: Police Activity # 42100 Activity Scope Law Enforcement services for Arden Hills are provided on a contractual basis with the Ramsey County Sheriff's Department. Animal control services are included in this budget. Obiectives Continue contracting for law enforcement and animal control services. Issues 1. Resident concerns over police coverage and visibility. 2. Response times. Budget Commentary Arden Hills' portion of the Ramsey County Sheriff's Contracting Communities 2026 budget increased 13.1 % or $231,220 over 2025. Animal control costs and boarding are included within this budget. 2023 2024 2025 2026 BudaetSummary ACTUAL ACTUAL BUDGET BUDGET Personnel Services Commodities Contractual Services Total Percent Change Expenditures by Classification 1,491, 764 1,583.188 1,761.288 1,992,508 100% 6.1% 11.2% 13.1% OPersonnel Services o Commodities oContractual Services CITY OF ARDEN HILLS, MINNESOTA 2026 BUDGET Function: Public Safety Fund # 101 Activity: Dispatch Activity # 42150 Activity Scope Emergency dispatch services are provided by Ramsey County. Objectives Continue contracting dispatch services. Issues Continue to maintain service levels at a reasonable cost. Budget Commentary Arden Hills' portion of the Ramsey County 911 Dispatch Department operating budget increased by 17.4%. Budaet Summary Personnel Services Commodities Contractual Services Total Percent Change Expenditures by Classification 2023 2024 2025 2026 ACTUAL ACTUAL BUDGET BUDGET 68,737 70,394 73,570 86,350 $ 68,737 $ 70,394 $ 73,570 $ 86,350 2.4% 4.5% 17.4% 100% oPersonnel Services o Commodities oContractual Services CITY OF ARDEN HILLS, MINNESOTA 2026 BUDGET Function: Public Safety Fund # 101 Activity: Fire Activity # 42200 Activity Scope Fire protection for Arden Hills is provided by the Lake Johanna Fire Department on a contractual basis. Lake Johanna Fire Department presently provides services to the cities of Arden Hills, Shoreview, and North Oaks. Arden Hills pays a percentage of operating and capital costs based on a formula approved by the Lake Johanna Fire Department and Arden Hills City Council. Objectives Continue contracting for fire protection services. Issues Continue to maintain service levels at a reasonable cost. Budget Commentary Arden Hills' portion of the Lake Johanna Fire Department operating budget increased 17.6%. This budget reflects increases to operating costs. Budaet Summary Personnel Services Commodities Contractual Services Total Percent Change Expenditures by Classification 2023 751,177 100% 2024 833,933 2025 906,321 2026 1,065,552 11.0% 8.7% 17.6% 13Personnel Services O Commodities 13Contractual Services CITY OF ARDEN HILLS, MINNESOTA 2026 BUDGET Function: Public Safety Fund # 101 Activity: Emergency Management Activity # 42300 Activity Scope Emergency Management coordination for the City is required by the Federal Government. This department works closely with Ramsey County Department of Homeland Security, as well as the Ramsey County Sheriff and Lake Johanna Fire Department. The City contracts with a consultant to provide these services. Objectives 1. Update City's Emergency Response Policy and Procedures. 2. Train staff in emergency management procedures. Issues Coordinate with Ramsey County's emergency response procedures and policies. Budget Commentary The 2026 budget is a decrease of 5.0% from the 2025 budget or $9,290. 