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HomeMy WebLinkAbout06-08-26-RMayor: David Grant Councilmembers: Brenda Holden Emily Rousseau Tena Monson Kurt Weber City Council Agenda June 8, 2026 7:00 p.m. City Hall Address: 1245 W Highway 96 Arden Hills MN 55112 Phone: 651-792-7800 Website: www.cityofardenhills.org 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.orcl/320/Watch- City- Meetings Some Councilmembers may be participating in this meeting by interactive technology/remotely. This meeting will be streamed live on local Cable Channel 16 and available for playback on our website. CALL TO ORDER 1. APPROVAL OF AGENDA 2. TCAAP/Rice Creek Commons Update Jessica Jagoe, City Administrator 3. 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. 4. RESPONSE TO PUBLIC INQUIRIES 5. PUBLIC PRESENTATIONS 5.A. 2025 Financial Statements Aaron Nielsen, LB Carlson Documents: MEMO.PDF ATTACHMENT A.PDF ATTACHMENT B.PDF ATTACHMENT C.PDF ATTACHMENT D.PDF 6. STAFF COMMENTS 6.A. Transportation Update David Swearingen, Public Works Director/City Engineer Documents: MEMO.PDF 7. APPROVAL OF MINUTES 7.A. May 11, 2026 City Council Work Session Documents: 05-11-26-WS.PDF 7.B. May 11, 2026 Regular City Council Documents: 05-11-26-R.PDF 7.C. May 26, 2026 City Council Work Session Documents: 05-26-26-WS.PDF 7.D. May 26, 2026 Regular City Council Documents: 05-26-26-R.PDF 8. CONSENT CALENDAR Those items listed under the Consent Calendar are considered to be routine by the City Council and will be enacted by one motion under a Consent Calendar format. There will be no separate discussion of these items, unless a Councilmember so requests, in which event, the item will be removed from the general order of business and considered separately in its normal sequence on the agenda. 8.A. Motion To Approve Claims & Payroll Jessica Jagoe, City Administrator Pang Silseth, Accounting Analyst Documents: MEMO.PDF 8.B. Motion To Approve 2025 City Financial Statements And Audit Jessica Jagoe, City Administrator Documents: MEMO.PDF 8.C. Motion To Approve Lake Johanna Fire Department Temporary Funding For New Headquarters Construction Jessica Jagoe, City Administrator Documents: MEMO.PDF ATTACHMENT A.PDF ATTACHMENT B.PDF 8.D. Motion To Approve Ordinance 2026-010 Amending 2026 Fee Schedule And Authorizing Publication Of Summary Ordinance Julie Hanson, Assistant to the City Administrator/City Clerk Documents: MEMO.PDF ATTACHMENT A.PDF ATTACHMENT B.PDF 8.E. Motion To Approve Resolution 2026-028 Declaring Costs To Be Assessed And Ordering Preparation Of Proposed Assessments And Calling For Hearing On Proposed Assessments — Lexington Avenue And Target Road Traffic Signal System Improvements David Swearingen, Public Works Director/City Engineer Documents: MEMO.PDF ATTACHMENT A.PDF ATTACHMENT B.PDF 8.F. Motion To Approve Professional Services Agreement With Gayle Bauman Jessica Jagoe, City Administrator Documents: MEMO.PDF ATTACHMENT A.PDF 8.G. Motion To Approve Recruitment Of Park And Recreation Manager Jessica Jagoe, City Administrator Documents: MEMO.PDF ATTACHMENT A.PDF 8.H. Motion To Approve Professional Services Agreement With Bolton And Menk, Inc. - 2027 Park Improvements Project David Swearingen, Public Works Director/City Engineer Documents: MEMO.PDF ATTACHMENT A.PDF 9. PULLED CONSENT ITEMS Those items that are pulled from the Consent Calendar will be removed from the general order of business and considered separately in its normal sequence on the agenda. 10. PUBLIC HEARINGS 11. NEW BUSINESS 11.A. Ordinance 2026-011 Amending Chapter 2, Section 210, Subsection 210.03 - Council Meetings Julie Hanson, Assistant to the City Administrator/City Clerk Documents: MEMO.PDF ATTACHMENT A.PDF 12. UNFINISHED BUSINESS 13. COUNCIL/STAFF COMMENTS ADJOURN PUBLIC PRESENTATION - 5A -AR�QEN HILLS MEMORANDUM DATE: June 8, 2026 TO: Honorable Mayor and City Councilmembers Jessica Jagoe, City Administrator FROM: Joua Yang, Finance Director SUBJECT: 2025 City Financial Statements Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Background/Discussion The City's auditor, Aaron Nielsen from LB Carlson, LLP will be present at the June 8, 2026 City Council meeting to give an overview and answer questions. The auditors have issued an unmodified ("clean") opinion on the City's financial statements for the year ended December 31, 2025. The total general fund balance at December 31, 2025, was $4,222,107, with $4,051,711 in unassigned balance; the new balance represents an increase in the General Fund balance of $901,344. The ending unassigned General Fund balance makes up approximately 55.8 percent of next year's budgeted expenditures. The City's total net position increased by $3,028,720. The combined ending fund balances for governmental funds was $11,631,473; the combined ending unrestricted net position for the enterprise funds was $6,382,876, and internal service funds were $213,733. We have completed the report in the form prescribed by the Government Finance Officers Association of the United States and Canada (GFOA) for their Certificate of Achievement for Excellence in Financial Reporting. In order to qualify for this, the report has to be published in an easily readable and efficiently organized Annual Comprehensive Financial Report (ACFR) that satisfies both accounting principles generally accepted in the United States of America and applicable legal requirements. As a note, the Auditing Standards are constantly increasing and changing. With these changes, you may see increased findings. This does not mean that the City has done anything wrong compared to previous years, only that the reporting requirements have become much stricter. Similar to prior years, one finding was noted in the report related to Segregation of Duties. This finding was downgraded in 2020 from a material weakness to a significant deficiency due to improvements made in the internal controls over financial reporting. Staff is pleased with the outcome of the audit. Attachments A. PowerPoint presentation B. Management Report C. Annual Comprehensive Financial Report D. 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We have organized this report into the following sections: • Audit Summary • Governmental Funds Overview • General Fund Overview • Enterprise Funds Overview • Government -Wide Financial Statements • Accounting and Auditing Updates We would be pleased to further discuss any of the information contained in this report or any other concerns that you would like us to address. We would also like to express our thanks for the courtesy and assistance extended to us during the course of our audit. The purpose of this report is solely to provide those charged with governance of the City, management, and those who have responsibility for oversight of the financial reporting process comments resulting from our audit process and information relevant to city finances in Minnesota. Accordingly, this report is not suitable for any other purpose. Respectfully submitted, LB CARLSON, LLP Minneapolis, Minnesota May 26, 2026 THIS PAGE INTENTIONALLY LEFT BLANK AUDIT SUMMARY The following is a summary of our audit work, key conclusions, and other information that we consider important or that is required to be communicated to the City Council, administration, or those charged with governance of the City. OUR RESPONSIBILITY UNDER AUDITING STANDARDS GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA AND GOVERNMENTAUDITING STANDARDS We have audited the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City as of and for the year ended December 31, 2025. Professional standards require that we provide you with information about our responsibilities under auditing standards generally accepted in the United States of America and Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information to you verbally and in our audit engagement letter. Professional standards also require that we communicate the following information related to our audit. PLANNED SCOPE AND TIMING OF THE AUDIT We performed the audit according to the planned scope and timing previously discussed and coordinated in order to obtain sufficient audit evidence and complete an effective audit. AUDIT OPINIONS AND FINDINGS Based on our audit of the City's financial statements for the year ended December 31, 2025: • We have issued unmodified opinions on the City's basic financial statements. • We reported one matter involving the City's internal control over financial reporting that we consider to be a significant deficiency, as detailed in the Special Purpose Audit Reports. Due to the limited size of the City's office staff, the City has limited segregation of duties in certain areas. • The results of our testing disclosed no instances of noncompliance required to be reported under Government Auditing Standards. • We reported no findings based on our testing of the City's compliance with Minnesota laws and regulations. FUND BALANCE DEFICITS As reported in the City's Annual Comprehensive Financial Report (ACFR), the Cable Special Revenue Fund and the EDA TIF District No. 5 Special Revenue Fund had year-end deficit fund balances of $35,261 and $28,519, respectively. Management has disclosed that these deficits will be eliminated with future contributions, grants, and internal fund transfers, if needed. -1- OTHER OBSERVATIONS AND RECOMMENDATIONS Internal Controls Over Vendors A relatively common method of attempting to defraud local governments involves inducing them to pay claims from fictitious vendors for goods or services that were never provided. Strong safeguards over adding new vendors or making changes to existing vendors within the government's accounts payable system is an important control to mitigate this risk. Some considerations in this area include: • Limiting the number of employees with access to add or alter vendor records within the accounts payable system, • Requiring vendor additions or changes to be reviewed and approved by supervisory personnel, preferably one not directly involved in processing accounts payable, • Verifying the legitimacy of vendors by obtaining a W-9 or other means, • Verifying any changes to vendor address or banking information prior to processing payments, and • Periodically reviewing the vendor listing to remove inactive vendors from the system. Uniform Guidance Revisions Although the City did not earn enough federal funding to require a Single Audit of its expenditures of federal awards this year, if the City receives any federal funding it is obligated to maintain a comprehensive system of internal controls over federal grant compliance that is up to date with current requirements. The U.S. Office of Management and Budget issued a revision to Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) in 2024, aiming to streamline grant management and reduce grantor agency and recipient burden. The revised guidance is effective for new federal grant entitlements awarded on or after October 1, 2024. The revision includes a number of significant changes to the federal Single Audit process, including: an increase in dollar threshold for requiring a Single Audit from $750,000 to $1,000,000; changes to the thresholds and process used for determining major programs; an increase in the threshold for the disposition of equipment and remitting unused supplies from $5,000 to $10,000; and an increase in the federal de minimis indirect cost rate from 10 percent to 15 percent. Key changes to written policy requirements for recipients include: enhancement of cybersecurity controls, inclusion of veteran -owned businesses to the group of entities for procurement preference, and a broadened scope for reporting of mandatory disclosures. We recommend the City review its internal control policies to ensure compliance with current guidance. SIGNIFICANT ACCOUNTING POLICIES Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 of the notes to basic financial statements. No new accounting policies were adopted, and the application of existing policies was not changed during the year. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. -2- ACCOUNTING ESTIMATES AND MANAGEMENT JUDGMENTS Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were: • Depreciation — Management's estimates of depreciation expense are based on the estimated useful lives of the assets. • Pension Benefits — The City has recorded liabilities and activity for pension benefits. Actuarial estimates of the net pension balances are calculated using actuarial methodologies described in Governmental Accounting Standards Board Statement No. 68. The actuarial calculations include significant assumptions, including projected changes, investment returns, retirement ages, proportionate share, and employee turnover. Compensated Absences — Management's estimate is based on current rates of pay, unused compensated absence balances, and the likelihood compensated absences will be paid out over the course of employment or at termination. We evaluated the key factors and assumptions used by management to develop these accounting estimates in determining that they are reasonable in relation to the basic financial statements taken as a whole. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The disclosures included in the notes to the basic financial statements related to pension benefits are particularly sensitive, due to the materiality of the liabilities, and the large and complex estimates involved in determining the disclosures. The financial statement disclosures are neutral, consistent, and clear. DIFFICULTIES ENCOUNTERED IN PERFORMING THE AUDIT We encountered no significant difficulties in dealing with management in performing and completing our audit. CORRECTED AND UNCORRECTED MISSTATEMENTS Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit's financial statements taken as a whole. DISAGREEMENTS WITH MANAGEMENT For purposes of this report, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. -3- MANAGEMENT REPRESENTATIONS We have requested certain representations from management that are included in the management representation letter dated May 26, 2026. MANAGEMENT CONSULTATIONS WITH OTHER INDEPENDENT ACCOUNTANTS In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the City's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. OTHER AUDIT FINDINGS OR ISSUES We generally discuss a variety of matters, including the application of accounting principles and auditing standards with management each year prior to retention as the City's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. OTHER MATTERS We applied certain limited procedures to the management's discussion and analysis and the required supplementary information (RSI) that supplement the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the combining and individual fund statements and schedules, reported as supplementary information, as described in the table of contents, which accompany the financial statements, but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We were not engaged to report on the introductory section and the statistical section, which accompany the financial statements, but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on it. In GOVERNMENTAL FUNDS OVERVIEW This section of the report provides you with an overview of the financial trends and activities of the City's governmental funds, which includes the General, special revenue, debt service, and capital projects funds. These funds are used to account for the basic services the City provides to all of its citizens, which are financed primarily with property taxes. The governmental fund information in the City's financial statements focuses on budgetary compliance and the sufficiency of each governmental fund's current assets to finance its current liabilities. GOVERNMENTAL FUND BALANCES The following table summarizes the changes in the fund balances of the City's governmental funds during the year ended December 31, 2025, presented both by fund balance classification and by major fund: Governmental Funds Change in Fund Balance Fund Balance as of December 31, 2025 2024 Change Fund balances of governmental funds Total by classification Nonspendable $ 60,983 $ 49,266 $ 11,717 Restricted 2,460,293 1,506,861 953,432 Committed 819,179 835,010 (15,831) Assigned 4,485,693 4,264,184 221,509 Unassigned 3,805,325 2,801,052 1,004,273 Total governmental funds $ 11,631,473 $ 9,456,373 $ 2,175,100 Total by fund General $ 4,222,107 $ 3,320,763 $ 901,344 Permanent Improvement Revolving 2,952,648 3,118,495 (165,847) Public Safety Capital Equipment 637,957 409,206 228,751 Other governmental funds 3,818,761 2,607,909 1,210,852 Total governmental funds $ 11,631,473 $ 9,456,373 $ 2,175,100 In total, the fund balances of the City's governmental funds increased by $2,175,100 during the year. The largest increase was in the General Fund with an increase in unassigned fund balance. The increase in other governmental funds was largely restricted for debt service and park improvements. -5- GOVERNMENTAL FUNDS REVENUE The following table presents the City's governmental funds revenue by source for the last two fiscal years. Governmental Funds Revenue by Source 2025 2024 Year -to -Year Change Percent Percent Dollar Percent Revenue of Total Revenue of Total Change Change Property taxes $ 5,815,629 57.7 % $ 5,346,109 64.7 % $ 469,520 8.8 % Tax increments (refunds) (15,968) (0.2) 15,968 100.0 % Franchise and other taxes 483,419 4.8 85,074 1.0 398,345 468.2 % Special assessments 309,728 3.1 686,330 8.3 (376,602) (54.9) % Licenses and permits 962,260 9.6 448,587 5.4 513,673 114.5 % Intergovernmental 724,704 7.2 591,609 7.2 133,095 22.5 % Charges for services 512,119 5.1 356,689 4.3 155,430 43.6 % Other 1,258,894 12.5 770,655 9.3 488,239 63.4 % Total revenue $ 10,066,753 100.0 % $ 8,269,085 100.0 % $ 1,797,668 21.7 % The City's governmental fund revenues for 2025 were $10,066,753, an increase of $1,797,668 (21.7 percent) from the prior year. Property taxes increased as anticipated with the change in the adopted levy. Franchise and other taxes increased with the approval of a new franchise fee approved to finance the debt service of a new fire station within the City. Revenue growth in several remaining sources was largely due to expanded development and values on new property improvements. 0 PROPERTY TAXES Minnesota cities rely heavily on local property taxes to support governmental fund activities. In the 2025 fiscal year, ad valorem property taxes provided 57.7 percent of the City's total governmental funds revenue. The City's taxable market value increased by 9.0 percent for taxes payable in 2024 and 1.9 percent for taxes payable in 2025. The following graph shows the City's changes in estimated market value over the past 10 years: $2,000,000, 000 $1,800,000,000 $1,600,000, 000 $1,400,000, 000 $1,200,000, 000 $1,000,000, 000 $800,000,000 $ 600,000, 000 $400,000,000 $200,000, 000 Taxable Market Value 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Tax capacity is considered the actual base available for taxation. It is calculated by applying the state's property classification system to each property's market value. Each property classification, such as commercial or residential, has a different calculation and uses different rates. Consequently, a city's total tax capacity will change at a different rate than its total market value, as tax capacity is affected by the proportion of its tax base that is in each property classification from year-to-year, as well as legislative changes to tax rates. The City's tax capacity increased 10.3 percent and 1.2 percent for taxes payable in 2024 and 2025, respectively. The following graph shows the City's change in tax capacities over the past 10 years: $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 Local Tax Capacity 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 -7- The following graph presents the City's certified tax levy and resulting tax rates applied to city residents for each of the last five levy years: Tax Levies and Rates $7,000,000 28.0% 27.60//( 26.5% $5,310,950 $6,028,012 The City's certified levy has continued to grow over the last five years, while the tax rate has also changed due to the shift of the tax base. GOVERNMENTAL FUNDS EXPENDITURES The expenditures of governmental funds will also vary from year-to-year, based on the City's circumstances. Expenditures are classified into three types as follows: Current — These are typically the general operating type expenditures occurring on an annual basis, and are primarily funded by general sources, such as taxes and intergovernmental revenues. • Capital Outlay and Construction — These expenditures do not occur on a consistent basis, more typically fluctuating significantly from year-to-year. Many of these expenditures are project -oriented and are often funded by specific sources that have benefited from the expenditure, such as special assessment improvement projects. • Debt Service — Although the expenditures for debt service may be relatively consistent over the term of the respective debt, the funding source is the important factor. Some debt may be repaid through specific sources, such as special assessments or redevelopment funding, while other debt may be repaid with general property taxes. The following table presents the City's governmental funds expenditures by type for the last two fiscal years: Governmental Funds Expenditures by Type 2025 2024 Year -to -Year Change Percent Percent Dollar Percent Expenditure of Total Expenditure of Total Change Change Current General government $ 1,518,034 13.4 % $ 1,598,568 14.1 % $ (80,534) (5.0) % Public safety 6,171,074 54.3 2,824,305 24.9 3,346,769 118.5 % Public works 723,346 6.4 716,140 6.3 7,206 1.0 % Parks and recreation 1,023,288 9.0 751,835 6.6 271,453 36.1 % All other 81,436 0.7 307,334 2.7 (225,898) (73.5) % Total current 9,517,178 83.8 6,198,182 54.6 3,318,996 53.5 % Capital outlay 1,757,752 15.4 5,142,457 45.4 (3,384,705) (65.8) % Debt service 89,370 0.8 — — 89,370 — % Total expenditures $ 11,364,300 100.0 % $ 11,340,639 100.0 % $ 23,661 0.2 % Total expenditures in the City's governmental funds for 2025 were $11,364,300, an increase of $23,661 (0.2 percent) from the prior year. Current spending for public safety was up with increased contract costs for fire and police safety. The City also passed through approximately $2.8 million for the construction of a new fire station as part of a joint powers agreement. Spending was down by a similar amount in capital outlay with more capital projects ongoing in the prior year. In THIS PAGE INTENTIONALLY LEFT BLANK GENERAL FUND OVERVIEW This section of the report focuses specifically on the financial trends and activities of the General Fund, which accounts for the financial activity of the basic services provided to the community. The primary services included within this fund include the administration of municipal operations, police and fire protection, permitting and building inspection, streets and highway maintenance, culture and recreation, and economic development. GENERAL FUND FINANCIAL POSITION The graph below illustrates the change in the fund balances of the General Fund over the last five years: General Fund Year -End Fund Balance As of December 31, m n cnn nnn ,D`i,J VV,V V V $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 2021 2022 2023 2024 2025 ❑ Unassigned $2,899,564 $3,072,714 $2,878,628 $3,050,074 $4,051,711 ■ Assigned $239,096 $259,015 $287,553 $225,928 $122,096 ■ Nonspendable $31,152 $34,508 $39,554 $44,761 $48,300 Total fund balance at year-end was $4,222,107, an increase of $901,344 from the prior year, as compared to the final budget that projected a reduction of $312,009. The City's unassigned General Fund balance of $4,051,711 at the end of the 2025 fiscal year represents 55.8 percent of expenditures projected in the 2026 adopted budget. -10- The City has adopted a fund balance policy that establishes a minimum unassigned General Fund balance of 50.0 percent of the subsequent year's budgeted expenditures. The following graph presents this ratio for the last five years compared to this policy: Fund Balance as a Percentage of Expenditures Year Ended December 31, 60% 55% 50% 45% 40% 2021 2022 2023 2024 2025 t Fund Balance Policy 50.0% 50.0% 50.0% 50.0% 50.0% Unassigned Fund Balance 55.3% 55.6% 47.4% 45.4% 55.8% LI As the graph illustrates, the City has met the year-end fund balance policy goal as of December 31, 2025. A government, like any organization, requires a certain amount of equity to operate. A healthy financial position allows the City to avoid volatility in tax rates; helps minimize the impact of state funding changes; allows for the adequate and consistent funding of services, repairs, and unexpected costs; and is a factor in determining the City's bond rating and resulting interest costs. A trend that is typical to Minnesota local governments, especially the General Fund of cities, is the unusual cash flow experienced throughout the year. The City's General Fund cash disbursements are spread relatively evenly throughout the year, other than the impact of seasonal services such as snowplowing, street maintenance, and recreation activities. Cash receipts of the General Fund are quite a different story. Property taxes comprise about 71.4 percent of the fund's total annual revenue. Approximately half of the City's annual property tax levy is collected and remitted to the City by the end of June and the rest by December. Consequently, cities depend on the resources this fund balance represents to provide adequate cash reserves to finance their everyday operations between these collections. -11- GENERAL FUND REVENUES The following graph reflects the City's General Fund revenues, budget and actual, for 2025: Taxes Intergovernmental Charges for Services Licenses and Permits All Other General Fund Revenue Budget and Actual Ilk Tr ■ Budget ■ Actual Total General Fund revenues for 2025 were $7,286,615, which was $647,345 (9.8 percent) over the final budget. Licenses and permits exceeded budget by $411,720, largely due to increased volume and valuation of the new construction in the current year. All other revenues were over budget by $292,189, largely due to conservative budgeting for earnings on investments. The following graph presents the City's General Fund revenues by source for the last five years. The graph reflects the City's reliance on property taxes: $6,0( $5,0( $4,0( $3,0( $2,0( $1,0( $(1,00 General Fund Revenue by Source Year Ended December 31, �,­v 0,000 0,000 0,000 0,000 0,000 $_ M ),000) Property taxes Intergovernmental Charges for Services Licenses and Permits All Other 02021 $3,763,384 $160,279 $459,638 $752,532 $168,757 02022 $3,829,079 $174,405 $476,574 $830,866 $(4,488) 132023 $3,963,077 $167,376 $342,339 $471,742 $409,621 02024 $4,622,580 1 $116,870 1 $356,689 $448,587 1 $347,629 02025 $5,201,278 1 $134,054 1 $512,119 $962,260 1 $476,904 Total General Fund revenues for 2025 were $1,394,260 more than prior year spread across each category presented in the above graph. Property taxes were up in the General Fund, due to an increase in the City Council -approved tax levy. Licenses and permits were up due to the large increase in permits and valuations in the current year. -12- GENERAL FUND EXPENDITURES The following graph illustrates the components of General Fund spending for 2025 compared to budget: General Government Public Safety