2023 2024 2025 2026 Budget Summary ACTUAL ACTUAL BUDGET BUDGET Personnel Services $ 5,164 $ 4,322 $ 8,130 $ 7,640 Commodities - - - - Contractual Services 3,423 811 1,650 1,650 Total $ 8,587 $ 5,134 $ 9,780 $ 9,290 Percent Change (40.2%) 90.5% (-5.0%) Full -Time Equivalent positions 0.02 0.01 0.04 0.04 Expenditures by Classification 18% 13Personnel Services O Commodities 13Contractual Services CITY OF ARDEN HILLS, MINNESOTA 2026 BUDGET Function: Public Safety Fund # 101 Activity: Protective Inspections Activity # 42400 Activity Scope This department is responsible for all building construction, plumbing, sewer, water and mechanical inspections within the City. Electrical inspections are contracted with an independent inspection firm. This department is also responsible for enforcement of the Zoning Code and other sections of the City Code of Ordinances. Objectives 1. Continue implementation of the building codes. 2. Continue to work on Building Permit software to produce Council reports Issues 1. Managing and prioritizing department workloads. 2. Keep up with rental license inspections of investor owned residential properties. 3. Continue implementation and design of new Building Permit software and reports. Budget Commentary The 2026 operating budget is an increase of 6.0% or $22,320 from the previous year's budget, driven by personnel, technology, and credit card fee allocations. Budaet Summary Personnel Services Commodities Contractual Services Total Percent Change 2023 2024 2025 2026 $ 279,459 $ 281,612 $ 304,390 $ 317,020 662 1,226 1,250 1,250 103,623 48,816 67,520 77,210 (-13.6%) 12.5% 6.0% Full -Time Equivalent positions 2.50 2.58 2.74 2.74 Expenditures by Classification CITY OF ARDEN HILLS, MINNESOTA PUBLIC WORKS SUMMARY EXPENDITURE ANALYSIS 2025 PERCENT 2023 2024 ORIGINAL 2026 OVER(UNDER) Total By Program ACTUAL ACTUAL BUDGET BUDGET 2023 BUDGET Streets $ 682,508 $ 716,138 $ 960,790 $ 967,262 0.7% Totals 682,508 716,138 960,790 967,262 0.7% Total By Classification Personnel Services 337,706 363,274 439,340 471,342 7.3% Commodities 59,540 26,243 66,000 74,000 12.1 % Contractual Services 285,261 326,621 455,450 421,920 -7.4% Capital Outlay 0 0 0 0 N/A Other Charges 0 0 0 0 N/A Totals 682,508 716,138 960,790 967,262 0.7% Staffing Full-time equivalents 2.40 2.45 2.61 2.79 N 1,200 1,000 3 L 800 r Expenditures 600 400 200 0 H,_ ACTUAL ACTUAL BUDGET BUDGET 2023 2024 ORIGINAL 2026 2025 CITY OF ARDEN HILLS, MINNESOTA 2026 BUDGET Function: Public Works Fund # 101 Activity: Street Maintenance Activity # 43100 Activity Scope This department is responsible for maintaining City streets, including snowplowing, minor street repair, street signs, and street sweeping. Objectives 1. Maintain street infrastructure utilizing all available techniques including crack sealing, seal coating, patching and overlays. 2. Recommend a cost effective program for reconstructing/reclaiming street surfaces when maintenance techniques no longer provide the desired results. 3. Maintain and update equipment and vehicles. Issues 1. Implement a capital improvement program for City infrastructure. 2. Balance the public works department needs with available funds. 3. Aging equipment. 4. Increased safety regulation for equipment and vehicles. Budget Commentary The 2026 operating budget is an increase of $6,472 from the previous year's budget. Personnel service increases are due to step, COLA and insurance benefit increases, in addition to a 1.0 FTE PW Maintenance staff increase. Adjustments were made to contractual services for Street Maintenance (sealcoating/resurfacing). 