Public Works Parks and Recreation General Fund Expenditures Budget and Actual °000 000 ,soo ■ Budget ■ Actual 000000 ,r000 oo�o°o s�o°o Total General Fund expenditures for 2025 were $6,335,271, which was $566,008 (8.2 percent) under the final budget. As presented in the budgetary comparison schedule (within the City's ACFR), expenditure variances were both favorable and unfavorable within the various functions and departments, while overall, they remained within total appropriations approved by the City Council. All functions for general government, public safety, public works, and parks and recreation were under budget. The spending variance was largely in personal services and with less spending on street maintenance than projected. The following graph presents the City's General Fund expenditures by function for the last five years: $3,500 000 $3,0 $2,5 $2,0 $1,5 $1,0 $5 General Fund Expenditures by Function Year Ended December 31, 00,000 00,000 00,000 00,000 00,000 00,000 General Government Public Safety Public Works Parks and Recreation 02021 $1,014,282 $2,708,137 $618,236 $626,629 02022 $1,077,037 $2,546,051 $914,148 $665,776 132023 $1,235,704 $2,704,012 $682,510 $721,291 02024 $1,435,047 $2,824,305 $716,140 $751,835 02025 $1,380,065 $3,208,572 $723,346 $1,023,288 Overall, General Fund expenditures increased $607,944 (10.6 percent) from the prior year. The largest increases were primarily in public safety and parks and recreation, due to inflationary growth in fire and police protection contracts and in personal services. -13- Overall, General Fund expenditures increased $607,944 (10.6 percent) from the prior year. The largest increases were primarily in public safety and parks and recreation, due to inflationary growth in fire and police protection contracts and in personal services. -13- ENTERPRISE FUNDS OVERVIEW The City maintains several enterprise funds to account for services the City provides that are financed primarily through fees charged to those utilizing the service. This section of the report provides you with an overview of the financial trends and activities of the City's enterprise funds, which include the Water, Sewer, Surface Water Management, and Recycling Funds. The utility funds comprise a considerable portion of the City's activities. We understand that the City is proactive in reviewing these activities on an ongoing basis and we want to reiterate the importance of continually monitoring these operations. Over the years, we have emphasized to our city clients the importance of these utility operations being self-sustaining, preventing additional burdens on general government funds. This would include the accumulation of net position for future capital improvements and to provide a cushion in the event of a negative trend in operations. ENTERPRISE FUNDS FINANCIAL POSITION The following table summarizes the changes in the financial position of the City's enterprise funds during the year ended December 31, 2025, presented both by classification and by fund: Enterprise Funds Change in Financial Position Net Position as of December 31, 2025 2024 Change Net position of enterprise funds Total by classification Net investment in capital assets $ 20,702,474 $ 19,805,933 $ 896,541 Unrestricted 6,382,876 6,338,765 44,111 Total enterprise funds $ 27,085,350 $ 26,144,698 $ 940,652 Total by fund Water $ 11,220,969 $ 11,229,489 $ (8,520) Sewer 9,174,497 8,570,273 604,224 Surface Water Management 6,362,820 6,079,069 283,751 Recycling (nonmajor) 327,064 265,867 61,197 Total enterprise funds $ 27,085,350 $ 26,144,698 $ 940,652 In total, the net position of the City's enterprise funds increased by $940,652 during the year ended December 31, 2025. The increase in net position is primarily related to positive operating results, investment earnings, and capital contributions. -14- WATER FUND The following graph presents five years of operating results for the Water Fund: Water Fund Year Ended December 31, $3,000,000 $2,500,000 $2,000,000 $1,5 00,000 $1,000,000 $500,000 $(500,000) 2021 2022 2023 2024 2025 �Oper Rev $2,789,472 $2,823,414 $3,054,674 $2,708,831 $2,740,879 OOperExp $2,114,670 $2,429,781 $2,640,905 $2,530,183 $2,972,466 Oper Inc (Loss) $674,802 $393,633 $413,769 $178,648 $(231,587) Inc Before Dep $1,040,255 $757,515 $790,411 $561,332 $149,214 The Water Fund ended 2025 with a total net position of $11,220,969, a decrease of $8,520 from the prior year. Of this, $8,158,754 represents the net investment in capital assets, leaving an unrestricted net position of $3,062,215. Water Fund operating revenues were $2,740,879, an increase of $32,048. Operating expenses were up $442,283 over the previous year, mainly in purchased water costs and natural inflationary increases. Consumption will fluctuate from year-to-year based on many factors, including weather patterns and number of utility customers. -15- SEWER FUND The following graph presents five years of operating results for the Sewer Fund: Sewer Fund Year Ended December 31, m, nnn nnn .pJ,VVV,VVV $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 2021 2022 2023 2024 2025 �OperRev $2,110,766 $2,209,253 $2,394,498 $2,429,894 $2,667,875 OOperExp $1,746,702 $1,811,121 $1,859,157 $1,977,601 $2,128,723 —Oper Inc $364,064 $398,132 $535,341 $452,293 $539,152 Inc Before Dep F $558,492 $596,576 $756,908 $681,225 $769,262 The Sewer Fund ended 2025 with a total net position of $9,174,497, an increase of $604,224 from the prior year. Of this, $7,466,983 represents the investment in capital assets, leaving unrestricted net position of $1,707,514. Operating revenue in the Sewer Fund increased $237,981 (9.8 percent) from the prior year, due to an approved rate increase in the current year. Sewer Fund operating expenses for 2025 increased $151,122 (7.6 percent) from the previous year, mainly in sewer charges for an increase in consumption and with natural inflationary increases in remaining operating spending. -16- SURFACE WATER MANAGEMENT FUND The following graph presents five years of operating results for the Surface Water Management Fund: Surface Water Management Year Ended December 31, .�'1,GVV,VVV $1,000,000 $800,000 $600,000 $400,000 $200,000 $ 2021 2022 2023 2024 2025 �OperRev $902,044 $937,652 $958,807 $990,153 $1,018,879 OOper Exp $599,084 $610,730 $673,556 $678,340 $721,145 Oper Inc $302,960 $326,922 $285,251 $311,813 $297,734 Inc Before Dep $447,968 $478,480 $448,688 $476,054 $466,074 The Surface Water Management Fund ended 2025 with a total net position of $6,362,820, an increase of $283,751 from the prior year. Of this, $5,076,737 represents the investment in capital assets, leaving unrestricted net position of $1,286,083. Operating revenue in the Surface Water Management Fund increased $28,726 (2.9 percent) from the prior year, due to an approved rate increase. Operating expenses for 2025 increased $42,805 (6.3 percent) from the previous year, mainly in purchased services with increased surface water maintenance costs and with natural inflationary increases in remaining expenses. -17- RECYCLING FUND The following graph presents five years of operating results for the Recycling Fund: Recycling Fund Year Ended December 31, awv,vvv $250,000 $200,000 $150,000 $100,000 $50,000 $(50,000) 2021 2022 2023 2024 2025 �OperRev $177,057 $169,905 $151,340 $161,882 $257,434 OOperExp $154,611 $173,092 $154,519 $168,958 $261,657 Oper Inc (Loss) $22,446 $(3,187) $(3,179) $(7,076) $(4,223) The Recycling Fund ended 2025 with an unrestricted net position of $327,064, an increase of $61,197 from the prior year. Operating revenues for 2025 were $257,434, which was $95,552 more than the prior year, due to an approved rate change to cover the increase in contracted services for recycling. Operating expenses for 2025 were $261,657, an increase of $92,699 from the prior year. The Recycling Fund also received $50,798 of nonoperating intergovernmental revenues that are available for the operation of the City's Recycling Program. THIS PAGE INTENTIONALLY LEFT BLANK GOVERNMENT -WIDE FINANCIAL STATEMENTS In addition to fund -based information, the current reporting model for governmental entities also requires the inclusion of two government -wide financial statements designed to present a clear picture of the City as a single, unified entity. These government -wide financial statements provide information on the total cost of delivering services, including capital assets and long-term liabilities. STATEMENT OF NET POSITION The Statement of Net Position essentially tells you what your city owns and owes at a given point in time, the last day of the fiscal year. Theoretically, net position represents the resources the City has leftover to use for providing services after its debts are settled. However, those resources are not always in spendable form, or there may be restrictions on how some of those resources can be used. Therefore, net position is divided into three components: net investment in capital assets, restricted, and unrestricted. The following table presents the components of the City's net position as of December 31, 2025 and 2024, for governmental activities and business -type activities (utility operations): Net position Governmental activities Net investment in capital assets Restricted Unrestricted Total governmental activities Business -type activities Net investment in capital assets Unrestricted Total business -type activities Total net position As of December 31, 2025 2024 Change $ 30,984,388 $ 29,966,362 $ 1,018,026 2,380,496 1,506,861 873,635 10,427, 879 10,231,472 196,407 43,792,763 41,704,695 2,088,068 20,702,474 19,805,933 896,541 6,382,876 6,338,765 44,111 27,085,350 26,144,698 940,652 $ 70,878,113 $ 67,849,393 $ 3,028,720 Net position for governmental activities increased by $2,088,068 in 2025, as presented above. The net investment in capital assets increased $1,018,026. The change in this category of net position typically depends on the relationship of the rate at which the City is adding capital assets, the rate capital assets are being depreciated, and how the City finances the purchase and construction of capital assets. The change in the restricted portion of net position of $873,635 was primarily due to increases in the amounts restricted for debt service and park improvement purposes. The change in net position for business -type activities is consistent with our earlier discussion of the utility operations, which are presented under the same, full accrual basis of accounting. -19- STATEMENT OF ACTIVITIES The Statement of Activities tracks the City's yearly revenues and expenses, as well as any other transactions that increase or reduce total net position. These amounts represent the full cost of providing services. The Statement of Activities provides a more comprehensive measure than just the amount of cash that changed hands, as reflected in the fund -based financial statements. This statement includes the cost of supplies used, depreciation of long-lived capital assets, and other accrual -based expenses. The following table presents the change in the net position of the City for the years ended December 31, 2025 and 2024: 2025 2024 Program Expenses Revenues Net Change Net Change Net (expense) revenue Governmental activities General government $ 1,602,925 $ 437,800 $ (1,165,125) $ (1,205,985) Public safety 3,594,695 1,500,146 (2,094,549) (2,815,708) Public works 1,858,891 1,122,368 (736,523) (85,764) Parks and recreation 1,334,792 562,244 (772,548) (953,155) Economic development 140,148 2,875 (137,273) (363,555) Interest and fiscal charge 162,483 — (162,483) — Business -type activities Water 2,992,669 2,915,195 (77,474) 341,795 Sewer 2,131,855 2,792,754 660,899 522,212 Surface water management 721,145 1,018,539 297,394 316,699 Recycling 261,657 308,232 46,575 14,965 Total net (expense) revenue $ 14,801,260 $ 10,660,153 (4,141,107) (4,228,496) General revenues General property taxes 5,814,797 5,364,181 Tax increments (abatements) — (15,968) Franchise taxes 483,419 85,074 Earnings on investments 871,611 828,047 Total general revenues 7,169,827 6,261,334 Change in net position $ 3,028,720 $ 2,032,838 One of the goals of this statement is to provide a side -by -side comparison to illustrate the difference in the way the City's governmental and business -type operations are financed. The table clearly illustrates the dependence of the City's governmental operations on general revenues, such as taxes and earnings on investments. It also shows that the City's overall business -type activities are generating sufficient program revenues (service charges and program -specific grants) to cover expenses. This is critical given the current downward pressures on the general revenue sources. -20- ACCOUNTING AND AUDITING UPDATES The following is a summary of Governmental Accounting Standards Board (GASB) standards expected to be implemented in the next few years. GASB STATEMENT No.103, FINANCIAL REPORTING MODEL IMPROVEMENTS The objective of this statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government's accountability. This statement also addresses certain application issues. This statement continues the requirement that the basic financial statements be preceded by management's discussion and analysis (MD&A), which is presented as required supplementary information (RSI). This statement requires that the information presented in MD&A be limited to the related topics discussed in five sections: (1) Overview of the Financial Statements, (2) Financial Summary, (3) Detailed Analyses, (4) Significant Capital Asset and Long -Term Financing Activity, and (5) Currently Known Facts, Decisions, or Conditions. Furthermore, this statement stresses that the detailed analyses should explain why balances and results of operations changed rather than simply presenting the amounts or percentages by which they changed. In addition, this statement continues the requirement that information included in MD&A distinguish between that of the primary government and its discretely presented component units. This statement defines unusual or infrequent items as transactions and other events that are either unusual in nature or infrequent in occurrence, and requires governments to display the inflows and outflows related to each unusual or infrequent item separately. This statement requires that the proprietary fund statement of revenues, expenses, and changes in fund net position continue to distinguish between operating and nonoperating revenues and expenses. In addition to the subtotals currently required in a proprietary fund statement of revenues, expenses, and changes in fund net position, this statement requires that a subtotal for operating income (loss) and noncapital subsidies be presented before reporting other nonoperating revenues and expenses. This statement requires governments to present each major component unit separately in the reporting entity's statement of net position and statement of activities if it does not reduce the readability of the statements. If the readability of those statements would be reduced, combining statements of major component units should be presented after the fund financial statements. This statement requires governments to present budgetary comparison information using a single method of communication—RSI. Governments also are required to present (1) variances between original and final budget amounts and (2) variances between final budget and actual amounts. An explanation of significant variances is required to be presented in the notes to RSI. The requirements of this statement are effective for fiscal years beginning after June 15, 2025, and all reporting periods thereafter. Earlier application is encouraged. -21- GASB STATEMENT NO.104, DISCLOSURE OF CERTAIN CAPITAL ASSETS The objective of this statement is to provide users of government financial statements with essential information about certain types of capital assets. This statement requires certain types of capital assets to be disclosed separately in the capital assets note disclosures required by GASB Statement No. 34. Lease assets recognized in accordance with Statement No. 87, Leases, and intangible right -to -use assets recognized in accordance with Statement No. 94, Public -Private and Public -Public Partnerships and Availability Payment Arrangements, should be disclosed separately by major class of underlying asset in the capital assets note disclosures. Subscription assets recognized in accordance with Statement No. 96, Subscription -Based Information Technology Arrangements, also should be separately disclosed. In addition, this statement requires intangible assets other than those three types to be disclosed separately by major class. This statement also requires additional disclosures for capital assets held for sale. A capital asset is considered held for sale if (a) the government has decided to pursue the sale of the capital asset and (b) it is probable that the sale will be finalized within one year of the financial statement date. Governments should consider relevant factors to evaluate the likelihood of the capital asset being sold within the established time frame. Capital assets held for sale are required to be evaluated each reporting period. Governments should disclose (1) the ending balance of capital assets held for sale, with separate disclosure for historical cost and accumulated depreciation by major class of asset, and (2) the carrying amount of debt for which the capital assets held for sale are pledged as collateral for each major class of asset. The requirements of this statement are effective for fiscal years beginning after June 15, 2025, and all reporting periods thereafter. Earlier application is encouraged. GASB STATEMENT No.105, SUBSEQUENT EVENTS The objective of this statement is to improve the financial reporting requirements for subsequent events, thereby enhancing consistency in their application and better meeting the information needs of financial statement users. This statement defines subsequent events as transactions or other events that occur after the date of the financial statements but before the date the financial statements are available to be issued. This statement describes the date the financial statements are available to be issued as the date at which (1) the financial statements are complete in a form and format that complies with generally accepted accounting principles and (2) approvals necessary for issuance have been obtained. That definition modifies the subsequent events time frame throughout the GASB literature. This statement also requires the date through which subsequent events have been evaluated to be disclosed. This statement clarifies the subsequent events that constitute recognized and nonrecognized events and establishes specific note disclosure requirements for nonrecognized events. The requirements of this statement are effective for fiscal years beginning after June 15, 2026, and all reporting periods thereafter. Earlier application is encouraged. -22- Attachment C CITY OF SILLS ARDEN HILLS, MINNESOTA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025 CITY OF ARDEN HILLS RAMSEY COUNTY, MINNESOTA Annual Comprehensive Financial Report For the Fiscal Year Ended December 31, 2025 REPORT PREPARED BY FINANCE DEPARTMENT THIS PAGE INTENTIONALLY LEFT BLANK CITY OF ARDEN HILLS RAMSEY COUNTY, MINNESOTA Table of Contents INTRODUCTORY SECTION Page Letter of Transmittal i—iii GFOA Certificate of Achievement iv City Council and Appointed Officials v Organization Chart vi FINANCIAL SECTION INDEPENDENT AUDITOR'S REPORT 1-4 MANAGEMENT'S DISCUSSION AND ANALYSIS 5-14 BASIC FINANCIAL STATEMENTS Government -Wide Financial Statements Statement of Net Position 15 Statement of Activities 16 Fund Financial Statements Governmental Funds Balance Sheet 17 Reconciliation of the Balance Sheet to the Statement of Net Position 18 Statement of Revenues, Expenditures, and Changes in Fund Balances 19 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities 20 Proprietary Funds Statement of Net Position 21 Statement of Revenues, Expenses, and Changes in Net Position 22 Statement of Cash Flows 23 Notes to Basic Financial Statements 24-46 REQUIRED SUPPLEMENTARY INFORMATION PERA — General Employees Retirement Fund Schedule of City's and Nonemployer Proportionate Share of Net Pension Liability 47 Schedule of City Contributions 47 Budgetary Comparison Schedule General Fund 48-50 Notes to Required Supplementary Information 51-54 SUPPLEMENTARY INFORMATION Combining and Individual Fund Statements and Schedules Nonmajor Governmental Funds Combining Balance Sheet 55 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 56 CITY OF ARDEN HILLS RAMSEY COUNTY, MINNESOTA Table of Contents (continued) Page SUPPLEMENTARY INFORMATION (CONTINUED) Combining and Individual Fund Statements and Schedules (continued) Nonmajor Special Revenue Funds Combining Balance Sheet 57 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 58 Nonmajor Capital Project Funds Combining Balance Sheet 59 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 60 Nonmajor Special Revenue Funds Schedule of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual Cable Fund 61 EDA Operating Fund 62 EDA TIF District No. 3 Fund 63 EDA TIF District No. 4 Fund 64 EDA TIF District No. 5 Fund 65 Internal Service Funds Combining Statement of Net Position 66 Combining Statement of Revenues, Expenses, and Changes in Net Position 67 Combining Statement of Cash Flows 68 STATISTICAL SECTION (UNAUDITED) Net Position by Component 69-70 Changes in Net Position 71-74 Governmental Activities Tax Revenues by Source 75 Fund Balances of Governmental Funds 76-77 Changes in Fund Balances of Governmental Funds 78-79 General Governmental Tax Revenues by Source 80 Tax Capacity Value and Estimated Market Value of Taxable Property 81-82 Property Tax Rates — Direct and Overlapping Governments 83 Principal Property Taxpayers 84 Property Tax Levies and Collections 85 Ratios of Outstanding Debt by Type 86 Ratios of General Bonded Debt Outstanding 87 Direct and Overlapping Governmental Activities Debt 88 Legal Debt Margin Information 89-90 Pledged Revenue Coverage 91 Demographic and Economic Statistics 92 Principal Employers 93 Operating Indicators by Function 94-95 Full -Time Equivalent City Government Employees by Function 96-97 Capital Asset Statistics by Function 98-99 INTRODUCTORY SECTION It..- -ARPEN HILLS May 26, 2026 To the Honorable Mayor, Members of the City Council, and Citizens of the City of Arden Hills, Minnesota State law requires that every general-purpose local government publish a complete set of audited financial statements. This report is published to fulfill that requirement for the fiscal year ended December 31, 2025. Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control that it has established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute assurance that the financial statements are free of any material misstatements. LB Carlson, LLP, Certified Public Accountants, have issued an unmodified ("clean") opinion on the City of Arden Hills, Minnesota's (the City) financial statements for the year ended December 31, 2025. The independent auditor's report is located at the front of the financial section of this report. The management's discussion and analysis (MD&A) immediately follows the independent auditor's report and provides a narrative introduction, overview, and analysis of the basic financial statements. The MD&A complements this letter of transmittal and should be read in conjunction with it. PROFILE OF THE GOVERNMENT The City, incorporated in 1951, is a northern suburb of the Minneapolis/St. Paul metropolitan area, situated in Ramsey County. The City occupies 9.65 square miles and serves an estimated population of 10,220. The City is empowered to levy a property tax on both real and personal property located within its boundaries. The City operates under the "Optional Plan A" form of government as defined in Minnesota Statutes. Under this plan, the government of the City is directed by a City Council composed of an elected mayor and four elected councilmembers. The City Council exercises legislative authority and determines all matters of policy. The City Council appoints personnel responsible for the proper administration of all affairs relating to the City. Councilmembers serve four-year terms, with two members elected every two years. The mayor is elected for a four-year term. The mayor and members of the City Council are elected at large. The City provides a full range of services: the construction and maintenance of streets and other infrastructure; recreational and cultural activities; water, sewer, surface water management, and recycling systems; community development, building inspection, and planning; and general government operations, including administration, finance/accounting, community information (newsletter), and general government buildings. The City contracts with Ramsey County for police services, Lake Johanna Fire Department for fire services, and Metro-INET for information services. -1- City of Arden Hills • 1245 West Highway 96 Arden Hills, MN * 55112-5743 Phone 651.792.7800 * Fax 651.634.5137 www.ci.arden-hills.mn.us The City Council is required to adopt a final budget by late December for the subsequent year. The budget is prepared by fund, function (e.g., public safety), and department (e.g., police). Transfers of appropriations between funds require the approval of the City Council. The legal level of budgetary control is the fund level. Budgeted amounts may be amended by the City Council. Governmental funds with annually adopted budgets include the General Fund and special revenue funds. The City's capital improvement program (covering five years), the pavement management plan (covering five years), and the Rice Creek Commons (Twin Cities Army Ammunition Plant, TCAAP) development plan, along with the annual budget, serve as the foundation for the City's financial planning, and the annual budget serves as the budget control. LOCAL ECONOMY Several high -profile leaders in the medical, technology, and business sectors, including Boston Scientific, Land O'Lakes, Delkor, Intricon, Venture Solutions, Gradient Financial, and Presbyterian Homes, are located within the City. These leaders of industry provide high -paying jobs to skilled employees, which in turn creates a strong base for economic diversity, quality housing, and an involved citizenry. Because of its location in a region with a varied economic base, unemployment is relatively stable. During the past 10 years, the unemployment rate has fluctuated from a high of 7.0 percent in 2020, to a low of 2.6 percent in 2022. The current rate is 2.9 percent. During the past 10 years, property taxes have remained a stable and significant source of total General Fund and special revenue fund revenues. Intergovernmental makes up approximately 1.8 percent of total revenues in the General Fund and special revenue funds for the current fiscal year. LONGTERM FINANCIAL PLANNING The unassigned General Fund balance of $4,051,711 (55.8 percent of total subsequent year General Fund expenditures budgeted) meets the 50.0 percent target set by the City Council for budgetary and planning purposes. The total General Fund balance also includes $48,300 of nonspendable equity for prepaid items and $122,096 of assigned equity for compensated absences. The City's five-year capital improvement program and pavement management plan serve as the foundation for the City's long-term financial planning. To ensure the timely replacement of infrastructure, the City prepares long-term cost projections for the replacement of all city assets. Funding needs for capital replacements are reflected in tax levies and special assessments for capital assets and are reflected in user fees established for the Water, Sewer, Surface Water Management, and Recycling Funds. Projections for the next 10 years indicate that property tax contributions, user fees, and investment income will need to be reevaluated to support scheduled replacements. The City entered into a Joint Powers Agreement with Ramsey County to form a Joint Development Authority to acquire and develop a portion of the Army property, Rice Creek Commons, formerly known as TCAAP. Ramsey County officially acquired this property and has cleaned it to residential standards. The City completed the Rice Creek Commons Redevelopment Code, which guides the land use on the site. The land remains shovel -ready, pending future development agreements; any future development on the site is expected to add to the City's tax base and could include commercial/industrial, residential, and civic uses. The site is approximately 430 acres. RELEVANT FINANCIAL POLICIES The City utilizes various financial and budget policies to guide the City Council and staff when making financial decisions. The primary objective of these policies is to guarantee effective delivery of city services to residents and businesses, and to ensure protection of the City's financial strength and flexibility through a revenue structure and long-term planning effort that is consistent with City Council goals and working capital targets. The City uses a conservative approach in making ongoing revenue assumptions by utilizing growth patterns and knowledge of the developing areas. As part of the annual budget process, the City reviews its financial and budget policies. There have been no significant changes to these policies from the previous year. MAJOR INITIATIVES The largest initiative on the City's horizon is the Rice Creek Commons project, as previously mentioned. This project is a joint effort between the City and Ramsey County. When completed, this project will represent almost a 40 percent population increase to the City, as well as a significant increase to the commercial and industrial sectors. City representatives are working hard to ensure the development is a long-term, sustainable project that adds to the City's diverse residents, businesses, and open space without burdening the existing city taxpayers. The Rice Creek Commons project is expected to be a destination site for the region and serve as a model for future developments. ACKNOWLEDGEMENTS The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its Annual Comprehensive Financial Report (ACFR) for the fiscal year ended December 31, 2024. This is the 19th year that the City has received this prestigious award. To receive this Certificate of Achievement, the City had to publish an easily readable and efficiently organized ACFR that satisfied both accounting principles generally accepted in the United States of America and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current ACFR continues to meet the Certificate of Achievement Program's requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate. The preparation of this report would not have been possible without the efficient and dedicated service of the entire staff of the finance department, and through the helpful guidance and assistance from our auditing firm, LB Carlson, LLP. We wish to express our appreciation to all members of the department who assisted and contributed to the preparation of this report. Credit also must be given to the mayor and City Council for their unfailing support in maintaining the highest standards of professionalism in the management of the City's finances. Respectfully submitted, 4 Jessica Jagoe City Administrator Joua Yang Finance Director -HI- Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Arden Hills Minnesota For its Annual Comprehensive Financial Report For the Fiscal Year Ended December 31, 2024 Executive Director/CEO -iv- David Grant Brenda Holden Tena Monson Emily Rousseau Kurt Weber Jessica Jagoe Joua Yang CITY OF ARDEN HILLS RAMSEY COUNTY, MINNESOTA City Council and Appointed Officials December 31, 2025 CITY COUNCIL Term Expires Mayor December 31, 2026 Councilmember Councilmember Councilmember Councilmember APPOINTED OFFICIALS City Administrator Finance Director December 31, 2028 December 31, 2026 December 31, 2026 December 31, 2028 -v- Public Safety Ramsey County Sheriff Lake Johanna Fire Department Emergency Management City of Arden Hills Citizens City Council (5) City Administrator City Attorney Finance City Clerk/Asst. to the Community Public Works Director City Administrator Development Director Director/City Engineer _ Accounting Deputy Clerk Building Senior Analyst Official Planner Office Public Works Asst. Public Support Building Superintendent Works Accounting Specialist Inspector Director Clerk Public Works Customer Lead Workers (2) Parks & Service Recreation Specialist Public Works Manager Maintenance Workers (6) Communications Recreation Coordinator Supervisor Public Works Office Support Specialist FINANCIAL SECTION LB CARLSON INDEPENDENT AUDITOR'S REPORT To the City Council and Management City of Arden Hills, Minnesota REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS OPINIONS We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Arden Hills, Minnesota (the City) as of and for the year ended December 31, 2025, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City as of December 31, 2025, and the respective changes in financial position, and, where applicable, cash flows thereof, for the year then ended, in accordance with accounting principles generally accepted in the United States of America. BASIS FOR OPINIONS We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. RESPONSIBILITIES OF MANAGEMENT FOR THE FINANCIAL STATEMENTS Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for 12 months beyond the financial statements date, including any currently known information that may raise substantial doubt shortly thereafter. (continued) -1- AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance, but is not absolute assurance and, therefore, is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. (continued) -2- REQUIRED SUPPLEMENTARY INFORMATION Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and the required supplementary information (RSI), as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the RSI in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. SUPPLEMENTARY INFORMATION Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The accompanying combining and individual fund statements and schedules, as listed in the table of contents, are presented for the purpose of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. OTHER INFORMATION Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections, but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. (continued) -3- OTHER REPORTING REQUIRED BY GOVERNMENTAUDmNGSTANDARDs In accordance with Government Auditing Standards, we have also issued our report dated May 26, 2026 on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. Respectfully submitted, LB CARLSON, LLP Minneapolis, Minnesota May 26, 2026 IS CITY OF ARDEN HILLS Management's Discussion and Analysis Year Ended December 31, 2025 As the management of the City of Arden Hills, Minnesota (the City), we offer readers of the City's Annual Comprehensive Financial Report (ACFR), this narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2025. We encourage readers to consider the information presented here, in conjunction with additional information that we have furnished in our letter of transmittal, which is presented in the introductory section of this report. FINANCIAL HIGHLIGHTS • The assets and deferred outflows of resources of the City exceeded liabilities and deferred inflows of resources at the close of the most recent fiscal year by $70,878,113 (net position). Of this amount, $16,810,755 (unrestricted net position) may be used to meet the City's ongoing obligations to citizens and creditors. • The City's total net position increased by $3,028,720 in 2025. • As of the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of $11,631,473. Of this total amount, $60,983 is nonspendable and $2,460,293 is restricted, leaving an unrestricted (committed, assigned, and unassigned) balance of $9,110,197. • At the end of the current fiscal year, the General Fund has a total fund balance of $4,222,107. As of December 31, 2025, the unassigned fund balance of the General Fund was $4,051,711, or 55.8 percent, of the subsequent year's budgeted expenditures. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. The City's basic financial statements include three components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to basic financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government -Wide Financial Statements — The government -wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private sector business. The Statement of Net Position presents information on all of the City's assets, liabilities, and deferred inflows/outflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The Statement of Activities presents information showing how the City's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned, but unused vacation leave). -5- Both of the government -wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the City include general government, public safety, public works, parks and recreation, and economic development. The business -type activities of the City include water, sewer, surface water management, and recycling. The government -wide financial statements can be found in the financial section following this report. Fund Financial Statements — A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other states and local governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. All of the funds of the City can be divided into two categories: governmental funds and proprietary funds. Governmental Funds — Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental funds financial statements focus on near -term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a city's near -term financing requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long-term impact of the government's near -term financing decisions. Both the governmental funds Balance Sheet and Statement of Revenues, Expenditures, and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City reports three individual major governmental funds. Information is presented separately in the governmental funds Balance Sheet and Statement of Revenues, Expenditures, and Changes in Fund Balances for the General Fund, Permanent Improvement Revolving Fund, and Public Safety Capital Equipment Fund, which are considered to be major funds. Data from all other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. The City adopts an annual appropriated budget for its General Fund and special revenue funds. A budgetary comparison schedule has been provided for these funds to demonstrate compliance with the budget. The basic governmental funds financial statements can be found in the financial section of this report immediately following the government -wide financial statements. IRE Proprietary Funds — The City maintains two different types of proprietary funds. Proprietary funds provide the same type of information as the government -wide financial statements, only in more detail. Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial statements. The City uses enterprise funds to account for its water, sewer, surface water management, and recycling operations. Water, sewer, and surface water management are considered to be major funds of the City. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City maintains internal service funds for risk management, engineering, central garage, and technology. Because these services predominately benefit governmental rather than business -type functions, they have been included within governmental activities in the government -wide financial statements. The proprietary funds financial statements can be found in the financial section of this report immediately following the governmental funds statements. Notes to Basic Financial Statements — The notes to basic financial statements provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to basic financial statements can be found following the proprietary funds statements within the financial section of this report. Other Information — In addition to the basic financial statements and accompanying notes, the financial section also presents required supplementary information, and the combining and individual fund statements and schedules (presented as supplementary information) referred to earlier in connection with nonmajor governmental funds and internal service funds, which are presented immediately following the basic financial statements. Further, a statistical section has been included as part of the ACFR to facilitate additional analysis and is the third and final section of the report. GOVERNMENT -WIDE FINANCIAL ANALYSIS An analysis of the City's financial position begins with a review of the Statement of Net Position and the Statement of Activities. These two statements report the City's net position and changes in net position. It should be noted that the financial position can also be affected by nonfinancial factors, including economic conditions, population growth, and new regulations. As noted earlier, net position may serve over time as a useful indicator of the City's financial position. As presented in the following condensed version of the Statement of Net Position, the City's assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $70,878,113 on December 31, 2025. The largest portion of the City's net position, $51,686,862, or 72.9 percent, reflects its net investment in capital assets (e.g., land, construction in progress, buildings and structures, infrastructure and improvements, distribution and collection systems, machinery and equipment, office furniture and equipment, and vehicles) less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources; since the capital assets themselves cannot be used to liquidate these liabilities. -7- The following table provides the City's Summary of Net Position: Table 1 Summary of Net Position as of December 31, 2025 and 2024 Governmental Business -Type Activities Activities Total 2025 2024 2025 2024 2025 2024 Assets Current and other assets $ 20,876,749 $ 14,219,437 $ 7,281,825 $ 7,376,687 $ 28,158,574 $ 21,596,124 Capital assets 31,681,785 31,712,214 22,268,218 21,194,544 53,950,003 52,906,758 Total assets $ 52,558,534 $ 45,931,651 $ 29,550,043 $ 28,571,231 $ 82,108,577 $ 74,502,882 Deferred outflows of resources $ 145,587 $ 148,140 $ 95,771 $ 100,667 $ 241,358 $ 248,807 Liabilities Other liabilities $ 2,870,732 $ 2,921,349 $ 804,752 $ 423,562 $ 3,675,484 $ 3,344,911 Long-term liabilities outstanding 3,689,094 655,217 1,544,394 1,837,344 5,233,488 2,492,561 Total liabilities $ 6,559,826 $ 3,576,566 $ 2,349,146 $ 2,260,906 $ 8,908,972 $ 5,837,472 Deferred inflows ofresources $ 2,351,532 $ 798,530 $ 211,318 $ 266,294 $ 2,562,850 $ 1,064,824 Net position Net investment in capital assets $ 30,984,388 $ 29,966,362 $ 20,702,474 $ 19,805,933 $ 51,686,862 $ 49,772,295 Restricted 2,380,496 1,506,861 — — 2,380,496 1,506,861 Unrestricted 10,427,879 10,231,472 6,382,876 6,338,765 16,810,755 16,570,237 Total net position $ 43,792,763 $ 41,704,695 $ 27,085,350 $ 26,144,698 $ 70,878,113 $ 67,849,393 Restricted net position of $2,380,496 comprises 3.4 percent of net position at the close of the fiscal year ended December 31, 2025. These resources are subject to external restrictions on how they may be used. The balance of unrestricted net position, $16,810,755, or approximately 23.7 percent, may be used to meet the City's ongoing obligations to citizens and creditors. Certain balances within unrestricted net position may have internally imposed commitments or limitations, which may further limit the purpose for which such net position may be used. At the end of the current fiscal year, the City is able to report positive balances in all three categories of net position, both for the government as a whole, as well as for its separate governmental and business -type activities. The same situation held true for the prior fiscal year. Both governmental activities and business -type activities experienced changes in deferred outflows of resources, deferred inflows of resources, and long-term liabilities as a result of the City's participation in a state-wide defined benefit pension plan. Governmental activities reported an increase in current and other assets and in long-term liabilities outstanding compared to the prior year. This was largely due to the issuance of debt for the City's portion of a new fire station within city limits and an associated asset for the investment in joint powers of the newly created Lake Johanna Fire Department Headquarters with the cities of Shoreview and North Oaks. 191 The following table provides a condensed version of the Statement of Activities for the year ended December 31, 2025, with comparative amounts for the year ended December 31, 2024: Table 2 Changes in Net Position Years Ended December 31, 2025 and 2024 Governmental Business -Type Activities Activities Total 2025 2024 2025 2024 2025 2024 Revenues Program revenues Charges for services $ 1,474,379 $ 805,282 $ 6,685,067 $ 6,290,760 $ 8,159,446 $ 7,096,042 Operating grants and contributions 675,463 333,628 53,425 42,325 728,888 375,953 Capital grants and contributions 1,475,591 1,275,811 296,228 250,294 1,771,819 1,526,105 General revenues General property taxes 5,814,797 5,364,181 - - 5,814,797 5,364,181 Tax increments (abatements) - (15,968) - - - (15,968) Franchise taxes 483,419 85,074 - - 483,419 85,074 Earnings on investments 558,353 545,643 313,258 282,404 871,611 828,047 Total revenues 10,482,002 8,393,651 7,347,978 6,865,783 17,829,980 15,259,434 Expenses General government 1,602,925 1,662,855 - - 1,602,925 1,662,855 Public safety 3,594,695 3,305,431 - - 3,594,695 3,305,431 Public works 1,858,891 1,445,074 - - 1,858,891 1,445,074 Parks and recreation 1,334,792 1,061,167 - - 1,334,792 1,061,167 Economic development 140,148 364,361 - - 140,148 364,361 Interest and fiscal charges 162,483 - - - 162,483 - Water - - 2,992,669 2,558,358 2,992,669 2,558,358 Sewer - - 2,131,855 1,982,052 2,131,855 1,982,052 Surface water management - - 721,145 678,340 721,145 678,340 Recycling - - 261,657 168,958 261,657 168,958 Total expenses 8,693,934 7,838,888 6,107,326 5,387,708 14,801,260 13,226,596 Increase in net position before transfers 1,788,068 554,763 1,240,652 1,478,075 3,028,720 2,032,838 Transfers 300,000 300,000 (300,000) (300,000) - - Increase in net position 2,088,068 854,763 940,652 1,178,075 3,028,720 2,032,838 Netposition- beginning 41,704,695 40,849,932 26,144,698 24,966,623 67,849,393 65,816,555 Netposition- ending $ 43,792,763 $ 41,704,695 $ 27,085,350 $ 26,144,698 $ 70,878,113 $ 67,849,393 Governmental Activities - Current year operating results of governmental activities increased net position by $2,088,068, compared to an increase of $854,763 in the prior year. Revenues were up in the current year, largely with the City Council approved increase in the City tax levy and new franchise taxes with the approval of a new electric franchise fee. Expanded development in the City also contributed to increases in revenues. Expenses were up over the prior year with natural inflationary increases, more contract spending on public safety, expanded spending on parks and recreation, and fiscal charges with new debt issued in the current year. Debt was issued for a new fire station as part of the City's membership in the joint power agreement for fire protection services. Business -Type Activities - Current year operating results of business -type activities increased net position by $940,652, due to overall positive results of the utility operations of the City and earnings on investments. Program revenues exceeded program expenses in total for the City's business -type activities. Expenses increased over the prior year with the largest increase in water utility operation costs and inflationary increases in the remaining utility functions. In Below are specific graphs that provide comparisons of the governmental activities' revenue and expenses: Governmental Activities —Revenue Earnings on Investments Charges for Q.-A- Franchise Taxe 5% General Property Takes 56% Operating Grants and contributions 6% Capital Grants and Contributions 14% Governmental Activities— Expenses Interest on Economic Long -Term Development Debt Parks and 2% 1)0/ Genem] Recrea 1501 Public Works 21% emment 19% blic Safety 41% 0n Below are specific graphs that provide comparisons of the business -type activities' revenue and expenses: Business -Type Activities — Revenue Capital Grants and Contributions Operating 4% Grants and Contributions 1% Earnings on 4% Charges for Services 91% Business -Type Activities — Expenses Surface Water Management Recycling 1 poi 4°/ Sewer 35% Water 49% -11- FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. Governmental Funds — The focus of the City's governmental funds is to provide information on near -term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of $11,631,473, an increase of $2,175,100 in comparison with the prior year. Committed, assigned, and unassigned fund balance, which are available for spending at the government's discretion, have a total balance of $9,110,197 at year-end. The remainder of fund balance is nonspendable or restricted to indicate that it is not available for new spending because it has already been obligated: 1) for tax increment purposes ($1,272,627), 2) for debt service ($494,721), 3) for park improvements ($692,945), or 4) is not in spendable form for prepaid items ($60,983). The General Fund is the chief operating fund of the City. At the end of the current fiscal year, unassigned fund balance of the General Fund was $4,051,711, while total fund balance equaled $4,222,107. As a measure of the General Fund's liquidity, it may be useful to compare the unassigned fund balance to expenditures. Unassigned fund balance represents 55.8 percent of the total subsequent year's General Fund expenditures. General Fund revenues exceeded the current year's expenditures. The City Council approved a transfer to the Cable Special Revenue Fund of $50,000 to help support operations. After making this transfer in the current year, the fund balance of the City's General Fund increased by $901,344 compared to a decrease of $312,009 anticipated in the final budget. A discussion of these actual results, compared to budget, is presented later in this report. Fund balance in the Permanent Improvement Revolving Fund decreased by $165,847 in the current year. The expenditures within the fund will fluctuate based on the timing and completion of street and trail projects. Revenue tends to be more consistent from year to year, as the City utilizes an annual levy that is accumulated over several years, along with other funding sources to complete larger capital -related projects. The current year revenues of taxes, special assessments, grants, investments, and other sources were exceeded by capital spending for public works and parks and recreation in the current year. Fund balance in the Public Safety Capital Equipment Fund increased by $228,751 in the current year. Activity was up in the current year with issuance of bond proceeds that the City contributed to their joint power fire department for their portion of the construction of a new fire station within the City. Proprietary Funds — The City's proprietary funds provide the same type of information found in the government -wide financial statements, but in more detail. Unrestricted net position in the respective proprietary funds includes: $3,062,215 for water, $1,707,514 for sewer, $1,286,083 for surface water management, and $327,064 for recycling. Water net position decreased $8,520, sewer net position increased $604,224, surface water management net position increased $283,751, and recycling net position increased $61,197 during the year. -12- GENERAL FUND BUDGETARY HIGHLIGHTS Total General Fund revenues were $647,345 over the amount estimated in the final budget. Licenses and permits were $411,720 over budget as development activity was more than anticipated in the current year. Charges for service were $144,198 over budget due to current year development activity driving higher levels for planning fees. Investment earnings were over budget by $214,255, due to conservative budgeting. Expenditures were less than approved in the final budget by $566,008, largely due to conservative budgeting and effective budget management. During the year, one budget adjustment was approved to modify the original budget, increasing the operating budget for police and animal control by $190,000. CAPITAL ASSETS AND LONG-TERM LIABILITIES Capital Assets — The City's investment in capital assets for its governmental and business -type activities as of December 31, 2025, amounts to $53,950,003 (net of accumulated depreciation). This investment in capital assets includes items such as land, construction in progress, buildings and structures, infrastructure and improvements, distribution and collection systems, machinery and equipment, office furniture and equipment, and vehicles. Table 3 Capital Assets (Net of Depreciation) Governmental Business -Type Activities Activities Total 2025 2024 2025 2024 2025 2024 Land $ 2,669,467 $ 2,669,467 $ — $ — $ 2,669,467 $ 2,669,467 Construction in progress 1,054,115 5,334,149 1,319,017 1,690,447 2,373,132 7,024,596 Buildings and structures 4,375,051 3,431,508 372,429 413,973 4,747,480 3,845,481 Infrastructure and improvements 21,988,734 18,982,725 — — 21,988,734 18,982,725 Distribution and collection systems — — 20,362,648 18,863,059 20,362,648 18,863,059 Machinery and equipment 299,447 336,032 214,124 227,065 513,571 563,097 Office furniture and equipment — — — — — — Vehicles 1,294,971 958,333 — — 1,294,971 958,333 Total $ 31,681,785 $ 31,712,214 $ 22,268,218 $ 21,194,544 $ 53,950,003 $ 52,906,758 Increases in the current year included ongoing projects for park improvements, pedestrian trails, streets, and related utility infrastructure contributing to the changes in the table above as of year-end. Additional information on the City's capital assets can be found in Note 4 of the notes to basic financial statements. -13- Long -Term Liabilities — At the end of the current fiscal year, the City had total bonded debt outstanding of $3,975,000, which is secured by specified revenue sources. Table 4 Outstanding Debt Summary of Long -Term Debt Governmental Business -Type Activities Activities Total 2025 2024 2025 2024 2025 2024 Capital improvement plan bonds $ 2,895,000 $ — $ — $ — $ 2,895,000 $ — Utility revenue bonds — — 1,080,000 1,325,000 1,080,000 1,325,000 Premium 165,188 — 48,054 63,611 213,242 63,611 Compensated absences 122,096 103,919 82,948 74,102 205,044 178,021 Net pension liability 506,810 551,298 333,392 374,631 840,202 925,929 Total $ 3,689,094 $ 655,217 $ 1,544,394 $ 1,837,344 $ 5,233,488 $ 2,492,561 State statutes limit the amount of net debt a Minnesota city may issue to 3 percent of total estimated market value. Capital improvement plan bonds increased with the bond issued in the current year for the new fire station as previously discussed. Utility revenue bonds decreased as anticipated with scheduled bond payments. The decrease in the net pension liability, compared to the prior year, was due to the change in the City's proportionate share of pension obligations for the Public Employees Retirement Association — General Employees Retirement Fund state-wide pension plan. Additional information on the City's long-term liabilities can be found in Note 5 of the notes to basic financial statements. ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES • Dramatic increases in local government aids and other state sources are not anticipated based on legislation at the time of writing this report. • Property tax collection rates are expected to remain strong, at or near the 2025 level. • The City adopted a balanced budget for the General Fund for the 2026 fiscal year. • All of these factors were considered in preparing the City's budget for the 2026 fiscal year. REQUESTS FOR INFORMATION This ACFR is designed to provide a general overview of the City's finances for all those with an interest in the City's finances. Questions concerning any of the information provided in this report, or requests for additional financial information, should be addressed to the finance department, 1245 West Highway 96, Arden Hills, Minnesota 55112. -14- BASIC FINANCIAL STATEMENTS CITY OF ARDEN HILLS Statement of Net Position as of December 31, 2025 Assets Cash and investments Accrued interest receivable Accounts receivable Taxes receivable Special assessments receivable Leases receivable Due from other governmental units Prepaid items Inventory Investment in joint ventures Capital assets Nondepreciable Depreciable, net of accumulated depreciation Total assets Deferred outflows of resources Pension plan deferments - PERA Liabilities Accounts payable Salaries payable Deposits payable Due to other governmental units Accrued interest payable Unearned revenue Long-term liabilities (bonds and compensated absences) Due within one year Due in more than one year Net pension liability Due in more than one year Total liabilities Deferred inflows of resources Pension plan deferments - PERA Lease revenues for subsequent years Total deferred inflows of resources Net position Net investment in capital assets Restricted for Tax increment purposes Debt service Park improvements Unrestricted Total net position Governmental Business -Type $ 13,922,046 61,495 161,326 40,504 985,718 2,030,293 726,604 62,371 2,886,392 $ 5,479,519 27,728 1,735,285 23,707 15,586 $ 19,401,565 89,223 1,896,611 40,504 985,718 2,030,293 750,311 62,371 15,586 2,886,392 3,723,582 1,319,017 5,042,599 27,958,203 20,949,201 48,907,404 52,558,534 29,550,043 82,108,577 145,587 95,771 241,358 195,468 525,646 721,114 154,306 - 154,306 1,383,872 2,000 1,385,872 994,153 261,439 1,255,592 79,797 15,667 95,464 63,136 - 63,136 91,571 317,211 408,782 3,090,713 893,791 3,984,504 506,810 333,392 840,202 6,559,826 2,349,146 8,908,972 321,239 211,318 532,557 2,030,293 - 2,030,293 2,351,532 211,318 2,562,850 30,984,388 20,702,474 51,686,862 1,272,627 - 1,272,627 414,924 - 414,924 692,945 - 692,945 10,427,879 6,382,876 16,810,755 $ 43,792,763 $ 27,085,350 $ 70,878,113 See notes to basic financial statements -15- CITY OF ARDEN HILLS Statement of Activities Year Ended December 31, 2025 Net (Expense) Revenue and Program Revenues Changes in Net Position Operating Capital Charges for Grants and Grants and Governmental Business -Type Expenses Services Contributions Contributions Activities Activities Total Functions/programs Primary government Governmental activities General government $ 1,602,925 Public safety 3,594,695 Public works 1,858,891 Parks and recreation 1,334,792 Economic development 140,148 Interest and fiscal charges 162,483 Total governmental activities 8,693,934 Business -type activities $ 256,512 $ 181,288 1,131,289 354,310 5,760 133,960 80,818 3,030 - 2,875 1,474,379 675,463 $ - $ (1,165,125) $ 14,547 (2,094,549) 982,648 (736,523) 478,396 (772,548) - (137,273) - (162,483) 1,475,591 (5,068,501) Water 2,992,669 2,740,879 3,446 170,870 Sewer 2,131,855 2,667,875 (479) 125,358 Surface water management 721,145 1,018,879 (340) - Recycling 261,657 257,434 50,798 - Total business -type activities 6,107,326 6,685,067 53,425 296,228 Total primary government $ 14,801,260 $ 8,159,446 $ 728,888 $ 1,771,819 General revenues General property taxes Franchise taxes Earnings on investments Transfers Total general revenues and transfers Change in net position Net position - beginning Net position - ending $ (1,165,125) (2,094,549) (736,523) (772,548) (137,273) (162,483) (5,068,501) (77,474) (77,474) 660,899 660,899 - 297,394 297,394 - 46,575 46,575 - 927,394 927,394 (5,068,501) 927,394 (4,141,107) 5,814,797 - 5,814,797 483,419 - 483,419 558,353 313,258 871,611 300,000 (300,000) - 7,156,569 13,258 7,169,827 2,088,068 940,652 3,028,720 41,704,695 26,144,698 67,849,393 $ 43,792,763 $ 27,085,350 $ 70,878,113 See notes to basic financial statements - l fi- CITY OF ARDEN HILLS Balance Sheet Governmental Funds as of December 31, 2025 Permanent Public Safety Other Total Improvement Capital Governmental Governmental General Revolving Equipment Funds Funds Assets Cash and investments $ 6,127,641 $ 3,226,709 $ 647,806 $ 3,673,111 $ 13,675,267 Accrued interest receivable 30,779 15,888 3,190 10,603 60,460 Accounts receivable 19,623 - 6,307 135,396 161,326 Taxes receivable 40,504 - - - 40,504 Special assessments receivable 3,628 982,090 - - 985,718 Interfund receivable - - - 74,417 74,417 Leases receivable 2,030,293 - - - 2,030,293 Due from other governmental units 8,176 718,428 - - 726,604 Prepaid items 8,300 - - 12,683 60,983 Total assets $ 8,308,944 $ 4,943,115 $ 657,303 $ 3,906,210 $ 17,815,572 Liabilities Accounts payable $ 145,013 $ 13,279 $ 19,346 $ 12,505 $ 190,143 Salaries payable 154,306 - - - 154,306 Deposits payable 1,383,872 - - - 1,383,872 Interfund payable - - - 74,417 74,417 Due to other governmental units 266,085 697,397 - 527 964,009 Unearned revenue 63,136 - - - 63,136 Total liabilities 2,012,412 710,676 19,346 87,449 2,829,883 Deferred inflows of resources Unavailable revenue - taxes 40,504 - - - 40,504 Unavailable revenue - special assessments 3,628 960,081 - - 963,709 Unavailable revenue - long-term receivables - 319,710 - - 319,710 Lease revenues for subsequent years 2,030,293 - - - 2,030,293 Total deferred inflows of resources 2,074,425 1,279,791 - - 3,354,216 Fund balances (deficits) Nonspendable 48,300 - - 12,683 60,983 Restricted - - - 2,460,293 2,460,293 Committed - - - 819,179 819,179 Assigned 122,096 2,952,648 637,957 772,992 4,485,693 Unassigned 4,051,711 - - (246,386) 3,805,325 Total fund balances 4,222,107 2,952,648 637,957 3,818,761 11,631,473 Total liabilities, deferred inflows of resources, and fund balances $ 8,308,944 $ 4,943,115 $ 657,303 $ 3,906,210 $ 17,815,572 See notes to basic financial statements -17- CITY OF ARDEN HILLS Reconciliation of the Balance Sheet to the Statement of Net Position Governmental Funds as of December 31, 2025 Total fund balances — governmental funds Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. Nondepreciable Depreciable, net of accumulated depreciation Internal service funds are used to allocate costs to individual funds. Net position is included in governmental activities in the Statement of Net Position. Certain long-term obligations are not payable with current financial resources and, therefore, are not reported in governmental funds. Capital improvement plan bonds Unamortized bond premium Compensated absences Net pension liability Interest on long-term debt is included in the change in net position as it accrues, regardless of when payment is due. However, it is included in the change in fund balances when due. The recognition of certain revenues and expenses/expenditures differ between the full accrual governmental activities financial statements and the modified accrual governmental fund financial statements. Deferred outflows of resources — pension plans Deferred inflows of resources — pension plans Deferred inflows of resources — unavailable revenues (taxes, special assessments, and long-term receivable) $ 11,631,473 3,723,582 27,958,203 213,733 (2,895,000) (165,188) (122,096) (506,810) (79,797) 145,587 (321,239) 1,323,923 The City's investment in a joint venture is not a current financial resource and, therefore, is not reported as an asset in the governmental funds, but is included in the Statement of Net Position. 2,886,392 Net position of governmental activities $ 43,792,763 See notes to basic financial statements -18- CITY OF ARDEN HILLS Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds Year Ended December 31, 2025 Permanent Public Safety Other Total Improvement Capital Governmental Governmental General Revolving Equipment Funds Funds Revenues Property taxes General property taxes $ 5,201,278 $ 250,000 $ 260,000 $ 104,351 $ 5,815,629 Special assessments - 309,728 - - 309,728 Licenses and permits 962,260 - - - 962,260 Intergovernmental 134,054 590,650 724,704 Charges for services 512,119 - - - 512,119 Fines and forfeits 27,610 - - - 27,610 Earnings on investments 264,255 154,676 30,401 100,034 549,366 Franchise taxes - - - 483,419 483,419 Antenna lease rental fees 127,828 - - - 127,828 Miscellaneous reimbursements 26,931 - - - 26,931 Other 30,280 10,000 14,547 472,332 527,159 Total revenues 7,286,615 1,315,054 304,948 1,160,136 10,066,753 Expenditures Current General government 1,380,065 137,969 1,518,034 Public safety 3,208,572 - 2,962,502 - 6,171,074 Public works 723,346 - - - 723,346 Parks and recreation 1,023,288 - - - 1,023,288 Economic development - - - 81,436 81,436 Capital outlay Public works - 844,619 - 194,858 1,039,477 Parks and recreation - 636,282 - 81,993 718,275 Debt Service Interest and fiscal charges - - - 89,370 89,370 Total expenditures 6,335,271 1,480,901 2,962,502 585,626 11,364,300 Revenues over (under) expenditures 951,344 (165,847) (2,657,554) 574,510 (1,297,547) Other financing sources (uses) Bonds issued - - 2,895,000 - 2,895,000 Premium on bonds issued - - 171,872 - 171,872 Sale of capital assets - - - 105,775 105,775 Transfers in - - - 530,567 530,567 Transfers out (50,000) - (180,567) - (230,567) Total other financing sources (uses) (50,000) - 2,886,305 636,342 3,472,647 Net changes in fund balances 901,344 (165,847) 228,751 1,210,852 2,175,100 Fund balances - beginning, as previously reported 3,320,763 3,118,495 - 3,017,115 9,456,373 Change within financial reporting entity (nomnajor to major fund) - - 409,206 (409,206) - Fund balances - beginning, as adjusted 3,320,763 3,118,495 409,206 2,607,909 9,456,373 Fund balances - ending $ 4,222,107 $ 2,952,648 $ 637,957 $ 3,818,761 $ 11,631,473 See notes to basic financial statements -19- CITY OF ARDEN HILLS Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities Governmental Funds Year Ended December 31, 2025 Net changes in fund balances — total governmental funds $ 2,175,100 Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures. However, in the Statement of Activities those costs are allocated over their estimated useful lives and reported as depreciation expense. Capital outlay 1,143,156 Depreciation expense (1,109,284) A gain or loss on the disposal of capital assets, including the difference between the carrying value and any related sale proceeds, is included in the change in net position. However, only the sale proceeds are included in the change in fund balance. Net book value of capital assets disposed (64,301) Adjustments are de between the governmental funds and the Statement of Activities for the long-term liability activity of the net pension liability. 44,488 The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any affect on net position. Other long-term adjustments are also made between the governmental funds and the Statement of Activities for debt premiums and compensated absences. Bonds issued (2,895,000) Unamortized bond premiums (165,188) Compensated absences (18,177) Interest on long-term debt in the Statement of Activities differs from the amount reported in the governmental funds because interest is recognized as an expenditure in the funds when it is due, and thus requires the use of current financial resources. In the Statement of Activities, however, interest expense is recognized as the interest accrues, regardless of when it is due. (79,797) The recognition of certain revenues and expenses/expenditures differ between the full accrual governmental activities and the modified accrual governmental fund financial statements. Deferred outflows of resources — pension plans (2,553) Deferred inflows of resources — pension plans 70,631 Deferred inflows of resources — unavailable revenues 81,438 Internal service funds are used to allocate costs to individual funds. The net revenue of the internal service funds is reported with governmental activities in the government -wide financial statements. 21,163 The City's investment in a joint venture is not a current financial resource and, therefore, is not reported as an asset in the governmental funds, but is included in the Statement of Net Position. Change in investment in joint venture 2,886,392 Change in net position of governmental activities $ 2,088,068 See notes to basic financial statements -20- Assets Current assets Cash and investments Accrued interest receivable Accounts receivable Customers Customer accounts certified to county Due from other governments Prepaid items Inventory Total current assets Noncurrent assets Capital assets Construction in progress Buildings and structures Distribution and collection systems Machinery and equipment Total capital assets Less accumulated depreciation Total capital assets (net of accumulated depreciation) Total assets Deferred outflows of resources Pension plan deferments - PERA Liabilities Current liabilities Accounts and contracts payable Deposits payable Due to other governmental units Accrued interest payable Bonds payable Compensated absences payable Total current liabilities Noncurrent liabilities Bonds payable (net of premium) Compensated absences payable Net pension liability Total noncurrent liabilities Total liabilities Deferred inflows of resources Pension plan deferments - PERA Net position Net investment in capital assets Unrestricted Total net position CITY OF ARDEN HILLS Statement of Net Position Proprietary Funds as of December 31, 2025 Business -Type Activities - Enterprise Funds Surface Internal Water Nonmajor Service Water Sewer Management Recycling Totals Funds $ 2,799,047 $ 1,203,016 $ 1,158,957 $ 318,499 $ 5,479,519 $ 246,779 14,026 6,179 5,915 1,608 27,728 1,035 661,440 718,725 261,072 - 1,641,237 - 35,907 43,681 6,617 7,843 94,048 - 1,233 - - 22,474 23,707 - - - - - - 1,388 15,586 - - - 15,586 - 3,527,239 1,971,601 1,432,561 350,424 7,281,825 249,202 57,517 1,194,850 66,650 - 1,319,017 - 818,476 16,564 - - 835,040 - 14,774,076 11,899,780 6,760,900 - 33,434,756 - 301,210 343,769 - - 644,979 - 15,951,279 13,454,963 6,827,550 - 36,233,792 - (6,815,955) (5,398,806) (1,750,813) - (13,965,574) - 9,135,324 8,056,157 5,076,737 - 22,268,218 - 12,662,563 10,027,758 6,509,298 350,424 29,550,043 249,202 32,125 37,217 26,429 - 95,771 - 32,337 472,988 18 20,303 525,646 5,325 2,000 - - - 2,000 - 239,608 20,466 1,365 - 261,439 30,144 13,563 2,104 - - 15,667 - 220,000 35,000 - - 255,000 - 20,195 23,818 15,905 2,293 62,211 - 527,703 554,376 17,288 22,596 1,121,963 35,469 756,570 116,484 - - 873,054 - 6,732 7,939 5,302 764 20,737 - 111,831 129,559 92,002 - 333,392 - 875,133 253,982 97,304 764 1,227,183 - 1,402,836 808,358 114,592 23,360 2,349,146 35,469 70,883 82,120 58,315 - 211,318 8,158,754 3,062,215 7,466,983 1,707,514 5,076,737 1,286,083 - 20,702,474 - 327,064 6,382,876 213,733 $ 11,220,969 $ 9,174,497 $ 6,362,820 $ 327,064 $ 27,085,350 $ 213,733 See notes to basic financial statements -21- CITY OF ARDEN HILLS Operating revenues Charges for services Permit fees Miscellaneous Total operating revenues Operating expenses Personal services Supplies and maintenance Other services and charges Rent Insurance Utilities Purchased services Purchased water Recycling charges Sewer charges Depreciation Total operating expenses Operating income (loss) Nonoperating revenues (expenses) Intergovernmental (pension adjustment) Earnings on investments Interest and fiscal charges Total nonoperating revenues (expenses) Income (loss) before contributions and transfers Capital contributions - connection fees Capital contributions - capital grants Transfers out Change in net position Net position Beginning of year End of year Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds Year Ended December 31, 2025 Business -Type Activities - Enterprise Funds Surface Internal Water Nonmajor Service Water Sewer Management Recycling Totals Funds $ 2,733,889 $ 2,662,197 $ 1,018,436 $ 255,089 $ 6,669,611 $ 581,437 4,860 2,818 - - 7,678 - 2,130 2,860 443 2,345 7,778 - 2,740,879 2,667,875 1,018,879 257,434 6,685,067 581,437 428,339 512,593 330,659 33,322 1,304,913 - 61,740 27,657 8,993 - 98,390 124,243 351,369 242,039 150,586 10,982 754,976 81,309 36,850 36,850 16,579 - 90,279 - 16,144 23,063 2,691 423 42,321 - 15,670 23,110 - - 38,780 - 37,605 35,828 43,297 9,163 125,893 363,709 1,643,948 - - - 1,643,948 - - - - 207,767 207,767 - - 997,473 - - 997,473 - 380,801 230,110 168,340 - 779,251 - 2,972,466 2,128,723 721,145 261,657 6,083,991 569,261 (231,587) 539,152 297,734 (4,223) 601,076 12,176 3,446 (479) (340) 50,798 53,425 - 168,954 69,325 60,357 14,622 313,258 8,987 (20,203) (3,132) - - (23,335) - 152,197 65,714 60,017 65,420 343,348 8,987 (79,390) 604,866 357,751 170,870 115,358 - - 10,000 - (100,000) (126,000) (74,000) (8,520) 604,224 283,751 61,197 944,424 21,163 286,228 - 10,000 - - (300,000) - 61,197 940,652 21,163 11,229,489 8,570,273 6,079,069 265,867 26,144,698 192,570 $ 11,220,969 $ 9,174,497 $ 6,362,820 $ 327,064 $ 27,085,350 $ 213,733 See notes to basic financial statements -22- THIS PAGE INTENTIONALLY LEFT BLANK CITY OF ARDEN HILLS Cash flows from operating activities Receipts from customers and users Payments to suppliers Payments to employees Payments for interfund services used Net cash flows from operating activities Cash flows from noncapital financing activities Grants received Transfers out Net cash flows from noncapital financing activities Cash flows from capital and related financing activities Acquisition and construction of capital assets Capital contributions - connection fees received Capital contributions - capital grants received Principal payments on bonds Interest paid Net cash flows from capital and related financing activities Cash flows from investing activities Earnings on investments Net change in cash and cash equivalents Cash and cash equivalents - beginning Cash and cash equivalents - ending Reconciliation of operating income (loss) to net cash flows from operating activities Operating income (loss) Adjustments to reconcile operating income (loss) to net cash flows from operating activities Depreciation Change in assets, deferred outflows of resources, liabilities, and deferred inflows of resources Accounts receivables Prepaid items Inventory Deferred outflows of resources Accounts payable Due to other governmental units Compensated absences payable Net pension liability Deferred inflows of resources Total adjustments Net cash flows from operating activities Noncash investing, capital, and financing activities Amortization of bond premium/discount Change in capital assets purchased on account Statement of Cash Flows Proprietary Funds Year Ended December 31, 2025 Business -Type Activities - Enterprise Funds Surface Internal Water Nonmajor Service Water Sewer Management Recycling Totals Funds $ 2,707,258 $ 2,584,871 $ 1,014,956 $ 253,131 $ 6,560,216 $ 581,437 (1,925,431) (1,245,005) (162,679) (208,925) (3,542,040) (560,725) (456,805) (543,930) (355,819) (30,832) (1,387,386) - (77,600) (80,280) (53,448) (8,150) (219,478) - 247,422 715,656 443,010 5,224 1,411,312 20,712 3,446 (479) (340) 50,798 53,425 - (100,000) (126,000) (74,000) - (300,000) - (96,554) (126,479) (74,340) 50,798 (246,575) - (778,806) (630,839) (5,590) - (1,415,235) - 170,870 115,358 - - 286,228 - - 10,000 - - 10,000 - (210,000) (35,000) - - (245,000) - (37,160) (5,816) - - (42,976) - (855,096) (546,297) (5,590) - (1,406,983) - 170,236 68,161 57,832 14,155 310,384 8,827 (533,992) 3,333,039 111,041 1,091,975 420,912 738,045 70,177 248,322 68,138 5,411,381 29,539 217,240 $ 2,799,047 $ 1,203,016 $ 1,158,957 $ 318,499 $ 5,479,519 $ 246,779 $ (231,587) $ 539,152 $ 297,734 $ (4,223) $ 601,076 $ 12,176 380,801 230,110 168,340 - 779,251 - (33,621) (83,004) (3,923) (4,303) (124,851) - 238,944 46,347 8,058 - 293,349 (263) (2,624) - - - (2,624) - 1,638 1,572 1,686 - 4,896 - 15,097 11,317 (4) 11,260 37,670 (721) (91,122) 3,071 (2,035) - (90,086) 9,520 2,144 2,372 1,840 2,490 8,846 - (13,818) (14,793) (12,628) - (41,239) - (18,430) (20,488) (16,058) - (54,976) - 479,009 176,504 145,276 9,447 810,236 8,536 $ 247,422 $ 715,656 $ 443,010 $ 5,224 $ 1,411,312 $ 20,712 $ 13,457 $ 2,100 $ $ - $ 437,690 $ $ - $ 15,557 $ - $ - $ 437,690 $ - See notes to basic financial statements -23- THIS PAGE INTENTIONALLY LEFT BLANK CITY OF ARDEN HILLS Notes to Basic Financial Statements December 31, 2025 NOTE 1— SIGNIFICANT ACCOUNTING POLICIES A. Organization The City of Arden Hills, Minnesota (the City) was incorporated in 1951 and operates under the "Optional Plan A" form of government as defined in Minnesota Statutes. Under this plan, the government of the City is directed by a council composed of an elected mayor and four elected councilmembers. The City Council exercises legislative authority and determines all matters of policy. The City Council appoints personnel responsible for the proper administration of all affairs relating to the City. The City provides the following municipal services: public safety (police, fire, civil defense, protective inspections, and animal control), highways and streets, sanitation and health, parks and recreation, public improvements, community development, and general administrative services. The accounting policies of the City conform to accounting principles generally accepted in the United States of America as applicable to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard -setting body for establishing governmental accounting and financial reporting principles. B. Reporting Entity As required by accounting principles generally accepted in the United States of America, these financial statements include the City (the primary government) and its component unit. Component units are legally separate entities for which the primary government is financially accountable, or for which the exclusion of the component unit would render the financial statements of the primary government misleading. The criteria used to determine if the primary government is financially accountable for a component unit includes whether or not the primary government appoints the voting majority of the potential component unit's board, is able to impose its will on the potential component unit, is in a relationship of financial benefit or burden with the potential component unit, or is fiscally depended upon by the potential component unit. Blended component units, although legally separate entities, are, in substance, part of the City's operations; therefore, data from these units are combined with data of the City. The City's blended component unit has a December 31 year-end. The City has the following component unit: Arden Hills Economic Development Authority (EDA) — The EDA of the City was created pursuant to Minnesota Statutes § 469.090-469.108 to carryout economic and industrial development and redevelopment consistent with policies established by the City Council. It is composed of the members of the City Council and the City has operational responsibility for the component unit. The EDA's activities are blended and reported in separate special revenue funds. Separate financial statements are not issued for this component unit. -24- NOTE 1— SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Government -Wide Financial Statement Presentation The government -wide financial statements (Statement of Net Position and Statement of Activities) display information about the reporting government as a whole. These statements include all of the financial activities of the City. Governmental activities, which are normally supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which significantly rely upon sales, fees, and charges for support. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other internally directed revenues are reported as general revenues. The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes and special assessments are recognized as revenues in the fiscal year for which they are certified for levy. Grants and similar items are recognized when all eligibility requirements imposed by the provider have been met. As a general rule, the effect of interfund activity has been eliminated from the government -wide financial statements. However, charges between the City's enterprise funds and other functions are not eliminated, as that would distort the direct costs and program revenues reported in those functions. Depreciation expense is included in the direct expenses of each function. Interest on long-term debt is considered an indirect expense and is reported separately on the Statement of Activities. D. Fund Financial Statement Presentation Separate fund financial statements are provided for governmental and proprietary funds. Major individual governmental and enterprise funds are reported as separate columns in the fund financial statements. Aggregated information for the remaining nonmajor governmental funds is reported in a single column in the fund financial statements. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this basis of accounting, transactions are recorded in the following manner: 1. Revenue Recognition — Revenue is recognized when it becomes measurable and available. "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days after year-end. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. Grants and similar items are recognized when all eligibility requirements imposed by the provider have been met. Proceeds of long-term debt are reported as other financing sources. Major revenue that is susceptible to accrual includes property taxes, special assessments, intergovernmental revenue, charges for services, franchise taxes, antenna lease rental fees, and interest earned on investments. Major revenue that is not susceptible to accrual includes licenses and permits, fees, fines and forfeits, and miscellaneous revenue. Such revenue is recorded only when received because it is not measurable until collected. -25- NOTE 1— SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2. Recording of Expenditures — Expenditures are generally recorded when a liability is incurred, except for principal and interest on long-term debt and other long-term obligations, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as capital outlay expenditures in the governmental funds. Proprietary fund financial statements are reported using the economic resources measurement focus and accrual basis of accounting, similar to the government -wide financial statements. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the City's enterprise funds and internal service funds are charges to customers for sales and services. The operating expenses for the enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses that do not meet this definition are reported as nonoperating revenues and expenses. Aggregated information for the internal service funds is reported in a single column in the proprietary fund financial statements. Because the principal user of the internal services is the City's governmental activities, the financial statements of the internal service funds are consolidated into the governmental column when presented in the government -wide financial statements. The cost of these services is reported in the appropriate functional activity. Description of Funds The City reports the following major governmental funds: General Fund — The General Fund is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. Permanent Improvement Revolving Fund — The Permanent Improvement Revolving Fund (capital project fund) accounts for the acquisition of capital assets or construction for major capital projects not being financed by proprietary funds. Public Safety Capital Equipment Fund — This fund was established to account for resources designated to be used for the City's share of public safety equipment through contracts with the Lake Johanna Volunteer Fire Department, Inc. (the Department) and the Ramsey County Sheriff's Department. The City reports the following major enterprise funds: Water Fund — The Water Fund accounts for the water service charges, which are used to finance the water system operations. Sewer Fund — The Sewer Fund accounts for the sewer service charges, which are used to finance the sanitary sewer system operations. Surface Water Management Fund — The Surface Water Management Fund accounts for the surface water charges, which are used to finance the surface water system operations. The City reports the following nonmajor enterprise fund: Recycling Fund — The Recycling Fund accounts for the recycling service charges, which are used to finance the City's recycling operations. -26- NOTE 1— SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Additionally, the City reports the following fund type: Internal Service Funds — The internal service funds account for the financing of goods or services provided by one department or agency to other departments or agencies of the City, or to other governments on a cost -reimbursement basis. The City's internal service funds account for risk management, engineering, central garage, and technology services. E. Budgets and Budgetary Accounting Budgets are legally adopted on a basis consistent with accounting principles generally accepted in the United States of America. Annual appropriated budgets are legally adopted for the General Fund and special revenue funds. Budgeted expenditure appropriations lapse at year-end, but may be adopted in the subsequent year. The City follows these procedures in establishing the budgetary data reflected in the financial statements: 1. The city administrator submits to the City Council a proposed operating budget for the fiscal year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them. 2. Public hearings are conducted to obtain taxpayer comments. The budget is legally enacted through passage of a resolution. The appropriated budget is prepared by fund, function, and department. The City's department heads, with the approval of the city administrator, may make transfers of appropriations within a department. Transfers of appropriations between funds require the approval of the City Council. The legal level of budgetary control is the fund level. Budgeted amounts are as amended by the City Council. 4. The city administrator is authorized to transfer appropriations within any fund budget. Adjustments to appropriations between funds, and budget additions and deletions must be authorized by the City Council. 5. Formal budgetary integration is employed as a management control device during the year for the General Fund and special revenue funds. 6. Legal debt obligation indentures determine the appropriation level and debt service tax levies for the Debt Service Fund (if necessary). Supplementary budgets are adopted for the proprietary funds to determine and calculate user charges. These debt service and budget amounts represent general obligation bond indenture provisions and net income for operation and capital maintenance, and are not reflected in the financial statements. 7. A capital improvement program is reviewed annually by the City Council for the capital project funds. However, appropriations for major projects are not adopted until the actual bid award of the improvement. Budgetary control for capital projects funds is accomplished through the use of project controls, not legally enacted budgets. The appropriations are not reflected in the financial statements. For the year ended December 31, 2025, actual expenditures exceeded budgeted expenditures in the EDA TIF District No. 3 Special Revenue Fund by $14,157, in the EDA TIF District No. 4 Special Revenue Fund by $1,039, and in the EDA TIF District No. 5 Special Revenue Fund by $108. -27- NOTE 1— SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) F. Cash and Investments Cash and investments include balances that are combined and invested to the extent available in various securities as authorized by state law. Allocations of pooled investment earnings to the respective funds is based on participation by each fund. For purposes of the Statement of Cash Flows, the City considers all highly liquid debt instruments with an original maturity from the time of purchase by the City of three months or less to be cash equivalents. The proprietary funds' portion in the government -wide cash and investment management pool is considered to be cash equivalent. The City generally reports investments at fair value. The Minnesota Municipal Money Market (4M) Fund is an external investment pool regulated by Minnesota Statutes that is not registered with the Securities and Exchange Commission (SEC), but follows the same regulatory rules of the SEC. The fair value of the position in the pool is the same as the value of the pool shares, which is based on an amortized cost method that approximates fair value. The 4M Fund is sponsored by the League of Minnesota Cities. For this investment pool, there are no unfunded commitments, redemption frequency is daily, and there is no redemption notice required for the Liquid Class; the redemption notice period is 14 days for the Plus Class. The City categorizes its fair value measurements within the fair value hierarchy established by accounting principles generally accepted in the United States of America. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs. Debt securities classified in Level 2 of the fair value hierarchy are valued using a matrix pricing technique. Matrix pricing is used to value securities based on the securities' relationship to benchmark quoted prices. See Note 2 for the City's recurring fair value measurements as of year-end. G. Interfund Receivables and Payables During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. Short-term interfund loans are classified as "interfund receivables/payables." All short-term interfund receivables and payables at year-end are planned to be eliminated in the subsequent year. Long-term interfund loans are classified as "advances receivable/payable." Any residual balances outstanding between the governmental activities and business -type activities are reported in the government -wide financial statements as "internal balances." H. Receivables Property taxes and special assessments receivable have been reported net of estimated uncollectible accounts (see Note 1 I. and J.). Because utility bills are considered liens on property, no estimated uncollectible amounts are established. Uncollectible amounts are not material for other receivables and have not been reported. The only receivables not expected to be collected within one year are taxes, special assessments, certain long-term receivables, and leases. No NOTE 1— SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) I. Property Taxes Property tax levies are set by the City Council in December of each year, and are certified to Ramsey County for collection in the following year. In Minnesota, counties act as collection agents for all property taxes. The county spreads the levies over all taxable property. Such taxes become a lien on January 1 and are recorded as receivables by the City on that date. Real property taxes may be paid by taxpayers in two equal installments on May 15 and October 15. Personal property taxes are due in full on May 15. The county provides tax settlements to cities and other taxing districts three times a year: in July, December, and January. Property taxes are recognized as revenue in the year levied in the government -wide financial statements and proprietary fund financial statements. In the governmental fund financial statements, taxes are recognized as revenue when received in cash or within 60 days after year-end. Taxes which remain unpaid on December 31 are classified as delinquent taxes receivable, and are offset by a deferred inflow of resources in the governmental fund financial statements, because they are not available to finance current expenditures. No allowance for uncollectible taxes has been provided because such amounts are not expected to be material. J. Special Assessments Receivable Special assessments primarily represent the financing for public improvements paid for by benefiting property owners. As previously mentioned under receivables, the City is also generally able to certify delinquent amounts to the county for collection as special assessments. Special assessments are recorded as receivables upon certification to the county. Special assessments are recognized as revenue in the year levied in the government -wide financial statements and proprietary fund financial statements. In the governmental fund financial statements, special assessments are recognized as revenue when received in cash or within 60 days after year-end. Governmental fund special assessments receivable which remain unpaid on December 31 are offset by a deferred inflow of resources in the governmental fund financial statements. At year-end, the City has recorded $32,604 of delinquent special assessments receivable. K. Inventories The original cost of materials and supplies has been recorded as expenses/expenditures at the time of purchase for both the governmental and proprietary funds, with the exception of water meters in the Water Fund. These funds do not maintain material amounts of materials and supplies. The water meter inventory in the Water Fund is stated at the lower of cost or market on the first -in, first -out method. L. Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government -wide and fund financial statements. Prepaid items are reported using the consumption method and recorded as expenses/expenditures at the time of consumption. M. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items) are reported in the applicable governmental or business -type activities columns in the government -wide financial statements but are not reported in the governmental fund financial statements. Such assets are capitalized at historical cost or estimated historical cost for assets where actual historical cost is not available. Groups of similar assets acquired at or near the same time for a single objective, with individual costs below this threshold, are also capitalized if the aggregate cost of the assets is considered significant. Donated assets are recorded as capital assets at their estimated acquisition value on the date of donation. The City defines capital assets with an initial, individual cost of more than $5,000 and an estimated useful life more than one year. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not capitalized. -29- NOTE 1— SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) In the case of the initial capitalization of general infrastructure assets (i.e., those reported by governmental activities), the City chose to include items dating back to June 30, 1980. These assets are reported at historical cost. The City estimated historical cost for the initial reporting of these assets through back trending (estimating the current replacement cost and utilizing an appropriate price -level index to deflate the cost to the acquisition year). As the City constructs or acquires additional infrastructure assets each period, they will be capitalized and reported at historical cost. Property, plant, and equipment of the City are depreciated using the straight-line method over the following estimated useful lives: Buildings and structures 7-40 years Infrastructure and improvements 15-50 years Distribution and collection systems 15-50 years Machinery and equipment 5-15 years Office furniture and equipment 5-10 years Vehicles 7-20 years Land and construction in progress are not depreciated. N. Compensated Absences The City recognizes a liability for compensated absences for leave time that (1) has been earned for services previously rendered by employees, (2) accumulates and is allowed to be carried over to subsequent years, and (3) is more likely than not to be used as time off or settled (for example paid in cash to the employee or payment to an employee flex spending account) during or upon separation from employment. The liability for compensated absences is reported as incurred in government -wide and proprietary fund financial statements. A liability for compensated absences is recorded in the governmental funds only if the liability has matured because of employee resignations or retirements. The liability for compensated absences includes salary -related benefits, where applicable. It is the City's policy to permit employees to accumulate earned, but unused, PTO/ESST and Comp/Flex time. At termination of employment, employees in good standing are paid all accrued time for PTO/ESST and Comp/Flex time. O. Long -Term Obligations In the government -wide and proprietary fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business -type activities, or proprietary fund -type Statement of Net Position. Bond premiums and discounts, when material, are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount. In the fund financial statements, governmental fund -types recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources, while discounts on debt issuances are reported as other financing uses. -30- NOTE 1— SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) P. State -Wide Pension Plans For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Public Employees Retirement Association (PERA) and additions to/deductions from the PERA's fiduciary net position have been determined on the same basis as they are reported by the PERA. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments, and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Q. Deferred Outflows/Inflows of Resources In addition to assets and liabilities, statements of financial position or balance sheets may report separate financial statement elements called deferred outflows or inflows of resources. These separate financial statement elements represent a consumption or acquisition of net assets that applies to a future period and so will not be recognized as an outflow of resources (expense/expenditure) or an inflow of financial resources (revenue) until then. The City reported deferred outflows and inflows of resources related to pensions in the government -wide and proprietary funds Statement of Net Position. These deferred outflows and inflows result from differences between expected and actual economic experience, changes in actuarial assumptions, net collective difference between projected and actual investment earnings, changes in proportion, and contributions to the plan subsequent to the measurement date and before the end of the reporting period. These amounts are deferred and amortized as required under pension standards. The City reports deferred inflows of resources related to leases receivable in the government -wide Statement of Net Position and governmental funds Balance Sheet, which requires lessors to recognize deferred inflows of resources to correspond to lease receivables. These amounts are deferred and amortized in a systematic and rationale manner over the term of the lease. Unavailable revenue arises only under the modified accrual basis of accounting and, therefore, is reported only on the governmental funds Balance Sheet. The governmental funds report unavailable revenue from the following sources: property taxes, special assessment, and long-term receivables. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. R. Net Position Classifications and Flow Assumptions In the government -wide and proprietary fund financial statements, net position represents the difference between assets, deferred outflows of resources, liabilities, and deferred inflows of resources. Net position is displayed in three components: • Net Investment in Capital Assets — Consists of capital assets, net of accumulated depreciation, reduced by any outstanding debt attributable to acquire capital assets. • Restricted Net Position — Consists of net position restricted when there are limitations imposed on its use through external restrictions imposed by creditors, grantors, or laws or regulations of other governments, or enabling legislation. • Unrestricted Net Position — All other elements of net position that do not meet the definition of "restricted" or "net investment in capital assets." When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, then unrestricted resources as they are needed. -31- NOTE 1— SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) S. Fund Balance Classifications and Flow Assumptions In the governmental fund financial statements, fund balance is reported in classifications that disclose constraints for which amounts in those funds can be spent. These classifications are as follows: • Nonspendable — Consists of amounts that are not in spendable form, such as prepaid items, inventory, and other long-term assets. • Restricted — Consists of amounts where there are limitations imposed on their use through external restrictions imposed by creditors, grantors, laws, or regulations of other governments, or enabling legislation. • Committed — Consists of internally imposed constraints that are established by resolution of the City Council. Those committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use by taking the same type of action it employed to previously commit those amounts. • Assigned — Consists of internally imposed constraints for amounts intended to be used by the City for specific purposes but do not meet the criteria to be classified as restricted or committed. In governmental funds, assigned amounts represent intended uses established by the governing body itself or by an official to which the governing body delegates the authority. Pursuant to City Council resolution, the finance director and/or the city administrator are authorized to establish assignments of fund balance. • Unassigned — The residual classification for the General Fund and the only fund that reports a positive unassigned fund balance amount. Negative residual amounts in other funds are also reported as unassigned fund balance. When both restricted and unrestricted resources are available for use, it is the City's policy to first use restricted resources, then use unrestricted resources as they are needed. When committed, assigned, or unassigned resources are available for use, it is the City's policy to use resources in the following order: 1) committed, 2) assigned, and 3) unassigned. T. Use of Estimates The preparation of financial statements, in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. -32- NOTE 2 — DEPOSITS AND INVESTMENTS A. Components of Cash and Investments The City had the following cash and investments at year-end: Investment Type Credit Risk Rating Agency Fair Value Measurements Using Interest Risk — Maturity Duration in Years Less Than 1 to 5 6 to 10 1 Year Years Years Total U.S. treasuries N/A N/A Level 2 $ — $ 498,970 $ — $ 498,970 U.S. government agency securities Federal Home Loan Bank AA S&P Level 2 244,020 456,168 — 700,188 Federal Farm Credit Bank AA S&P Level 2 — 1,098,837 — 1,098,837 Municipal bonds AAA S&P Level 2 390,000 807,057 496,215 1,693,272 Municipal bonds AA S&P Level 2 — 2,694,041 1,558,230 4,252,271 Municipal bonds Aa Moody's Level 2 — 712,224 — 712,224 Municipal bonds A S&P Level 2 — 352,976 382,855 735,831 Municipal bonds A Moody's Level 2 — 913,915 391,424 1,305,339 Negotiable certificates ofdeposit N/R N/A Level 2 490,135 248,696 — 738,831 Investment pools/mutual funds 4M Fund AAA S&P Amortized Cost 7,639,172 — — 7,639,172 Wells Fargo Money Market Advantage AAA S&P Level 1 26,130 — — 26,130 Total investments $ 8,789,457 $ 7,782,884 $ 2,828,724 19,401,065 Petty cash 500 Total cash and investments $19,401,565 N/R — Not Rated N/A — Not Applicable B. Deposits In accordance with applicable Minnesota Statutes, the City maintains deposits at depository banks authorized by the City Council, including checking accounts and certificates of deposit. The following is considered the most significant risk associated with deposits: Custodial Credit Risk — In the case of deposits, this is the risk that in the event of a failure, the City's deposits may be lost. Minnesota Statutes require that all deposits be protected by federal deposit insurance, corporate surety bond, or collateral. The fair value of collateral pledged must equal 110 percent of the deposits not covered by federal deposit insurance or corporate surety bonds. Authorized collateral includes treasury bills, notes, and bonds; issues of U.S. government agencies; general obligations rated "A" or better; revenue obligations rated "AA" or better; irrevocable standard letters of credit issued by the Federal Home Loan Bank; and certificates of deposit. Minnesota Statutes require that securities pledged as collateral be held in safekeeping in a restricted account at the Federal Reserve Bank or in an account at a trust department of a commercial bank or other financial institution that is not owned or controlled by the financial institution furnishing the collateral. The City has no additional deposit policies addressing custodial credit risk. At year-end, the carrying amount of the City's deposits and the bank balance was $0, with the use of a depository sweep account. Any bank balance during the year was covered by federal deposit insurance, surety bonds, or by collateral held by the City's agent in the City's name. -33- NOTE 2 — DEPOSITS AND INVESTMENTS (CONTINUED) C. Investments Investments are subject to various risks, the following of which are considered the most significant: Custodial Credit Risk — For investments, this is the risk that in the event of a failure of the counterparty to an investment transaction (typically a broker -dealer), the City would not be able to recover the value of its investments or collateral securities that are in the possession of an outside parry. The City's investment policies do not further address this risk, but typically limits its exposure by purchasing insured or registered investments, or by the control of who holds the securities. Interest Rate Risk — This is the risk of potential variability in the fair value of fixed rate investments resulting from changes in interest rates (the longer the period for which an interest rate is fixed, the greater the risk). The City's investment policies do not mandate a limit on the duration of investments. Concentration Risk — This is the risk associated with investing a significant portion of the City's investment (considered 5.0 percent or more) in the securities of a single issuer, excluding United States guaranteed investments (such as treasuries), investment pools, and mutual funds. The City's investment policies state that no more than 5.0 percent of the overall portfolio may be invested in the securities of a single issuer, except for the securities of the United States government, or a maximum of 25.0 percent with any individual counterparty in an external investment pool. On December 31, 2025, the City's investment in Federal Farm Credit Bank and California State Municipal Bonds represented 5.7 percent and 5.4 percent, respectively, of the total investments of the City. Credit Risk — This is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Minnesota Statutes limit the City's investments to direct obligations or obligations guaranteed by the United States or its agencies; shares of investment companies registered under the Federal Investment Company Act of 1940 that receive the highest credit rating, are rated in one of the two highest rating categories by a statistical rating agency, and all of the investments have a final maturity of 13 months or less; general obligations rated "A" or better; revenue obligations rated "AA" or better; general obligations of the Minnesota Housing Finance Agency rated "A" or better; bankers' acceptances of United States banks eligible for purchase by the Federal Reserve System; commercial paper issued by United States corporations or their Canadian subsidiaries, rated of the highest quality category by at least two nationally recognized rating agencies, and maturing in 270 days or less; Guaranteed Investment Contracts guaranteed by a United States commercial bank, domestic branch of a foreign bank, or a United States insurance company, and with a credit quality in one of the top two highest categories; repurchase or reverse purchase agreements and securities lending agreements with financial institutions qualified as a "depository" by the government entity, with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000; that are a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York; or certain Minnesota securities broker -dealers. The City's investment policies do not further address credit risk. NOTE 3 — LEASE RECEIVABLE The City has entered into lease receivable agreements for cell tower rental space on city property. The leases are reported using an incremental interest rate of 3.25 percent with a final maturity through fiscal 2053. During the current year, the City received principal and interest payments on these leases of $127,828. -34- NOTE 4 - CAPITAL ASSETS Capital asset activity for the year ended December 31, 2025, was as follows: A. Governmental Activities Beginning Completed Ending Balance Increases Decreases Construction Balance Primary government Governmental activities Capital assets, not being depreciated Land $ 2,669,467 $ - $ - $ - $ 2,669,467 Construction in progress 5,334,149 871,749 - (5,151,783) 1,054,115 Total capital assets, not being depreciated 8,003,616 871,749 - (5,151,783) 3,723,582 Capital assets, being depreciated Buildings and structures Infrastructure and improvements Machinery and equipment Office furniture and