2023 2024 2025 2026 Budget Summary ACTUAL ACTUAL BUDGET BUDGET Personnel Services $ 337,706 $ 363,274 $ 439,340 $ 471,342 Commodities 59,540 26,243 66,000 74,000 Contractual Services 285,261 326,621 455,450 421,920 Total $ 682,508 $ 716,138 $ 960,790 $ 967,262 Percent Change 4.9% 34.2% 0.7% Full -Time Equivalent positions 2.40 2.45 2.61 2.79 Expenditures by Classification 43% 49% OPersonnel Services OCommodities i ■ OContractual Services 8% CITY OF ARDEN HILLS, MINNESOTA PARKS & RECREATION SUMMARY EXPENDITURE ANALYSIS 2025 PERCENT 2023 2024 ORIGINAL 2026 OVER(UNDER) Total By Program ACTUAL ACTUAL BUDGET BUDGET 2023 BUDGET Recreation $ 176,655 $ 195,101 $ 337,508 $ 375,818 11.4% Parks 544,634 556,736 690,060 790,580 14.6% Totals 721,288 751,837 1,027,568 1,166,398 13.5% Total By Classification Personnel Services 364,763 396,562 513,540 567,070 10.4% Commodities 112,797 92,799 104,628 125,188 19.7% Contractual Services 117,252 121,308 147,020 176,690 20.2% Capital Outlay 0 0 0 0 N/A Other Charges 0 0 0 0 N/A Totals 594,812 610,669 765,188 868,948 13.6% Staffing Full-time equivalents 2.98 3.01 3.43 3.73 N 1,400 1,200 c 1,000 800 Expenditures 600 400 200 0 ACTUAL ACTUAL BUDGET BUDGET 2023 2024 ORIGINAL 2026 2025 CITY OF ARDEN HILLS, MINNESOTA 2026 BUDGET Function: Parks and Recreation Fund # 101 Activity: Recreation Activity # 45120 Activity Scope This department provides all recreational activities to residents of Arden Hills, as well as residents from neighboring communities. Obiectives To provide recreational activities to residents of Arden Hills. Issues 1. Develop senior programming. 2. Budget constraints. Budget Commentary The 2026 operating budget is an increase of 11.4% from the previous year's budget. This is mainly due to step, COLA and insurance benefit increases, and fte allocation for the full year cost for the Parks & Recreation Manager position. 2023 2024 2025 2026 Budget Summary ACTUAL ACTUAL BUDGET BUDGET Personnel Services $ 126,476 $ 141,167 $ 262,380 $ 297,450 Commodities 15,360 17,172 22,250 22,680 Contractual Services 34,818 36,762 52,878 55,688 Total $ 176,655 $ 195,101 $ 337,508 $ 375,818 Percent Change 10.4% 73.0% 11.4% Full -Time Equivalent positions 1.26 1.10 1.79 1.99 % of costs covered by revenue 37.2% 32.5% 21.4% 18.7% Expenditures by Classification 15% OPersonnel Services 6% o Commodities 0Contractual Services 79% CITY OF ARDEN HILLS, MINNESOTA Function: Parks and Recreation Activity: Park Maintenance 2026 BUDGET Fund # 101 Activity # 45200 Activity Scope Responsible for maintenance of City parks and trails as well as administration of the diseased tree/forestry program. This includes maintaining and improving playground and picnic facilities, fertilizing and mowing of grass, maintaining athletic fields, flooding and maintenance of outdoor ice rinks, snow and ice removal, and tree preservation within the parks system of the City. These assets of the City are extensively used by the residents, and improvements must be made to uphold the safety, functionality and beauty the City represents. Objectives 1. Continue pathway maintenance. 2. Continue implementing City's Comprehensive Park and Trails plan. Issues 1. Other maintenance concerns coming up and not allowing completion of existing projects. 2. Budget constraints for future and existing projects. Budget Commentary The 2026 operating budget is an increase of 14.6% from the previous year's budget. This is mainly due to allocation, step, COLA, temp wages, insurance benefit increases, and fte allocation for the full year cost for the Parks & Recreation Manager position. Budaet Summary Personnel Services Commodities Contractual Services Total Percent Change Full -Time Equivalent positions Expenditures by Classification 2023 ACTUAL $ 349,403 77,978 117,252 2024 ACTUAL $ 379,390 56,038 121,308 2025 BUDGET $ 491,290 51,750 147,020 2026 BUDGET $ 544,390 69,500 176,690 w w w w 2.2% 23.9% 14.6% 2.98 3.01 3.43 3.73 OPersonnel Services 22% O Commodities OContractual Services 9% 69% CITY OF ARDEN HILLS, MINNESOTA MISCELLANEOUS SUMMARY EXPENDITURE