equipment Vehicles Total capital assets, being depreciated Less accumulated depreciation for Buildings and structures Infrastructure and improvements Machinery and equipment Office furniture and equipment Vehicles Total accumulated depreciation Total capital assets being depreciated - net Governmental activities capital assets - net B. Business -Type Activities Primary government Business -type activities Capital assets, not being depreciated Construction in progress Capital assets, being depreciated Buildings and structures Distribution and collection systems Machinery and equipment Total capital assets, being depreciated Less accumulated depreciation for Buildings and structures Distribution and collection systems Machinery and equipment Total accumulated depreciation Total capital assets, being depreciated - net Business -type activities capital assets - net 7,924,074 - - 1,199,534 9,123,608 25,969,880 - - 3,624,144 29,594,024 1,147,739 48,371 (45,719) - 1,150,391 153,553 - - - 153,553 2,367,498 223,036 (210,735) 328,105 2,707,904 37,562,744 271,407 (256,454) 5,151,783 42,729,480 4,492,566 255,991 - - 4,748,557 6,987,155 618,135 - - 7,605,290 811,707 52,213 (12,976) - 850,944 153,553 - - - 153,553 1,409,165 182,945 (179,177) - 1,412,933 13,854,146 1,109,284 (192,153) - 14,771,277 23,708,598 (837,877) (64,301) 5,151,783 27,958,203 $ 31,712,214 $ 33,872 $ (64,301) $ - $ 31,681,785 Beginning Completed Ending Balance Increases Decreases Construction Balance $ 1,690,447 $ 1,847,008 $ - $ (2,218,438) $ 1,319,017 835,040 - - - 835,040 31,216,318 - - 2,218,438 33,434,756 639,062 5,917 - - 644,979 32,690,420 5,917 - 2,218,438 34,914,775 421,067 41,544 - - 462,611 12,353,259 718,849 - - 13,072,108 411,997 18,858 - - 430,855 13,186,323 779,251 - - 13,965,574 19,504,097 (773,334) - 2,218,438 20,949,201 $ 21,194,544 $ 1,073,674 $ - $ - $ 22,268,218 -35- NOTE 4 — CAPITAL ASSETS (CONTINUED) C. Depreciation Expense by Function Depreciation expense was charged to the following functions: Governmental activities General government $ 126,110 Public safety 6,562 Public works 675,598 Parks and recreation 242,842 Economic development 58,172 $ 1,109,284 Business -type activities Water $ 380,801 Sewer 230,110 Surface water management 168,340 $ 779,251 NOTE 5 — LONG-TERM LIABILITIES A. General Obligation Bonds Payable The City currently has the following general obligation bonds payable outstanding: Final Maturity Authorized Balance — Issue Date Date Interest Rate and Issued End of Year Governmental activities General obligation bonds Capital Improvement Plan Bonds of 2025A 05/20/2025 02/01/2041 4.00-5.00 % $ 2,895,000 $ 2,895,000 Business -type activities General obligation bonds Utility Revenue Bonds of 2018A 07/18/2018 02/01 /2029 3.00-4.00 % $ 2,415,000 $ 1,080,000 These bonds were issued to finance the City's contribution for their share of a new fire station and for the acquisition, construction, and/or improvements of utility infrastructure. The Debt Service Fund and the Water and Sewer Enterprise Funds will be used to repay this debt. B. Other Long -Term Liabilities • Compensated Absences — This liability represents vested benefits earned by employees through the end of the year, which will be paid or used in future periods. The General, special revenue, enterprise, and internal service funds will be used to liquidate this liability. • Net Pension Liability — This liability represents the City's pension benefit obligations as further described later in these notes. The General, special revenue, Water, Sewer, and Surface Water Management Funds will be used to liquidate this liability. -36- NOTE 5 - LONG-TERM LIABILITIES (CONTINUED) C. Changes in General Obligation Bonds and Compensated Absences Payable Governmental activities Capital improvement plan bonds Premium Total bonds Compensated absences Total governmental activities Business -type activities Utility revenue bonds Premium Total bonds Compensated absences Total business -type activities Total government -wide D. Minimum Debt Payments Beginning Ending Due Within Balance Additions Deletions Balance One Year $ - $ 2,895,000 $ - $ 2,895,000 $ - - 171,872 6,684 165,188 - - 3,066,872 6,684 3,060,188 - 103,919 158,491 140,314 122,096 91,571 103,919 3,225,363 146,998 3,182,284 91,571 1,325,000 - 245,000 1,080,000 255,000 63,611 - 15,557 48,054 - 1,388,611 - 260,557 1,128,054 255,000 74,102 109,730 100,884 82,948 62,211 1,462,713 109,730 361,441 1,211,002 317,211 $ 1,566,632 $ 3,335,093 $ 508,439 $ 4,393,286 $ 408,782 Minimum annual payments required to retire bonds are as follows: Year Ending Governmental Activities CIP Bonds Principal Interest Business -Type Activities Utility Revenue Bonds Principal Interest 2026 $ - $ 156,597 $ 255,000 $ 32,500 2027 135,000 127,425 265,000 22,100 2028 145,000 120,425 275,000 12,675 2029 150,000 113,050 285,000 4,275 2030 160,000 105,300 2031-2035 910,000 397,000 - - 2036-2040 1,140,000 168,400 - - 2041 255,000 5,100 Total $ 2,895,000 $ 1,193,297 $ 1,080,000 $ 71,550 E. Revenue Pledged Future revenue pledged for the payment of long-term debt is as follows: Revenue Pledged Current Year Percent of Remaining Principal Pledged Use of Total Term of Principal and Interest Revenue Debt Issue Proceeds Type Debt Service Pledge and Interest Paid Received Utility Revenue Bonds of 2018A Utility improvements Utility charges 100'90 2018-2029 $ 1,151,550 $ 287,976 $ 5,694,982 -37- NOTE 6 — NET POSITION/FUND BALANCES A. Net Investment in Capital Assets The government -wide Statement of Net Position on December 31, 2025 includes the City's net investment in capital assets calculated as follows: Net investment in capital assets Capital assets Nondepreciable Depreciable, net of accumulated depreciation Less capital -related long-term debt outstanding Less capital -related accounts/contracts payable Less capital -related due to other governmental units Total net investment in capital assets B. Governmental Fund Balance Classifications Governmental Business -Type Activities Activities Total $ 3,723,582 $ 1,319,017 $ 5,042,599 27,958,203 20,949,201 48,907,404 — (1,128,054) (1,128,054) (437,690) (437,690) (697,397) — (697,397) $ 30,984,388 $ 20,702,474 $ 51,686,862 At December 31, 2025, a summary of the City's governmental fund balance classifications are as follows: Nonspendable Prepaid items Restricted for Tax increment purposes Debt service Park improvements Total restricted Committed for Economic development authority Assigned for Compensated absences Capital improvements Public safety capital equipment Total assigned Unassigned Total Permanent Public Safety Other Improvement Capital Governmental General Revolving Equipment Funds Total $ 48,300 $ — $ — $ 12,683 $ 60,983 — — — 1,272,627 1,272,627 — — — 494,721 494,721 — — — 692,945 692,945 — — — 2,460,293 2,460,293 819,179 819,179 122,096 — — — 122,096 — 2,952,648 — — 2,952,648 637,957 772,992 1,410,949 122,096 2,952,648 637,957 772,992 4,485,693 4,051,711 (246,386) 3,805,325 $ 4,222,107 $ 2,952,648 $ 637,957 $ 3,818,761 $ 11,631,473 C. Minimum Unassigned Fund Balance Policy The City Council has formally adopted a fund balance policy regarding the minimum unassigned fund balance for the General Fund. The policy establishes that the City will strive to maintain an unassigned General Fund balance of 50.0 percent of the subsequent year's General Fund budgeted expenditures. On December 31, 2025, the unassigned fund balance of the General Fund was 55.8 percent of the subsequent year's budgeted expenditures. No NOTE 7 — DEFINED BENEFIT PENSION PLAN — STATE-WIDE A. Plan Description The City participates in the following cost -sharing, multiple -employer defined benefit pension plan administered by the PERA of Minnesota. The plan provisions are established and administered according to Minnesota Statutes, Chapters 353 and 356. Minnesota Statutes Chapter 356 defines the plan's financial reporting requirements. The PERA's defined benefit pension plan is a tax qualified plan under Section 401(a) of the Internal Revenue Code (IRC). General Employees Retirement Fund (GERF) Membership in the GERF includes employees of counties, cities, townships, schools in noncertified positions, and other governmental entities whose revenues are derived from taxation, fees, or assessments. Plan membership is required for any employee who is expected to earn more than $425 in a month, unless the employee meets exclusion criteria. B. Benefits Provided The PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statutes and can only be modified by the State Legislature. Vested, terminated employees who are entitled to benefits, but are not receiving them yet, are bound by the provisions in effect at the time they last terminated their public service. When a member is "vested," they have earned enough service credit to receive a lifetime monthly benefit after leaving public service and reaching an eligible retirement age. Members who retire at or over their Social Security full retirement age with at least one year of service qualify for a retirement benefit. GERF Benefits The GERF requires three years of service to vest. Benefits are based on a member's highest average salary for any five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for GERF members. Members hired prior to July 1, 1989, receive the higher of the Step or Level formulas. Only the Level formula is used for members hired after June 30, 1989. Under the Step formula, GERF members receive 1.20 percent of the highest average salary for each of the first 10 years of service, and 1.70 percent for each additional year. Under the Level formula, GERF members receive 1.70 percent of highest average salary for all years of service. For members hired prior to July 1, 1989, a full retirement benefit is available when age plus years of service equal 90, and normal retirement age is 65. Members can receive a reduced retirement benefit as early as age 55 if they have three or more years of service. Early retirement benefits are reduced by 0.25 percent for each month under age 65. Members with 30 or more years of service can retire at any age with a reduction of 0.25 percent for each month the member is younger than age 62. The Level formula allows GERF members to receive a full retirement benefit at age 65 if they were first hired before July 1, 1989 or at age 66 if they were hired on or after July 1, 1989. Early retirement begins at age 55 with an actuarial reduction applied to the benefit. Benefit increases are provided to benefit recipients each January. The post -retirement increase is equal to 50.00 percent of the cost of living adjustment (COLA) announced by the Social Security Administration, with a minimum increase of at least 1.00 percent and a maximum of 1.50 percent. The 2025 annual increase was 1.25 percent. Recipients that have been receiving the annuity or benefit for at least a full year as of the June 30 before the effective date of the increase, will receive the full increase. Recipients receiving the annuity or benefit for at least one month, but less than a full year as of the June 30 before the effective date of the increase, will receive a prorated increase. -39- NOTE 7 — DEFINED BENEFIT PENSION PLAN — STATE-WIDE (CONTINUED) C. Contributions Minnesota Statutes, Chapter 353 and 356 set the rates for employer and employee contributions. Contribution rates can only be modified by the State Legislature. GERF Contributions General Plan members were required to contribute 6.50 percent of their annual covered salary in fiscal year 2025, and the City was required to contribute 7.50 percent for General Plan members. The City's contributions to the GERF for the year ended December 31, 2025, were $188,188. The City's contributions were equal to the required contributions as set by state statutes. D. Pension Costs GERF Pension Costs At December 31, 2025, the City reported a liability of $840,202 for its proportionate share of the GERF's net pension liability. The City's net pension liability reflected a reduction, due to the state of Minnesota's contribution of $16.0 million. The state of Minnesota is considered a nonemployer contributing entity and the state's contribution meets the definition of a special funding situation. The state of Minnesota's proportionate share of the net pension liability associated with the City totaled $20,268. City's proportionate share of the net pension liability $ 840,202 State's proportionate share of the net pension liability associated with the City 20,268 Total $ 860,470 The net pension liability was measured as of June 30, 2025, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's proportion of the net pension liability was based on the City's contributions received by the PERA during the measurement period for employer payroll paid dates from July 1, 2024 through June 30, 2025, relative to the total employer contributions received from all of the PERA's participating employers. The City's proportionate share was 0.0254 percent at the end of the measurement period and 0.0250 percent for the beginning of the period. For the year ended December 31, 2025, the City recognized negative pension expense of $15,697 for its proportionate share of the GERF's pension expense. In addition, the City recognized an additional $3,109 as negative pension expense (and grant revenue) for its proportionate share of the state of Minnesota's contribution of $16.0 million to the GERF. .m NOTE 7 — DEFINED BENEFIT PENSION PLAN — STATE-WIDE (CONTINUED) At December 31, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Differences between expected and actual economic experience Changes in actuarial assumptions Net difference between projected and actual earnings on pension plan investments Changes in proportion Employer contributions subsequent to the measurement date Total Deferred Deferred Outflows Inflows of Resources of Resources $ 80,053 $ — 20,244 193,328 — 334,324 42,550 4,905 98,511 — $ 241,358 $ 532,557 The $98,511 reported as deferred outflows of resources related to pensions resulting from city contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending December 31, 2026. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Pension Year Ending Expense December 31, Amount 2026 $ (63,035) 2027 $ (156,203) 2028 $ (110,750) 2029 $ (59,722) E. Long -Term Expected Return on Investments The Minnesota State Board of Investment, which manages the investments of the PERA, prepares an analysis of the reasonableness on a regular basis of the long-term expected rate of return using a building-block method in which best -estimate ranges of expected future rates of return are developed for each major asset class. These ranges are combined to produce an expected long-term rate of return by weighting the expected future rates of return by the target asset allocation percentages. The target allocation and best -estimates of geometric real rates of return for each major asset class are summarized in the following table: Target Long -Term Expected Asset Class Allocation Real Rate of Return Domestic equity 33.50 % 5.10 % International equity 16.50 5.30 % Fixed income 25.00 0.75 % Private markets 25.00 5.90 % Total 100.00 % -41- NOTE 7 — DEFINED BENEFIT PENSION PLAN — STATE-WIDE (CONTINUED) F. Actuarial Methods and Assumptions The total pension liability for the cost -sharing defined benefit plan was determined by an actuarial valuation as of June 30, 2025, using the entry -age normal actuarial cost method. The long-term rate of return on pension plan investments used in the determination of the total liability is 7.00 percent. This assumption is based on a review of inflation and investments return assumptions from a number of national investment consulting firms. The review provided a range of investment return rates considered reasonable by the actuary. An investment return of 7.00 percent is within that range. Inflation is assumed to be 2.25 percent for the General Employees Plan and the benefit increases after retirement are assumed to be 1.50 percent. Salary growth assumptions in the General Employees Plan range in annual increments from 11.50 percent after one year of service to 3.00 percent after 27 years of service. Mortality rates for the General Employees Plan are based on the Pub-2010 General Employee Mortality Table. The tables are adjusted slightly to fit the PERA's experience. Actuarial assumptions for the General Employees Plan are reviewed every four years. The General Employees Plan was last reviewed in 2022. The assumption changes were adopted by the Board and became effective with the July 1, 2023 actuarial valuation. The following changes in actuarial assumptions and plan provisions occurred in 2025: GERF CHANGES IN ACTUARIAL ASSUMPTIONS • The combined service annuity loading factors increased from 15.00 percent to 19.00 percent for vested terminated members and from 3.00 percent to 44.00 percent for nonvested, terminated members. • The assumed post -retirement benefit increase changed from 1.25 percent to 1.50 percent. CHANGES IN PLAN PROVISIONS The post -retirement benefit increase formula changed to 100.00 percent of the Social Security annual increase, between 1.00 percent and 1.75 percent, beginning January 1, 2026. If the funded ratio (on a market value of assets basis) is less than 85.00 percent for the last two consecutive annual valuations or is less than 80.00 percent in the most recent actuarial valuation, the maximum is reduced to 1.50 percent. Previously, the benefit increase was 50.00 percent of the Social Security annual increase, between 1.00 percent and 1.50 percent. The 1.00 percent additional employer contribution is eliminated when the plan reaches 98.00 percent funded status (on an actuarial value of assets basis); this contribution was previously scheduled to stop when the plan reached 100.00 percent funded status. -42- NOTE 7 — DEFINED BENEFIT PENSION PLAN — STATE-WIDE (CONTINUED) G. Discount Rate The discount rate used to measure the total pension liability in 2025 was 7.00 percent. The projection of cash flows used to determine the discount rate assumed that contributions from plan members and employers will be made at rates set in Minnesota Statutes. Based on these assumptions, the fiduciary net position of the General Employees Fund were projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. H. Pension Liability Sensitivity The following table presents the City's proportionate share of the net pension liability (asset) for all plans it participates in, calculated using the discount rate disclosed in the preceding section, as well as what the City's proportionate share of the net pension liability (asset) would be if it were calculated using a discount rate 1.00 percentage point lower or 1.00 percentage point higher than the current discount rate: 1% Decrease in Current 1% Increase in Discount Rate Discount Rate Discount Rate (6.00%) (7.00%) (8.00%) City's proportionate share of the GERF net pension liability (asset) $ 2,040,718 $ 840,202 $ (133,687) I. Pension Plan Fiduciary Net Position Detailed information about each pension plan's fiduciary net position is available in a separately -issued PERA financial report that includes financial statements and required supplementary information. That report may be obtained on the internet at www.mnpera.org. NOTE 8 — INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS A. Interfund Receivable and Payable Interfund receivable and payable balances on December 31, 2025, are as follows: Fund Governmental funds Nonmajor — other governmental Receivable Payable $ 74,417 $ 74,417 Interfund receivables and payables are used for temporary cash deficits. These balances will be eliminated with future charges for services, grants, and other internal fund transfers, if needed. -43- NOTE 8 — INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS (CONTINUED) B. Transfers In and Transfers Out Transfers Out Governmental Funds General Public Safety Capital Equipment Total governmental Proprietary Funds Water Sewer Surface Water Management Total proprietary Total Transfers In Governmental Funds Nonmaj or — Other Governmental $ 50,000 180,567 230,567 100,000 126,000 74,000 300,000 $ 530,567 Transfers are made in accordance with budget appropriations or as approved by the City Council for special funding of city activities. All of the transfers presented above were approved by the City Council. Transfers out of proprietary funds were made to finance current and future capital equipment, building, and replacement expenditures of the City. The General Fund transferred $50,000 to support Cable Special Revenue Fund operations as authorized by the City Council. The Public Safety Capital Equipment Fund transferred $180,567 to support Debt Service Fund operations as required through the debt issuance financing plan. Interfund receivables, payables, and transfers are eliminated to the extent possible with the government -wide financial statement presentation. NOTE 9 — DEFICIT FUND BALANCES The City had deficit fund balances on December 31, 2025, as follows: Amount Governmental funds Nonmajor — Cable $ 35,261 Nonmajor — EDA TIF District No. 5 28,519 Total $ 63,780 These fund deficits will be eliminated with future contributions, grants, and internal fund transfers, if needed. NOTE 10 — JOINT POWERS ORGANIZATION The City is a member of the Lake Johanna Fire Department Headquarters, together with the cities of Shoreview and North Oaks which are organized as a joint powers organization with a governance board (the Board). The member cities of the organization all contract with the Department to provide fire protection services to their respective cities. The purpose of the joint powers organization was to establish a Board that would oversee the construction of a new fire station that was large enough to accommodate headquarters for the Department and improve access to the Department's entire service area. Each member city retains a responsibility to support the construction of the new facility and retains an ongoing interest in the building and related equipment as defined in a formula for a share of equity and costs as defined in the joint powers agreement. Financial information for the Board can be obtained from the City of Shoreview who was appointed as the fiscal agent for the Board. The City contributed $2,882,506 to the Board during the year ended December 31, 2025, that was financed with bonds issued for this purpose. As of December 31, 2025, the City reported a balance of $2,886,392 for the investment in joint ventures on the government -wide Statement of Net Position. NOTE 11 — COMMITMENTS AND CONTINGENCIES A. Risk Management The City is exposed to various risks of loss related to torts: theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters for which the City carries insurance. The City obtains insurance through participation in the League of Minnesota Cities Insurance Trust (LMCIT), which is a risk -sharing pool with other governmental units. The City pays an annual premium to the LMCIT for its workers' compensation and property and casualty insurance. The LMCIT is self-sustaining through member premiums and will reinsure for claims above a prescribed dollar amount for each insurance event. There were no significant reductions in insurance from the previous year or settled claims in excess of insurance coverage for any of the past three fiscal years. Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities, if any, include an amount for claims that have been incurred, but not reported. The City's management is not aware of any incurred, but unreported claims. B. Litigation The City has the usual and customary type of miscellaneous legal claims pending at year-end. Although the outcome of these lawsuits is not presently determinable, the City's management believes that the City will not incur any material monetary loss resulting from these claims. No loss has been recorded on the City's financial statements relating to these claims. C. Federal and State Funds Amounts recorded or receivable from federal and state agencies are subject to agency audit and adjustment. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of claims which may be disallowed by the grantor agencies cannot be determined at this time, although the City expects such amounts, if any, to be immaterial. -45- NOTE 11— COMMITMENTS AND CONTINGENCIES (CONTINUED) D. Tax Increment Districts The City's tax increment districts are subject to review by the Minnesota Office of the State Auditor. Any disallowed claims or misuse of tax increments could become a liability of the applicable fund. Management has indicated that they are not aware of any instances of noncompliance, which would have a material effect on the financial statements. E. Lake Johanna Volunteer Fire Department, Inc. The City receives fire protection under a contract with the Department. The contract calls for annual payments and expires December 31, 2038. The contract cost will be based on the budget submitted by the fire department and approved by the City. Capital costs are billed separately, in addition to the contract rate. The amount expended under the contract was $892,173 in 2025. The City also made capital contributions in the current year totaling $2,962,502. F. Construction Contract Commitments At year-end, the City had the following construction contract commitments: Proj ect Amount Permanent Improvement Revolving Fund Freeway Park and Arden Oaks Park Improvements $ 6,000 Sewer Fund Lift Station 5 Project 109,345 2025 CIPP Lining Project 24,016 Total $ 139,361 NOTE 12 — CONDUIT DEBT OBLIGATION The City has issued private activity bonds to provide financial assistance to private sector entities for the acquisition and construction of industrial and commercial facilities deemed to be in the public interest. The bonds constitute special obligations of the City, payable solely from revenues of the projects pledged to the payment thereof. The bonds do not constitute a debt of the City and the City has no obligation for repayment. Accordingly, the bonds are not reported as liabilities in the City's financial statements. Bonds outstanding as of December 31, 2025, are as follows: Bond Commercial Facilities Revenue Note, Series 2008 Housing Facility Revenue Note, Series 2011A Housing Facility Revenue Note, Series 2012A Housing Facility Revenue Note, Series 2015 Educational Facilities Revenue Refunding Note, Series 2025 Total Amount Description Outstanding Office facilities Senior housing Senior housing Senior housing Educational facility $ 1,264,899 6,181,169 6,181,169 6,889,165 1,184,901 $ 21,701,303 -46- THIS PAGE INTENTIONALLY LEFT BLANK REQUIRED SUPPLEMENTARY INFORMATION THIS PAGE INTENTIONALLY LEFT BLANK CITY OF ARDEN HILLS PERA - General Employees Retirement Fund Schedule of City's and Nonemployer Proportionate Share of Net Pension Liability Year Ended December 31, 2025 Proportionate Share of the City's Net Pension Proportionate Liability and City's Share of the the City's Proportionate Plan Fiduciary State of Share of the Share of the Net Position City's City's M nnesota's State of Net Pension as a PERA Fiscal Proportion Proportionate Proportionate Minnesota's Liability as a Percentage Year -End Date of the Net Share of the Share of the Share of the City's Percentage of of the Total City Fiscal (Measurement Pension Net Pension Net Pension Net Pension Covered Covered Pension Year -End Date Date) Liability Liability Liability Liability Payroll Payroll Liability 12/31/2016 06/30/2016 0.0267% $ 2,167,909 $ 28,367 $ 2,196,276 $ 1,669,147 129.88% 68.9% 12/31/2017 06/30/2017 0.0230% $ 1,468,305 $ 18,435 $ 1,486,740 $ 1,479,483 99.24% 75.9% 12/31/2018 06/30/2018 0.0218% $ 1,209,375 $ 39,819 $ 1,249,194 $ 1,467,987 82.38% 79.5% 12/31/2019 06/30/2019 0.0218% $ 1,205,274 $ 37,332 $ 1,242,606 $ 1,540,669 78.23% 80.2% 12/31/2020 06/30/2020 0.0241% $ 1,444,905 $ 44,478 $ 1,489,383 $ 1,715,236 84.24% 79.1% 12/31/2021 06/30/2021 0.0244% $ 1,041,989 $ 31,890 $ 1,073,879 $ 1,758,683 59.25% 87.0% 12/31/2022 06/30/2022 0.0233% $ 1,845,368 $ 53,913 $ 1,899,281 $ 1,741,886 105.94% 76.7% 12/31/2023 06/30/2023 0.0252% $ 1,409,156 $ 38,854 $ 1,448,010 $ 2,003,871 70.32% 83.1% 12/31/2024 06/30/2024 0.0250% $ 925,929 $ 23,943 $ 949,872 $ 2,119,768 43.68% 89.1% 12/31/2025 06/30/2025 0.0254% $ 840,202 $ 20,268 $ 860,470 $ 2,296,256 36.59% 90.8% PERA - General Employees Retirement Fund Schedule of City Contributions Year Ended December 31, 2025 City Fiscal Year -End Date Statutorily Required Contributions Contributions in Relation to the Statutorily Required Contributions Contribution Deficiency (Excess) Covered Payroll Contributions as a Percentage of Covered Payroll 12/31/2016 $ 115,814 $ 115,814 $ - $ 1,544,187 7.5% 12/31/2017 $ 106,513 $ 106,513 $ - $ 1,420,174 7.5% 12/31/2018 $ 111,628 $ 111,628 $ - $ 1,488,376 7.5% 12/31/2019 $ 121,063 $ 121,063 $ - $ 1,614,175 7.5% 12/31/2020 $ 134,798 $ 134,798 $ - $ 1,797,307 7.5% 12/31/2021 $ 123,572 $ 123,572 $ - $ 1,647,630 7.5% 12/31/2022 $ 143,623 $ 143,623 $ - $ 1,914,968 7.5% 12/31/2023 $ 154,657 $ 154,657 $ - $ 2,062,098 7.5% 12/31/2024 $ 164,785 $ 164,785 $ - $ 2,197,128 7.5% 12/31/2025 $ 188,188 $ 188,188 $ - $ 2,509,176 7.5% -47- Revenues General property taxes Licenses and permits Business Nonbusiness Total licenses and permits Intergovernmental State Road maintenance Police aid Local performance aid Total intergovernmental Charges for services General government Public safety Parks and recreation Administrative charges Total charges for services Fines and forfeits Earnings on investments Antenna lease rental fees Miscellaneous reimbursements Other Total revenues Expenditures Current General government City Council Personal services Other services and charges Total City Council Elections Other services and charges Administration Personal services Materials and supplies Other services and charges Total administration CITY OF ARDEN HILLS Required Supplementary Information Budgetary Comparison Schedule - General Fund Year Ended December 31, 2025 Budgeted Amounts Variance With Original Final Actual Final Budget - $ 5,359,798 $ 5,359,798 $ 5,201,278 $ (158,520) 80,490 80,490 73,629 (6,861) 470,050 470,050 888,631 418,581 550,540 550,540 962,260 411,720 113,649 113,649 133,804 20,155 62,647 62,647 - (62,647) 250 250 176,296 176,296 134,054 (42,242) 18,720 18,720 19,442 722 135,151 135,151 264,189 129,038 94,320 94,320 80,818 (13,502) 119,730 119,730 147,670 27,940 367,921 367,921 512,119 144,198 17,360 17,360 27,610 10,250 50,000 50,000 264,255 214,255 104,073 104,073 127,828 23,755 5,800 5,800 26,931 21,131 7,482 7,482 30,280 22,798 6,639,270 6,639,270 7,286,615 647,345 41,070 41,070 40,969 101 52,749 52,749 51,001 1,748 93,819 93,819 91,970 1,849 61,750 61,750 34,285 27,465 318,880 318,880 284,753 34,127 25 (25) 187,955 187,955 187,035 920 506,835 506,835 471,813 35,022 -48- (continued) CITY OF ARDEN HILLS Required Supplementary Information Budgetary Comparison Schedule - General Fund (continued) Year Ended December 31, 2025 Expenditures (continued) Current (continued) General government (continued) Finance Personal services Materials and supplies Other services and charges Total finance TCAAP Personal services Other services and charges Total TCAAP Planning and zoning Personal services Materials and supplies Other services and charges Total planning and zoning General government buildings Personal services Materials and supplies Other services and charges Total general government buildings Total general government Public safety Police and animal control Other services and charges Dispatch Other services and charges Fire protection Other services and charges Emergency management Personal services Other services and charges Total emergency management Protective inspections Personal services Materials and supplies Other services and charges Total protective inspections Total public safety Budgeted Amounts Original Final Actual Variance With Final Budget 106,890 106,890 102,542 4,348 12,000 12,000 12,375 (375) 101,866 101,866 84,008 17,858 220,756 220,756 198,925 21,831 51,920 51,920 40,213 11,707 70,000 70,000 38,055 31,945 121,920 121,920 78,268 43,652 264,470 264,470 193,061 71,409 1,092 (1,092) 88,320 88,320 63,344 24,976 352,790 352,790 257,497 95,293 40,090 40,090 41,180 (1,090) 9,180 9,180 11,614 (2,434) 191,662 191,662 194,513 (2,851) 240,932 240,932 247,307 (6,375) 1,598,802 1,598,802 1,380,065 218,737 1,761,288 1,951,288 1,927,657 23,631 73,570 73,570 42,913 30,657 906,321 906,321 892,173 14,148 8,130 8,130 6,229 1,901 1,650 1,650 1,186 464 9,780 9,780 7,415 2,365 304,390 304,390 270,034 34,356 1,250 1,250 369 881 67,520 67,520 68,011 (491) 373,160 373,160 338,414 34,746 3,124,119 3,314,119 3,208,572 105,547 -49- (continued) CITY OF ARDEN HILLS Required Supplementary Information Budgetary Comparison Schedule - General Fund (continued) Year Ended December 31, 2025 Expenditures (continued) Current (continued) Public works Street maintenance Personal services Materials and supplies Other services and charges Total public works Parks and recreation Park maintenance Personal services Materials and supplies Other services and charges Total park maintenance Recreation Personal services Materials and supplies Other services and charges Total recreation Total parks and recreation Total expenditures Revenues over (under) expenditures Other financing sources (uses) Transfers out Net change in fund balance Fund balance - beginning Fund balance - ending Budgeted Amounts Original Final Actual Variance With Final Budget 441,590 441,590 415,081 26,509 66,000 66,000 32,683 33,317 453,200 453,200 275,582 177,618 960,790 960,790 723,346 237,444 491,290 491,290 478,883 12,407 51,750 51,750 56,445 (4,695) 147,020 147,020 192,799 (45,779) 690,060 690,060 728,127 (38,067) 262,380 262,380 243,020 19,360 22,250 22,250 15,115 7,135 52,878 52,878 37,026 15,852 337,508 337,508 295,161 42,347 1,027,568 1,027,568 1,023,288 4,280 6,711,279 6,901,279 6,335,271 566,008 (72,009) (262,009) 951,344 1,213,353 (50,000) (50,000) (50,000) - $ (122,009) $ (312,009) 901,344 $ 1,213,353 3,320,763 $ 4,222,107 -50- CITY OF ARDEN HILLS Notes to Required Supplementary Information December 31, 2025 NOTE 1— LEGAL COMPLIANCE — BUDGETS The General Fund budget is legally adopted on a basis consistent with accounting principles generally accepted in the United States of America. The legal level of budgetary control is at the fund level. Budgeted appropriations lapse at year-end. NOTE 2 — PERA — GENERAL EMPLOYEES RETIREMENT FUND 2025 CHANGES IN ACTUARIAL ASSUMPTIONS • The combined service annuity loading factors increased from 15.00 percent to 19.00 percent for vested terminated members and from 3.00 percent to 44.00 percent for nonvested, terminated members. • The assumed post -retirement benefit increase changed from 1.25 percent to 1.50 percent. 2025 CHANGES IN PLAN PROVISIONS The post -retirement benefit increase formula changed to 100.00 percent of the Social Security annual increase, between 1.00 percent and 1.75 percent , beginning January 1, 2026. If the funded ratio (on a market value of assets basis) is less than 85.00 percent for the last two consecutive annual valuations or is less than 80.00 percent in the most recent actuarial valuation, the maximum is reduced to 1.50 percent. Previously, the benefit increase was 50.00 percent of the Social Security annual increase, between 1.00 percent and 1.50 percent. The 1.00 percent additional employer contribution is eliminated when the plan reaches 98.00 percent funded status (on an actuarial value of assets basis); this contribution was previously scheduled to stop when the plan reached 100.00 percent funded status. 2024 CHANGES IN ACTUARIAL ASSUMPTIONS • Rates of merit and seniority were adjusted, resulting in slightly higher rates. • Assumed rates of retirement were adjusted as follows: increase the rate of assumed unreduced retirements, slight adjustments to Rule of 90 retirement rates, and slight adjustments to early retirement rates for Tier 1 and Tier 2 members. • Minor increase in assumed withdrawals for males and females. • Lower rates of disability. • Continued use of Pub-2010 General Mortality Table, with slight rate adjustments as recommended in the most recent experience study. • Minor changes to form of payment assumptions for male and female retirees. • Minor changes to assumptions made with respect to missing participant data. 2024 CHANGES IN PLAN PROVISIONS The workers' compensation offset for disability benefits was eliminated. The actuarial equivalent factors were updated to reflect the changes in assumptions. -51- NOTE 2 — PERA — GENERAL EMPLOYEES RETIREMENT FUND (CONTINUED) 2023 CHANGES IN ACTUARIAL ASSUMPTIONS • The investment return assumption and single discount rate were changed from 6.50 percent to 7.00 percent. 2023 CHANGES IN PLAN PROVISIONS • An additional one-time direct state aid contribution of $170.1 million will be contributed to the Plan on October 1, 2023. • The vesting period of those hired after June 30, 2010, was changed from five years of allowable service to three years of allowable service. • The benefit increase delay for early retirements on or after January 1, 2024, was eliminated. • A one-time, noncompounding benefit increase of 2.50 percent minus the actual 2024 adjustment will be payable in a lump sum for calendar year 2024 by March 31, 2024. 2022 CHANGES IN ACTUARIAL ASSUMPTIONS • The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021. 2021 CHANGES IN ACTUARIAL ASSUMPTIONS The investment return and single discount rates were changed from 7.50 percent to 6.50 percent, for financial reporting purposes. The mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020. 2020 CHANGES IN ACTUARIAL ASSUMPTIONS • The price inflation assumption was decreased from 2.50 percent to 2.25 percent. • The payroll growth assumption was decreased from 3.25 percent to 3.00 percent. • Assumed salary increase rates were changed as recommended in the June 30, 2019 experience study. The net effect is assumed rates that average 0.25 percent less than previous rates. • Assumed rates of retirement were changed as recommended in the June 30, 2019 experience study. The changes result in more unreduced (normal) retirements and slightly fewer Rule of 90 and early retirements. • Assumed rates of termination were changed as recommended in the June 30, 2019 experience study. The new rates are based on service and are generally lower than the previous rates for years two through five, and slightly higher thereafter. • Assumed rates of disability were changed as recommended in the June 30, 2019 experience study. The change results in fewer predicted disability retirements for males and females. • The base mortality table for healthy annuitants and employees was changed from the RP-2014 Table to the Pub-2010 General Mortality Table, with adjustments. The base mortality table for disabled annuitants was changed from the RP-2014 Disabled Annuitant Mortality Table to the Pub-2010 General/Teacher Disabled Annuitant Mortality Table, with adjustments. • The mortality improvement scale was changed from MP-2018 to MP-2019. • The assumed spouse age difference was changed from two years older for females to one year older. • The assumed number of married male new retirees electing the 100.00 percent joint and survivor option changed from 35.00 percent to 45.00 percent. The assumed number of married female new retirees electing the 100.00 percent joint and survivor option changed from 15.00 percent to 30.00 percent. The corresponding number of married new retirees electing the life annuity option was adjusted accordingly. -52- NOTE 2 — PERA — GENERAL EMPLOYEES RETIREMENT FUND (CONTINUED) 2020 CHANGES IN PLAN PROVISIONS Augmentation for current privatized members was reduced to 2.00 percent for the period July 1, 2020 through December 31, 2023, and zero percent thereafter. Augmentation was eliminated for privatizations occurring after June 30, 2020. 2019 CHANGES IN ACTUARIAL ASSUMPTIONS • The mortality projection scale was changed from MP-2017 to MP-2018. 2019 CHANGES IN PLAN PROVISIONS • The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0 million per year. The state's special funding contribution was changed prospectively, requiring $16.0 million due per year through 2031. 2018 CHANGES IN ACTUARIAL ASSUMPTIONS The mortality projection scale was changed from MP-2015 to MP-2017. The assumed benefit increase was changed from 1.00 percent per year through 2044, and 2.50 percent per year thereafter, to 1.25 percent per year. 2018 CHANGES IN PLAN PROVISIONS • The augmentation adjustment in early retirement factors is eliminated over a five-year period starting July 1, 2019, resulting in actuarial equivalence after June 30, 2024. • Interest credited on member contributions decreased from 4.00 percent to 3.00 percent, beginning July 1, 2018. • Deferred augmentation was changed to zero percent, effective January 1, 2019. Augmentation that has already accrued for deferred members will still apply. • Contribution stabilizer provisions were repealed. • Post -retirement benefit increases were changed from 1.00 percent per year with a provision to increase to 2.50 percent upon attainment of 90.00 percent funding ratio to 50.00 percent of the Social Security Cost of Living Adjustment, not less than 1.00 percent and not more than 1.50 percent, beginning January 1, 2019. • For retirements on or after January 1, 2024, the first benefit increase is delayed until the retiree reaches normal retirement age; does not apply to Rule of 90 retirees, disability benefit recipients, or survivors. • Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions. 2017 CHANGES IN ACTUARIAL ASSUMPTIONS The Combined Service Annuity (CSA) loads were changed from 0.80 percent for active members and 60.00 percent for vested and nonvested deferred members. The revised CSA loads are now zero percent for active member liability, 15.00 percent for vested deferred member liability, and 3.00 percent for nonvested deferred member liability. The assumed post -retirement benefit increase rate was changed from 1.00 percent per year for all years, to 1.00 percent per year through 2044, and 2.50 percent per year thereafter. -53- NOTE 2 — PERA — GENERAL EMPLOYEES RETIREMENT FUND (CONTINUED) 2017 CHANGES IN PLAN PROVISIONS • The state's contribution for the Minneapolis Employees Retirement Fund equals $16.0 million in 2017 and 2018, and $6.0 million thereafter. • The Employer Supplemental Contribution for the Minneapolis Employees Retirement Fund changed from $21.0 million to $31.0 million in calendar years 2019 to 2031. The state's contribution changed from $16.0 million to $6.0 million in calendar years 2019 to 2031. 2016 CHANGES IN ACTUARIAL ASSUMPTIONS The assumed post -retirement benefit increase rate was changed from 1.00 percent per year through 2035, and 2.50 percent per year thereafter, to 1.00 percent per year for all years. The assumed investment return was changed from 7.90 percent to 7.50 percent. The single discount rate changed from 7.90 percent to 7.50 percent. Other assumptions were changed pursuant to the experience study June 30, 2015. The assumed future salary increases, payroll growth, and inflation were decreased by 0.25 percent to 3.25 percent for payroll growth, and 2.50 percent for inflation. -54- SUPPLEMENTARY INFORMATION THIS PAGE INTENTIONALLY LEFT BLANK NONMAJOR GOVERNMENTAL FUNDS Special Revenue Funds — Special revenue funds are used to account for revenues derived from specific taxes or other earmarked revenue sources. They are usually required by statutes, local ordinance, and/or resolution to finance particular functions, activities, or governments. Debt Service Funds — The City maintains one Debt Service Fund. This fund accounts for the accumulation of resources and payment of bond principal and interest and related costs on the General Obligation Capital Improvement Plan Bonds of 2025A. These bonds were issued to finance the City's portion of a new fire station to be constructed within city limits through a joint powers agreement. Capital Project Funds — Capital project funds account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds). CITY OF ARDEN HILLS Nonmajor Governmental Funds Combining Balance Sheet as of December 31, 2025 Total Nonmaj or Special Debt Capital Governmental Revenue Service Project Funds Assets Cash and investments $ 2,014,477 $ 378,006 $ 1,280,628 $ 3,673,111 Accrued interest receivable 4,297 — 6,306 10,603 Accounts receivable 18,681 116,715 — 135,396 Interfund receivable 74,417 — — 74,417 Prepaid items 12,683 — — 12,683 Total assets $ 2,124,555 $ 494,721 $ 1,286,934 $ 3,906,210 Liabilities Accounts payable $ 9,085 $ — $ 3,420 $ 12,505 Interfund payable 74,417 — — 74,417 Due to other governmental units 527 — — 527 Total liabilities 84,029 — 3,420 87,449 Fund balances (deficits) Nonspendable 12,683 — — 12,683 Restricted 1,272,627 494,721 692,945 2,460,293 Committed 819,179 — — 819,179 Assigned — — 772,992 772,992 Unassigned (63,963) — (182,423) (246,386) Total fund balances 2,040,526 494,721 1,283,514 3,818,761 Total liabilities and fund balances $ 2,124,555 $ 494,721 $ 1,286,934 $ 3,906,210 -55- CITY OF ARDEN HILLS Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended December 31, 2025 Revenues Property taxes General property taxes Earnings on investments Franchise taxes Other Total revenues Expenditures Current General government Economic development Capital outlay Public works Parks and recreation Debt Service Interest and fiscal charges Total expenditures Revenues over (under) expenditures Other financing sources Sale of capital assets Transfers in Total other financing sources Net change in fund balances Fund balances - beginning, as previously reported Change within financial reporting entity (nonmajor to major fund) Fund balances - beginning, as adjusted Fund balances - ending Total Nonmaj or Special Debt Capital Governmental Revenue Service Project Funds $ 4,351 $ - $ 100,000 $ 104,351 45,815 - 54,219 100,034 79,895 403,524 - 483,419 2,875 - 469,457 472,332 132,936 403,524 623,676 1,160,136 137,969 137,969 81,436 81,436 194,858 194,858 81,993 81,993 - 89,370 - 89,370 219,405 89,370 276,851 585,626 (86,469) 314,154 346,825 574,510 105,775 105,775 50,000 180,567 300,000 530,567 50,000 180,567 405,775 636,342 (36,469) 494,721 752,600 1,210,852 2,076,995 - 940,120 3,017,115 (409,206) (409,206) 2,076,995 - 530,914 2,607,909 $ 2,040,526 $ 494,721 $ 1,283,514 $ 3,818,761 -56- THIS PAGE INTENTIONALLY LEFT BLANK NONMAJOR SPECIAL REVENUE FUNDS The City had the following nonmajor special revenue funds during the year: Cable Fund — This fund was established to account for transactions associated with cable television in the City. Revenues are franchise fees from Comcast. Expenditures include the operation of the North Suburban Cable Commission and other costs relating to cable television activity, internet, and other forms of communication. EDA Operating Fund — The EDA Operating Fund accounts for revenue sources, including tax increments and other sources, that are legally restricted or committed to expenditures for specified purposes (not including major capital projects). EDA TIF District No. 3 Fund — This fund was established as a Housing District in 1993. The revenue is derived from tax increment and expenditures are for developer reimbursements and administrative expenditures. This tax increment district was decertified in 2019. EDA TIF District No. 4 Fund — This fund was established as a redevelopment plan for Presbyterian Homes of Arden Hills, Inc. in 2010. The revenue is derived from tax increment and expenditures are for developer reimbursements and administrative expenditures. EDA TIF District No. 5 Fund — This fund was established as a redevelopment district in 2019 pursuant to special legislation for the TCAAP property. The revenue is derived from tax increment and expenditures are for economic development and administrative expenditures. CITY OF ARDEN HILLS Nonmajor Special Revenue Funds Combining Balance Sheet as of December 31, 2025 Total Nonmajor EDA EDA EDA Special EDA TIF District TIF District TIF District Revenue Cable Operating No.3 No.4 No.5 Funds Assets Cash and investments $ - $ 768,457 $ 815,261 $ 430,759 $ - $ 2,014,477 Accrued interest receivable - 4,297 - - - 4,297 Accounts receivable 18,681 - - - - 18,681 Interfund receivable - 46,425 27,992 - - 74,417 Prepaid items 183 12,500 - - - 12,683 Total assets $ 18,864 $ 831,679 $ 843,253 $ 430,759 $ - $ 2,124,555 Liabilities Accounts payable $ 7,700 $ - $ - $ 1,385 $ - $ 9,085 Interfund payable 46,425 - - - 27,992 74,417 Due to other governmental units - - - - 527 527 Total liabilities 54,125 - - 1,385 28,519 84,029 Fund balances (deficits) Nonspendable 183 12,500 - - - 12,683 Restricted - - 843,253 429,374 - 1,272,627 Committed - 819,179 - - - 819,179 Unassigned (35,444) - - - (28,519) (63,963) Total fund balances (deficits) (35,261) 831,679 843,253 429,374 (28,519) 2,040,526 Total liabilities and fund balances $ 18,864 S 831,679 $ 843,253 430,759 $ - $ 2,124,555 -57- Revenues Property taxes General property taxes Earnings on investments Franchise taxes Other Total revenues Expenditures Current General government Economic development Total expenditures Revenues over (under) expenditures Other financing sources Transfers in Net changes in fund balances Fund balances (deficits) - beginning Fund balances (deficits) - ending CITY OF ARDEN HILLS Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended December 31, 2025 Total Nonmajor EDA EDA EDA Special EDA TIF District TIF District TIF District Revenue Cable Operating No.3 No.4 No.5 Funds $ - $ 4,351 $ - $ - $ - $ 4,351 410 45,405 - - - 45,815 79,895 - - - - 79,895 - 2,875 - - - 2,875 80,305 52,631 - - - 132,936 137,969 - - - - 137,969 - 60,432 16,057 2,939 2,008 81,436 137,969 60,432 16,057 2,939 2,008 219,405 (57,664) (7,801) (16,057) (2,939) (2,008) (86,469) 50,000 - - - - 50,000 (7,664) (7,801) (16,057) (2,939) (2,008) (36,469) (27,597) 839,480 859,310 432,313 (26,511) 2,076,995 $ (35,261) $ 831,679 $ 843,253 $ 429,374 $ (28,519) $ 2,040,526 -58- THIS PAGE INTENTIONALLY LEFT BLANK NONMAJOR CAPITAL PROJECT FUNDS The City had the following nonmajor capital project funds during the year: Equipment, Building, and Replacement Fund — This fund was established for resources designated to be used for the purchase of capital equipment and building repairs. Parks Fund — This fund was established for park/trail acquisition and development. Revenue for this fund comes from developer park dedication fees, contributions, state grants, and investment interest. TCAAP Fund — This fund was established to account for resources designated to be used for the City's share of capital costs related to the approximately 430-acre TCAAP site purchased by Ramsey County. Assets Cash and investments Accrued interest receivable Total assets Liabilities Accounts payable Fund balances (deficits) Restricted Assigned Unassigned Total fund balances Total liabilities and fund balances CITY OF ARDEN HILLS Nonmajor Capital Project Funds Combining Balance Sheet as of December 31, 2025 Formerly Nonmajor Total Equipment, Public Safety Nonmajor Building, and Capital Capital Replacement Parks Equipment TCAAP Project Funds $ 769,204 $ 226,852 $ — $ 284,572 $ 1,280,628 3,788 1,117 — 1,401 6,306 $ 772,992 $ 227,969 $ — $ 285,973 $ 1,286,934 $ — $ 3,420 $ — $ — $ 3,420 — 224,549 — 468,396 692,945 772,992 — — — 772,992 — — — (182,423) (182,423) 772,992 224,549 — 285,973 1,283,514 $ 772,992 $ 227,969 $ — $ 285,973 $ 1,286,934 -59- CITY OF ARDEN HILLS Nonmajor Capital Project Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended December 31, 2025 Formerly Nonmajor Total Equipment, Public Safety Nonmajor Building, and Capital Capital Replacement Parks Equipment TCAAP Project Funds Revenues Property taxes General property taxes $ 100,000 $ - $ - $ - $ 100,000 Earnings on investments 30,093 11,670 - 12,456 54,219 Other - 1,061 - 468,396 469,457 Total revenues 130,093 12,731 - 480,852 623,676 Expenditures Capital outlay Public works 194,858 - - - 194,858 Parks and recreation 78,573 3,420 - - 81,993 Total expenditures 273,431 3,420 - - 276,851 Revenues over (under) expenditures (143,338) 9,311 - 480,852 346,825 Other financing sources Sale of capital assets 105,775 - - - 105,775 Transfers in 300,000 - - - 300,000 Total other financing sources 405,775 - - - 405,775 Net changes in fund balances 262,437 9,311 - 480,852 752,600 Fund balances (deficits) - beginning, as previously reported 510,555 215,238 409,206 (194,879) 940,120 Change within financial reporting entity (nonmajor to major fund) - - (409,206) - (409,206) Fund balances (deficits) - beginning, as adjusted 510,555 215,238 - (194,879) 530,914 Fund balances - ending $ 772,992 $ 224,549 $ - $ 285,973 $ 1,283,514 -60- CITY OF ARDEN HILLS Special Revenue Fund — Cable Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Year Ended December 31, 2025 Revenues Earnings on investments Franchise taxes Total revenues Expenditures Current General government Personal services Other services and charges Total expenditures Revenues over (under) expenditures Other financing sources Transfers in Net change in fund balances Fund balances (deficits) — beginning Fund balances (deficits) — ending Original and Variance With Final Budget Actual Final Budget $ — $ 410 $ 410 92,000 79,895 (12,105) 92,000 80,305 (11,695) 51,510 48,832 2,678 95,690 89,137 6,553 147,200 137,969 9,231 (55,200) (57,664) (2,464) 50,000 50,000 — $ (5,200) (7,664) $ (2,464) (27,597) $ (35,261) -61- CITY OF ARDEN HILLS Special Revenue Fund — EDA Operating Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Year Ended December 31, 2025 Revenues Property taxes General property taxes Earnings on investments Other Total revenues Expenditures Economic development Current Personal services Other services and charges Total expenditures Net change in fund balances Fund balance — beginning Fund balance — ending Original and Variance With Final Budget Actual Final Budget $ — $ 4,351 $ 4,351 45,405 45,405 2,875 2,875 52,631 52,631 66,370 51,132 15,238 18,582 9,300 9,282 84,952 60,432 24,520 $ (84,952) (7,801) $ 77,151 839,480 $ 831,679 -62- CITY OF ARDEN HILLS Special Revenue Fund — EDA TIF District No. 3 Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Year Ended December 31, 2025 Revenues Expenditures Current Economic development Other services and charges Net change in fund balances Fund balances — beginning Fund balances — ending Original and Variance With Final Budget Actual Final Budget 1,900 16,057 (14,157) $ (1,900) (16,057) $ (14,157) 859,310 $ 843,253 -63- CITY OF ARDEN HILLS Special Revenue Fund — EDA TIF District No. 4 Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Year Ended December 31, 2025 Revenues Expenditures Current Economic development Other services