ANALYSIS 2025 PERCENT 2023 2024 ORIGINAL 2026 OVER(UNDER) Total By Program ACTUAL ACTUAL BUDGET BUDGET 2023 BUDGET Unallocated $ 171,140 $ 50,000 $ 50,000 $ 100,000 100.0% Totals 171,140 50,000 50,000 100,000 100.0% Total By Classification Personnel Services - - - - N/A Commodities - - - - N/A Contractual Services - - - - N/A Capital Outlay - - - - N/A Other Charges 171,140 50,000 50,000 100,000 100.0% Totals 171,140 50,000 50,000 100,000 100.0% Staffing Full-time equivalents 0.00 0.00 0.00 0.00 N 200 r 3 Expenditures F 100 0 ACTUAL ACTUAL BUDGET BUDGET 2023 2024 ORIGINAL 2026 2025 CITY OF ARDEN HILLS, MINNESOTA Function: Unallocated Activity: Transfers 2026 BUDGET Fund # 101 Activity # 49300 Activity Scope The transfers to other funds budget is utilized to account for the transfer of general fund revenues to other funds within the City financial structure. Objectives 1. To build reserves for capital equipment replacement. 2. To subsidize infrastructure improvements. Issues Budget constraints Budget Commentary This budget is used to account for transfers out of the General Fund to other funds of the City. $102,540 and $171,140 was transferred to the PIR fund in 2022 and 2023 respectively. Both the 2024 and 2025 budgets included a transfer to the Cable Fund of $50,000. The 2026 budget includes a transfer to the Cable Fund of $100, 000. 2023 2024 2025 2026 Budget Summary ACTUAL ACTUAL BUDGET BUDGET Personnel Services $ - $ - $ - $ - Commodities - - - - Contractual Services - - - - Other Charges 171,140 50,000 50,000 100,000 Total $ 171,140 $ 50,000 $ 50,000 $ 100,000 Percent Change (-70.8%) 0.0% 100.0% Expenditures by Classification 13Personnel Services o Commodities OContractual Services oOther Charges AGENDA ITEM - 3C '!Tt -AII��EN_ HILLS MEMORANDUM DATE: August 25, 2025 TO: Honorable Mayor and City Councilmembers FROM: Jessica Jagoe, City Administrator SUBJECT: Agenda Planning Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Council Should Consider Council should discuss its next Work Session agenda. Background Per Council's adopted policy on agenda setting, please find the proposed agenda below for the upcoming meeting. September 81h Work Session • State of the City Update • 2026 Operating Budget Discussion • Use of City Logo Policy Discussion • Twin Cities Gateway Discussion • Agenda Planning (time sensitive) September 22nd Work Session • Affordable Housing Policy Discussion • Accessory Dwelling Unit Discussion • Agenda Planning (time sensitive) Attachment A is the list of topics that have yet to be discussed by Council and the 2025 ranking of priority topics. Staff will begin to work the higher priority items into upcoming Work Sessions sooner while putting the lower priority items to later discussions. Please note, this does not reflect all items at Work Sessions as Staff will have necessary items for discussion, such as, budget discussions, concept plan reviews, or Public Works projects that need timely direction. Council may want to discuss if any items need to be added to this list for future discussion or Page 1 of 2 assign a future meeting for some of these items. This would need to be done by a majority consensus of Council. Below is a running list of things Staff brings forward to Work Session annually, in recent years, we have shifted away from bringing some items forward unless needed, such as, the Pavement Management Update from Public Works. Note, these timelines may shift year to year. Most items discussed at Work Sessions are one-off items that may require multiple meetings but are usually not reoccurring. • January o Legislative priorities • February o None • March o Initial guidance on next year's Public Works projects • April o None • May o None • June o Follow up on next year's Public Works projects • July o Capital improvement planning • August o Operating budgets • September o Operating budget and levy discussion • October o State of the City (if planned for early following year) • November o City-wide budget and fee schedule o Follow up on next year's Public Works projects • December o Committee and commission appointments Budget Impact N/A e ttarhmnnt Attachment A: Council Priorities Attachment B: Agenda Setting Policy Page 2 of 2 Topic for Consideration Likely Responsible Department Total Average Majority Next Steps Short-term Rental Ordinance CD/Admin 15 3.00 ŽƵŶĐŝůt^ Rental Licensing Program CD/Admin 15 3.00 ŽƵŶĐŝůt^ Accessory Dwelling Units CD 12 2.40 ŽƵŶĐŝůt^ Funding for Lake Johanna Boulevard Trail PW/Fin 9 1.80 ŽƵŶĐŝůt^ EDA Membership Discussion CD/Admin 9 1.80 ŽƵŶĐŝůt^ Climate Action Plan Admin 9 1.80 ŽƵŶĐŝůt^ Code of Conduct Admin 8 1.60 ŽƵŶĐŝůt^ Encroachment Discussion (2025)/Adopt A Spot PW 8 1.60 ^ƚĂĨĨZĞĐŽŵŵĞŶĚĂƚŝŽŶ Volunteer Recognition (to Personnel first) Admin 8 1.60 ^ƚĂĨĨZĞĐŽŵŵĞŶĚĂƚŝŽŶ Cannabis Discussion CD/Admin 8 1.60 ŽƵŶĐŝůt^ Committee Commission Goal Setting Admin 7 1.40 ^ƚĂĨĨZĞĐŽŵŵĞŶĚĂƚŝŽŶ Energy Audit Admin 7 1.40 ^ƚĂĨĨZĞĐŽŵŵĞŶĚĂƚŝŽŶ January - March Meeting Schedule Admin 7 1.40 ^ƚĂĨĨZĞĐŽŵŵĞŶĚĂƚŝŽŶ Temporary Goats/Buckthorn Admin 7 1.40 ^ƚĂĨĨZĞĐŽŵŵĞŶĚĂƚŝŽŶ Buy Nothing Day/Clean Up Day Admin 6 1.20 ^ƚĂĨĨZĞĐŽŵŵĞŶĚĂƚŝŽŶ Community Survey Admin 6 1.20 ŽƵŶĐŝůt^ Committee/Commission Liaison Role Policy Admin 5 1.00 ŽƵŶĐŝůt^ EV Fleet Analysis PW 5 1.00 ^ƚĂĨĨZĞĐŽŵŵĞŶĚĂƚŝŽŶ Committee/Commission Membership Admin 4 0.80 ^ƚĂĨĨZĞĐŽŵŵĞŶĚĂƚŝŽŶ Approved Policy Discussion Admin 4 0.80 ^ƚĂĨĨZĞĐŽŵŵĞŶĚĂƚŝŽŶ Use of City Logo Policy Admin Scheduled 9/8 ^ƚĂĨĨZĞĐŽŵŵĞŶĚĂƚŝŽŶ Attachment A Attachment B It "ENILLS CITY OF ARDEN HILLS Agenda Setting Policy The purpose of this policy is to establish a method for agenda setting that allows for Council to review and have control over its agendas and decide as a Council how it wants items for consideration to be brought forward. For regular worksession agendas: • Prior to concluding each regularly scheduled worksession, the City Council shall review its next regularly scheduled worksession agenda and direct Staff on any changes. • Should an individual Councilmember want to raise an item for discussion at the next meeting or in the future, they would do so during this review period. The item would need at least one other Councilmember to agree to having the item considered for future discussion, and then Council, by majority, would direct to have it placed on a future agenda or not. Staff will have flexibility to add or remove items to the worksession as needed to maintain operational efficacy. For regular City Council meeting agendas: • Agendas will be largely Staff driven based on approvals needed for normal operations. • Items coming from the City Council shall first be discussed at a worksession and can direct Staff at said worksession to bring items forward for formal approval if needed. • In rare instances, if a Councilmember brings forward an item that needs approval prior to going to a worksession, they may request the City Administrator add the item to the agenda. The City Administrator shall have the discretion to determine if the issue should be added or not, but Councilmembers will make every effort to having the item first discussed at a worksession. Special meetings and emergency meetings: • Special meetings and emergency meetings may still be called at the discretion of the Mayor or any two Councilmembers, and the members calling the meeting shall set the agenda.