and charges Net change in fund balances Fund balances — beginning Fund balances — ending Original and Final Budget 1,900 $ (1,900) Variance With Actual Final Budget 2,939 (1,039) (2,939) $ (1,039) 432,313 $ 429,374 -64- CITY OF ARDEN HILLS Special Revenue Fund — EDA TIF District No. 5 Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Year Ended December 31, 2025 Revenues Expenditures Current Economic development Other services and charges Net change in fund balances Fund balances (deficits) — beginning Fund balances (deficits) — ending Original and Variance With Final Budget Actual Final Budget 1,900 2,008 (108) $ (1,900) (2,008) $ (108) (26,511) $ (28,519) -65- INTERNAL SERVICE FUNDS The City had the following internal service funds during the year: Risk Management Fund — This fund was established to account for the payment of property, liability, and workers' compensation insurance deductibles, and funds wellness activities for all departments. Engineering Fund — This fund was established to account for the costs related to engineering services. All costs are compiled in this fund and charged out to the departments based on usage. Central Garage Fund — This fund was established to account for certain public works department costs related to streets, parks, water, sanitary sewer, and surface water management. All costs are compiled in this fund and charged out to the departments based on usage. Technology Fund — This fund was established to account for costs related to technology. All costs are compiled in this fund and charged out to the departments based on usage. CITY OF ARDEN HILLS Assets Current assets Cash and investments Accrued interest receivable Prepaid items Total assets Liabilities Current liabilities Accounts payable Due to other governmental units Total liabilities Net position Unrestricted Combining Statement of Net Position Internal Service Funds as of December 31, 2025 Total Risk Central Internal Management Engineering Garage Technology Service Funds $ 210,186 $ 3,103 1,035 - - 1,388 211,221 4,491 $ 31,012 $ 31,012 2,478 $ 246,779 — 1,035 1,388 2,478 249,202 1,979 2,370 976 5,325 _ 28,642 1,502 30,144 1,979 31,012 2,478 35,469 $ 211,221 $ 2,512 $ — $ — $ 213,733 -66- CITY OF ARDEN HILLS Combining Statement of Revenues, Expenses, and Changes in Net Position Internal Service Funds Year Ended December 31, 2025 Total Risk Central Internal Management Engineering Garage Technology Service Funds Operating revenues Charges for services $ 139,793 $ 48,692 $ 196,047 $ 196,905 $ 581,437 Operating expenses Supplies and maintenance 124,227 16 124,243 Other services and charges 4,029 9,123 67,395 762 81,309 Purchased services 124,975 38,182 4,425 196,127 363,709 Total operating expenses 129,004 47,305 196,047 196,905 569,261 Operating income 10,789 1,387 12,176 Nonoperating revenues Earnings on investments 8,987 - - - 8,987 Change in net position 19,776 1,387 21,163 Net position - beginning 191,445 1,125 - - 192,570 Net position - ending $ 211,221 $ 2,512 $ - $ - $ 213,733 -67- CITY OF ARDEN HILLS Combining Statement of Cash Flows Internal Service Funds Year Ended December 31, 2025 Total Risk Central Internal Management Engineering Garage Technology Service Funds Cash flows from operating activities Receipts from customers and users $ 139,793 $ 48,692 $ 196,047 $ 196,905 $ 581,437 Payments to suppliers (129,004) (45,589) (190,954) (195,178) (560,725) Net cash flows from operating activities 10,789 3,103 5,093 1,727 20,712 Cash flows from investing activities Earnings on investments 8,827 - - - 8,827 Net change in cash and cash equivalents 19,616 3,103 5,093 1,727 29,539 Cash and cash equivalents - beginning 190,570 - 25,919 751 217,240 Cash and cash equivalents - ending $ 210,186 $ 3,103 $ 31,012 $ 2,478 $ 246,779 Reconciliation of operating income to net cash flows from operating activities Operating income $ 10,789 $ 1,387 $ - $ - $ 12,176 Adjustments to reconcile operating income to net cash flows from operating activities Change in assets and liabilities Prepaid items - (263) - - (263) Accounts payable - 1,979 (3,676) 976 (721) Due to other governments 8,769 751 9,520 Total adjustments - 1,716 5,093 1,727 8,536 Net cash flows from operating activities $ 10,789 $ 3,103 $ 5,093 $ 1,727 $ 20,712 -68- STATISTICAL SECTION (UNAUDITED) STATISTICAL SECTION (UNAUDITED) This part of the City's Annual Comprehensive Financial Report (ACFR) presents detailed information as a context for understanding this year's financial statements, note disclosures, and supplementary information. This information has not been audited by the independent auditor. The contents of the statistical section include: Financial Trends — These tables contain trend information that may assist the reader in assessing the City's current financial performance by placing it in historical perspective. Revenue Capacity — These schedules contain information to assist the reader in assessing the City's most significant local revenue source —property taxes. Debt Capacity — These tables present information that may assist the reader in analyzing the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. Demographic and Economic Information — These tables offer economic and demographic indicators that are commonly used for financial analysis and that can assist the reader in understanding the City's present and ongoing financial status. Operating Information — These tables contain service and infrastructure indicators that can assist the reader in understanding how the information in the City's ACFR relates to the services the City provides and the activities it performs. Source — Unless otherwise noted, the information in these tables is derived from the ACFR for the relevant year. CITY OF ARDEN HILLS Net Position by Component Last Ten Fiscal Years (Accrual Basis of Accounting) Fiscal Year 2016 2017 2018 2019 Governmental activities Net investment in capital assets $ 25,178,721 $ 22,750,377 $ 26,972,898 $ 26,988,912 Restricted 786,678 898,739 1,010,521 1,096,698 Unrestricted 8,249,560 10,678,219 8,736,913 9,070,332 Total governmental activities net position $ 34,214,959 $ 34,327,335 $ 36,720,332 $ 37,155,942 Business -type activities Net investment in capital assets $ 16,306,381 $ 16,292,000 $ 17,295,916 $ 17,452,137 Unrestricted 1,116,957 1,298,744 1,329,268 2,025,812 Total business -type activities net position $ 17,423,338 $ 17,590,744 $ 18,625,184 $ 19,477,949 Primary government Net investment in capital assets $ 41,485,102 $ 39,042,377 $ 44,268,814 $ 44,441,049 Restricted 786,678 898,739 1,010,521 1,096,698 Unrestricted 9,366,517 11,976,963 10,066,181 11,096,144 Total primary government net position $ 51,638,297 $ 51,918,079 $ 55,345,516 $ 56,633,891 -69- 2020 2021 2022 2023 2024 2025 $ 26,418,066 $ 27,474,959 $ 28,318,503 $ 28,247,394 $ 29,966,362 $ 30,984,388 1,137,740 1,220,301 1,641,206 2,103,290 1,506,861 2,380,496 10,534,206 10,799,339 10,024,011 10,499,248 10,231,472 10,427,879 $ 38,090,012 $ 39,494,599 $ 39,983,720 $ 40,849,932 $ 41,704,695 $ 43,792,763 $ 17,248,962 $ 18,373,335 $ 18,960,842 $ 18,887,277 $ 19,805,933 $ 20,702,474 3,000,493 3,921,634 4,679,804 6,079,346 6,338,765 6,382,876 $ 20,249,455 $ 22,294,969 $ 23,640,646 $ 24,966,623 $ 26,144,698 $ 27,085,350 $ 43,667,028 $ 45,848,294 $ 47,279,345 $ 47,134,671 $ 49,772,295 $ 51,686,862 1,137,740 1,220,301 1,641,206 2,103,290 1,506,861 2,380,496 13,534,699 14,720, 973 14,703, 815 16, 578, 594 16,570,237 16, 810,755 $ 58,339,467 $ 61,789,568 $ 63,624,366 $ 65,816,555 $ 67,849,393 $ 70,878,113 -70- CITY OF ARDEN HILLS Changes in Net Position Last Ten Fiscal Years (Accrual Basis of Accounting) Fiscal Year 2016 2017 2018 2019 Expenses Governmental activities General government $ 1,384,908 $ 1,322,106 $ 1,286,845 $ 1,337,262 Public safety 2,047,961 2,158,835 2,248,540 2,471,567 Public works 800,157 3,512,218 1,695,449 1,416,785 Parks and recreation 751,910 759,737 765,843 798,717 Economic development 361,029 276,841 391,156 369,256 Interest and fiscal charges - - - - Total governmental activities 5,345,965 8,029,737 6,387,833 6,393,587 Business -type activities Water 1,833,468 2,159,874 2,147,359 2,295,820 Sewer 1,513,219 1,780,260 1,654,079 1,663,498 Surface water management 468,965 481,026 499,049 513,209 Recycling 141,190 147,919 168,145 172,232 Total business -type activities 3,956,842 4,569,079 4,468,632 4,644,759 Total primary government $ 9,302,807 $ 12,598,816 $ 10,856,465 $ 11,038,346 Program revenues Governmental activities Charges for services General government $ 299,692 $ 314,166 $ 214,833 $ 250,643 Public safety 735,730 915,632 619,406 817,238 Public works 4,535 7,029 6,150 5,250 Parks and recreation 134,579 123,550 113,968 106,317 Operating grants and contributions 308,900 2,031,474 840,634 347,823 Capital grants and contributions 462,105 448,945 2,494,823 613,263 Total governmental activities 1,945,541 3,840,796 4,289,814 2,140,534 Business -type activities Charges for services Water 2,165,773 2,127,452 2,256,859 2,286,542 Sewer 1,989,066 1,796,144 1,769,466 1,892,740 Surface water management 812,044 834,973 839,499 850,971 Recycling 134,739 151,272 134,228 140,149 Operating grants and contributions 26,323 24,655 27,429 24,752 Capital grants and contributions 59,248 - 735,220 332,092 Total business -type activities 5,187,193 4,934,496 5,762,701 5,527,246 Total primary government $ 7,132,734 $ 8,775,292 $ 10,052,515 $ 7,667,780 -71- 2020 2021 2022 2023 2024 2025 $ 1,460,627 $ 1,283,605 $ 1,299,419 $ 1,505,270 $ 1,662,855 $ 1,602,925 2,737,348 2,804,933 2,663,521 2,889,826 3,305,431 3,594,695 1,267,480 1,310,895 1,796,184 1,327,617 1,445,074 1,858,891 634,195 883,155 1,013,507 1,136,248 1,061,167 1,334,792 480,307 411,016 199,988 140,255 364,361 140,148 - - - - - 162,483 6,579,957 6,693,604 6,972,619 6,999,216 7,838,888 8,693,934 1,996,083 2,166,362 2,473,906 2,677,247 2,558,358 2,992,669 1,665,146 1,754,753 1,817,972 1,864,808 1,982,052 2,131,855 546,365 599,084 610,730 673,556 678,340 721,145 139,840 154,611 173,092 154,519 168,958 261,657 4,347,434 4,674,810 5,075,700 5,370,130 5,387,708 6,107,326 $ 10,927,391 $ 11,368,414 $ 12,048,319 $ 12,369,346 $ 13,226,596 $ 14,801,260 $ 198,708 $ 189,138 $ 241,534 $ 270,989 $ 275,626 $ 256,512 431,830 926,665 957,785 449,995 442,564 1,131,289 3,900 5,735 7,040 4,725 7,175 5,760 13,114 90,632 101,097 88,372 79,917 80,818 409,403 565,106 375,965 805,615 333,628 675,463 634,369 1,263,520 902,926 597,246 1,275,811 1,475,591 1,691,324 3,040,796 2,586,347 2,216,942 2,414,721 3,625,433 2,316,891 2,789,472 2,823,414 3,054,674 2,708,831 2,740,879 1,870,850 2,110,766 2,209,253 2,394,498 2,429,894 2,667,875 876,527 902,044 937,652 958,807 990,153 1,018,879 136,865 177,057 169,905 151,340 161,882 257,434 25,365 27,213 30,323 29,253 42,325 53,425 60,661 1,024,414 651,490 129,949 250,294 296,228 5,287,159 7,030,966 6,822,037 6,718,521 6,583,379 7,034,720 $ 6,978,483 $ 10,071,762 $ 9,408,384 $ 8,935,463 $ 8,998,100 $ 10,660,153 -72- (continued) CITY OF ARDEN HILLS Net (expense) revenue Governmental activities Business -type activities Total primary government General revenues and other changes in net position Governmental activities General property taxes Tax increments (abatements) Franchise taxes Unrestricted grants and contributions Earnings on investments (charges) Gain on sale of capital assets Transfers Total governmental activities Business -type activities Earnings on investments (charges) Transfers Total business -type activities Total primary government Change in net position Governmental activities Business -type activities Total primary government Changes in Net Position Last Ten Fiscal Years (continued) (Accrual Basis of Accounting) Fiscal Year 2016 2017 2018 2019 $ (3,400,424) $ (4,188,941) $ (2,098,019) $ (4,253,053) 1,230,351 365,417 1,294,069 882,487 $ (2,170,073) $ (3,823,524) $ (803,950) $ (3,370,566) $ 3,278,287 $ 3,526,347 $ 3,578,894 $ 3,793,754 242,544 295,788 351,569 388,697 132,548 109,070 101,237 100,464 155,191 139,347 159,316 322,346 230,765 230,765 300,000 83,402 4,039,335 4,301,317 4,491,016 4,688,663 17,835 32,754 40,371 53,680 (230,765) (230,765) (300,000) (83,402) (212,930) (198,011) (259,629) (29,722) $ 3,826,405 $ 4,103,306 $ 4,231,387 $ 4,658,941 $ 638,911 $ 112,376 $ 2,392,997 $ 435,610 1,017,421 167,406 1,034,440 852,765 $ 1,656,332 $ 279,782 $ 3,427,437 $ 1,288,375 -73- 2020 2021 2022 2023 2024 2025 $ (4,888,633) $ (3,652,808) $ (4,386,272) $ (4,782,274) $ (5,424,167) $ (5,068,501) 939,725 2,356,156 1,746,337 1,348,391 1,195,671 927,394 $ (3,948,908) $ (1,296,652) $ (2,639,935) $ (3,433,883) $ (4,228,496) $ (4,141,107) $ 4,100,177 $ 4,293,895 $ 4,404,477 $ 4,570,332 $ 5,364,181 $ 5,814,797 273,043 396,891 338,899 36,365 (15,968) - 101,057 97,549 94,320 92,096 85,074 483,419 745,040 - - - - - 348,886 (30,940) (460,213) 649,693 545,643 558,353 17,500 - 197,910 - - - 237,000 300,000 300,000 300,000 300,000 300,000 5,822,703 5,057,395 4,875,393 5,648,486 6,278,930 7,156,569 68,781 (10,642) (100,660) 277,586 282,404 313,258 (237,000) (300,000) (300,000) (300,000) (300,000) (300,000) (168,219) (310,642) (400,660) (22,414) (17,596) 13,258 $ 5,654,484 $ 4,746,753 $ 4,474,733 $ 5,626,072 $ 6,261,334 $ 7,169,827 $ 934,070 $ 1,404,587 $ 489,121 $ 866,212 $ 854,763 $ 2,088,068 771,506 2,045,514 1,345,677 1,325,977 1,178,075 940,652 $ 1,705,576 $ 3,450,101 $ 1,834,798 $ 2,192,189 $ 2,032,838 $ 3,028,720 -74- THIS PAGE INTENTIONALLY LEFT BLANK CITY OF ARDEN HILLS Governmental Activities Tax Revenues by Source Last Ten Fiscal Years (Accrual Basis of Accounting) General Tax Property Increments Fiscal Year Taxes (Abatements) 2016 $ 3,278,287 $ 242,544 2017 3,526,347 295,788 2018 3,578,894 351,569 2019 3,793,754 388,697 2020 4,100,177 273,043 2021 4,293,895 396,891 2022 4,404,477 338,899 2023 4,570,332 36,365 2024 5,364,181 (15,968) 2025 5,814,797 — Franchise Taxes Total $ 132,548 $ 3,653,379 109,070 3,931,205 101,237 4,031,700 100,464 4,282,915 101,057 4,474,277 97,549 4,788,335 94,320 4,837,696 92,096 4,698,793 85,074 5,433,287 483,419 6,298,216 -75- CITY OF ARDEN HILLS Fund Balances of Governmental Funds Last Ten Fiscal Years Fiscal Year 2016 2017 2018 2019 General Fund Nonspendable $ 26,271 $ 288,519 $ 25,482 $ 22,438 Assigned 257,771 285,548 262,805 205,962 Unassigned 2,660,771 3,065,250 3,052,082 2,987,183 Total General Fund $ 2,944,813 $ 3,639,317 $ 3,340,369 $ 3,215,583 All other governmental funds Nonspendable $ 214 $ 664 $ 214 $ 214 Restricted 786,678 898,739 1,010,521 1,096,484 Committed 450,433 471,996 508,241 580,243 Assigned 3,872,938 6,138,393 2,873,879 4,057,047 Unassigned (217,607) (439,147) (189,404) (227,892) Total all other governmental funds $ 4,892,656 $ 7,070,645 $ 4,203,451 $ 5,506,096 Total all governmental funds $ 7,837,469 $10,709,962 $ 7,543,820 $ 8,721,679 -76- 2020 2021 2022 2023 2024 2025 $ 28,782 $ 31,152 $ 34,508 $ 39,554 $ 44,761 $ 48,300 196,467 239,096 259,015 287,553 225,928 122,096 3,155,257 2,899,564 3,072,714 2,878,628 3,050,074 4,051,711 $ 3,380,506 $ 3,169,812 $ 3,366,237 $ 3,205,735 $ 3,320,763 $ 4,222,107 $ 3,680 $ 3,878 $ 4,071 $ 4,293 $ 4,505 $ 12,683 1,137,740 1,220,287 1,641,192 2,103,255 1,506,861 2,460,293 619,013 654,042 658,457 713,987 835,010 819,179 5,762,592 5,990,247 5,212,244 6,356,837 4,038,256 4,363,597 (230,101) (223,538) (218,496) (219,580) (249,022) (246,386) $ 7,292,924 $ 7,644,916 $ 7,297,468 $ 8,958,792 $ 6,135,610 $ 7,409,366 $10,673,430 $10,814,728 $10,663,705 $12,164,527 $ 9,456,373 $11,631,473 -77- CITY OF ARDEN HILLS Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) Revenues Property taxes General property taxes Tax increments (abatements) Special assessments Licenses and permits Intergovernmental Charges for services Fines and forfeits Earnings on investments (charges) Franchise taxes Antenna lease rental fees Miscellaneous/other Total revenues Expenditures Current General government Public safety Public works Parks and recreation Economic development Capital outlay General government Public safety Public works Parks and recreation Economic development Debt service Interest and fiscal charges Total expenditures Revenues over (under) expenditures Other financing sources Bonds issued Premium on bonds issued Sale of capital assets Transfers in Total other financing sources Net change in fund balances Debt service as a percentage of noncapital expenditures Fiscal Year $ 3,260,537 $ 3,541,705 $ 3,578,628 $ 3,795,624 242,544 295,788 351,569 388,697 373,415 308,990 735,369 828,487 598,686 729,197 526,444 714,530 396,275 2,124,414 1,003,685 603,966 577,041 590,141 427,905 440,616 31,868 29,989 37,080 34,512 148,679 133,231 154,369 310,607 132,548 109,070 101,237 100,464 123,815 128,765 57,067 134,505 94,442 164,256 249,322 157,122 5,979,850 8,155,546 7,222,675 7,509,130 1,194,579 1,189,500 1,164,657 1,195,335 1,981,506 2,058,037 2,088,345 2,399,296 479,814 443,633 579,535 632,531 621,832 618,614 653,977 679,589 229,688 264,905 324,548 300,052 13,770 115,924 47,880 100,215 233,301 69,666 786,873 734,411 2,916,604 713,156 - 337,808 2,783,238 549,812 151,306 7,520 - 3,300 5,493,478 5,754,643 10,757,975 6,658,661 486,372 2,400,903 (3,535,300) 850,469 69,158 27,390 230,765 471,590 300,000 300,000 230,765 471,590 369,158 327,390 $ 717,137 $ 2,872,493 $ (3,166,142) $ 1,177,859 -78- $ 4,099,819 $ 4,289,994 $ 4,405,691 $ 4,583,077 $ 5,346,109 $ 5,815,629 273,043 396,891 338,899 36,365 (15,968) - 329,781 660,411 432,885 358,438 686,330 309,728 431,628 752,532 830,866 471,742 448,587 962,260 1,231,252 505,585 542,973 1,096,916 591,609 724,704 215,918 459,638 476,574 342,339 356,689 512,119 13,581 21,500 22,662 24,681 27,298 27,610 338,444 (29,384) (454,163) 642,853 538,936 549,366 101,057 97,549 94,320 92,096 85,074 483,419 140,707 146,101 139,304 143,305 147,444 127,828 432,118 474,889 239,414 215,885 56,977 554,090 7,607,348 7,775,706 7,069,425 8,007,697 8,269,085 10,066,753 1,201,143 1,137,188 1,204,619 1,384,179 1,598,568 1,518,034 2,435,773 2,708,137 2,546,051 2,704,012 2,824,305 6,171,074 675,739 618,236 914,148 682,510 716,140 723,346 547,787 626,629 665,776 721,291 751,835 1,023,288 415,839 349,341 138,251 81,788 307,334 81,436 107,865 290,193 210,148 47,249 299,107 111,065 98,396 168,558 478,515 - 204,169 1,993,539 1,708,553 418,226 3,525,125 1,039,477 22,675 133,150 273,197 610,787 1,138,817 718,275 - - - - - 89,370 5,910,097 7,967,478 7,759,139 6,818,600 11,340,639 11,364,300 1,697,251 (191,772) (689,714) 1,189,097 (3,071,554) (1,297,547) - - - 2,895,000 - - - - - 171,872 17,500 33,070 238,691 11,725 63,400 105,775 237,000 300,000 300,000 300,000 300,000 300,000 254,500 333,070 538,691 311,725 363,400 3,472,647 $ 1,951,751 $ 141,298 $ (151,023) $ 1,500,822 $ (2,708,154) $ 2,175,100 -% -% -% -% -% 0.9% -79- THIS PAGE INTENTIONALLY LEFT BLANK CITY OF ARDEN HILLS General Governmental Tax Revenues by Source Last Ten Fiscal Years (Modified Accrual Basis of Accounting) General Tax Property Increments Fiscal Year Taxes (Abatements) 2016 $ 3,260,537 $ 242,544 2017 3,541,705 295,788 2018 3,578,628 351,569 2019 3,795,624 388,697 2020 4,099,819 273,043 2021 4,289,994 396,891 2022 4,405,691 338,899 2023 4,583,077 36,365 2024 5,346,109 (15,968) 2025 5,815,629 — Franchise Taxes Total $ 132,548 $ 3,635,629 109,070 3,946,563 101,237 4,031,434 100,464 4,284,785 101,057 4,473,919 97,549 4,784,434 94,320 4,838,910 92,096 4,711,538 85,074 5,415,215 483,419 6,299,048 -80- CITY OF ARDEN HILLS Tax Capacity Value and Estimated Market Value of Taxable Property Last Ten Fiscal Years Fiscal Year Less Tax Less Fiscal Ended Real Personal Total Increment Disparity December 31, Property Property Tax Capacity District Contribution 2016 $ 14,364,828 $ 236,271 $ 14,601,099 $ 207,526 $ 2,280,682 2017 14,671,678 262,904 14,934,582 256,243 2,365,021 2018 15,751,958 276,244 16,028,202 308,152 2,141,470 2019 16,457,522 256,847 16,714,369 345,318 2,174,854 2020 17,592,301 268,599 17,860,900 273,444 2,627,733 2021 18,379,048 290,865 18,669,913 362,116 2,626,688 2022 18,571,778 126,061 18,697,839 367,689 2,932,378 2023 20,983,351 132,519 21,115,870 — 2,778,653 2024 23,151,240 135,929 23,287,169 — 3,037,636 2025 23,438,845 137,229 23,576,074 — 3,248,848 Source: Ramsey County Assessor -81- Adjusted Estimated Tax Capacity Total Market (ATC) Value Direct Tax Rate Value (EMV) $ 12,112,891 26.539 % $ 1,144,221,600 12,313,318 27.211 1,173,397,600 13,578,580 25.532 1,260,228,800 14,194,197 25.555 1,313,244,900 14,959,723 25.414 1,406,207,500 15,681,109 25.089 1,460,289,500 15,397,772 26.543 1,463,478,400 18,337,217 23.632 1,655,788,100 20,249,533 24.491 1,804,120,100 20,327,226 27.648 1,839,120,400 ATC as a Percentage of EMV 1.06 % 1.05 1.08 1.08 1.06 1.07 1.05 1.11 1.12 1.11 -82- CITY OF ARDEN HILLS Property Tax Rates Direct and Overlapping (1) Governments Last Ten Fiscal Years Direct Rate Overlapping Rates City Special Operating Ramsey School Taxing Fiscal Year Rate County District Districts Total 2016 26.539 % 58.885 % 26.245 % 9.052 % 120.721 % 2017 27.211 55.850 25.305 8.558 116.924 2018 25.532 53.962 28.464 8.249 116.207 2019 25.555 52.879 26.330 8.265 113.029 2020 25.414 52.302 24.964 8.249 110.929 2021 25.089 47.760 23.863 7.822 104.534 2022 26.543 48.067 23.420 9.971 108.001 2023 23.632 44.901 25.533 8.740 102.806 2024 24.491 45.455 25.030 8.964 103.940 2025 27.648 47.476 27.774 9.239 112.137 (1) Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners (e.g., the rates for special districts apply only to the proportion of the City's property owners whose property is located within the geographic boundaries of the special district). Source: Ramsey County Assessor -83- CITY OF ARDEN HILLS Principal Property Taxpayers Current Year and Nine Years Ago 2025 Taxable Taxpayer Capacity Value Rank Cardiac Pacemakers, Inc. $ 1,190,772 1 St. Paul Fire and Marine Insurance Company 755,874 2 Alatus Gateway, LLC 620,370 3 Space Center Arden Hills, LLC 605,926 4 Land O'Lakes, Inc. 520,146 5 Presbyterian Homes, Inc. 409,089 6 Arden Hills RE, LLC 366,250 7 Sup I Shannon Square, LLC 339,182 8 Caliber Lodging, Inc. 329,024 9 AHSL Partners, LLC 284,324 10 NSP CSM Corporation LSREF4 BISON, LLC Bethel University RAM Development, LLC Total $ 5,420,957 Total capacity value $ 20,327,226 Source: Ramsey County Assessor 2016 Percentage Percentage of Total City of Total City Capacity Taxable Capacity Value Capacity Value Rank Value 5.86 % $ 1,548,500 1 12.78 % 3.72 344,250 4 2.84 3.05 2.98 369,624 2 3.05 2.56 360,146 3 2.97 2.01 263,845 6 2.18 1.80 1.67 1.62 1.40 329,511 5 2.72 236,618 7 1.95 173,550 8 1.43 169,250 9 1.40 162,564 10 1.34 26.67 % $ 3,957,858 32.67 % $ 12,112,891 -84- CITY OF ARDEN HILLS Property Tax Levies and Collections Last Ten Fiscal Years Taxes Collected Within the Collections Fiscal Year Levied Fiscal Year of the Levy (Refunds) in Ended for the Percent Additions/ Subsequent December 31, Fiscal Year Amount of Levy (Abatements) Years 2016 $ 3,478,775 $ 3,408,642 97.98 % $ (70,133) $ 2017 3,641,290 3,562,166 97.83 (66,924) 2018 3,786,942 3,710,786 97.99 (58,021) 2019 3,938,420 3,871,967 98.31 (66,453) 2020 4,135,340 4,116,483 99.54 (18,857) 2021 4,280,080 4,218,186 98.55 (49,753) 2022 4,472,680 4,454,078 99.58 (5,699) 2023 4,718,680 4,616,384 97.83 (102,296) 2024 5,310,950 5,247,701 98.81 (55,467) 2025 6,028,012 5,980,252 99.21 (15,038) Source: Ramsey County Assessor Total Collections to Date Amount — $ 3,478,775 12,200 3,641,290 18,135 3,786,942 — 3,938,420 — 4,135,340 12,141 4,280,080 12,903 4,472,680 — 4,718,680 — 5,303,168 — 5,995,290 Percentage of Levy 100.00 % 100.00 100.00 100.00 100.00 100.00 100.00 100.00 99.85 99.46 -85- CITY OF ARDEN HILLS Ratios of Outstanding Debt by Type Last Ten Fiscal Years Governmental Business -Type Activities Activities Total Percentage CIP Revenue Primary of Personal Per Fiscal Year Bonds Bonds Government Income (1) Capita (1) 2016 $ — $ — $ — — % S — 2017 — — — — — 2018 2,571,952 2,571,952 0.71 260 2019 — 2,556,394 2,556,394 0.69 255 2020 — 2,340,838 2,340,838 0.62 236 2021 — 2,115,281 2,115,281 0.53 214 2022 — 1,879,724 1,879,724 0.42 194 2023 — 1,639,168 1,639,168 0.33 166 2024 — 1,388,611 1,388,611 0.27 141 2025 3,060,188 1,128,054 4,188,242 0.78 410 (1) See the Schedule of Demographic and Economic Statistics for personal income and population data. Note: Details regarding the City's outstanding debt can be found in the notes to basic financial statements. -86- CITY OF ARDEN HILLS Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years General Less Amounts Percentage of Fiscal Obligation Restricted for Total Tax Year Bonds Debt Service Total Capacity (1) Per Capita (2) 2016 $ — $ — $ — — % $ — 2017 — — — — — 2018 2,571,952 — 2,571,952 16.05 260 2019 2,556,394 — 2,556,394 15.29 255 2020 2,340,838 — 2,340,838 13.11 236 2021 2,115,281 — 2,115,281 11.33 214 2022 1,879,724 — 1,879,724 10.05 194 2023 1,639,168 — 1,639,168 7.76 166 2024 1,388,611 — 1,388,611 5.96 141 2025 4,188,242 414,924 3,773,318 16.00 369 (1) See Tax Capacity Value and Estimated Market Value of Taxable Property for tax capacity data. (2) See Demographic and Economic Statistics for population data. Note: Outstanding debt details for the City can be found in the notes to basic financial statements. -87- CITY OF ARDEN HILLS Direct and Overlapping Governmental Activities Debt as of December 31, 2025 Governmental Unit Debt repaid with property taxes Ramsey County County library Independent School District No. 621 Independent School District No. 623 Metropolitan Council Total overlapping debt City of Arden Hills Total direct and overlapping debt Net Estimated Estimated Debt Percentage Share of Outstanding Applicable (1) Overlapping Debt $ 134,134,078 2.52 % $ 3,375,974 11,938,579 4.92 586,929 191,816,528 13.20 25,322,378 153,767,394 0.76 1,174,613 1,402,434,516 0.35 4,872,408 35,332,302 3,060,188 100.00 3,060,188 $ 38,392,490 (1) The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of the county's taxable assessed value that is within the City's boundaries and dividing it by the county's total taxable assessed value. Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident and, therefore, responsible for repaying the debt of each overlapping government. Source: Assessed value data used to estimate applicable percentages provided by the Ramsey County Assessor. Debt outstanding data provided by the county. -88- Debt limit Total net debt applicable to limit Legal debt margin Total net debt applicable to the limit as a percentage of debt limit CITY OF ARDEN HILLS Legal Debt Margin Information Last Ten Fiscal Years Fiscal Year 2016 2017 2018 2019 $ 34,326,648 $ 35,201,928 $ 37,806,864 $ 39,397,347 $ 34,326,648 $ 35,201,928 $ 37,806,864 $ 39,397,347 Note: Under state finance law, the City's outstanding general obligation debt should not exceed 3 percent of total market value. By law, the general obligation debt subject to the limitation may be offset by amounts set aside for repaying general obligation bonds. Tax increment bonds are not subject to the debt limit; therefore, they are not included. -89- 2020 2021 2022 2023 2024 2025 $ 42,186,225 $ 43,808,685 $ 43,904,352 $ 49,673,643 $ 54,123,603 $ 55,173,612 — — — — — 2,645,264 $ 42,186,225 $ 43,808,685 $ 43,904,352 $ 49,673,643 $ 54,123,603 $ 52,528,348 — — — — — 4.8% Legal Debt Margin Calculation for Fiscal Year 2025 Total estimated market value $1,839,120,400 Debt limit (3% of market value) 55,173,612 Debt applicable to limit General obligation bonds 3,060,188 Less amount set aside for repayment of general obligation debt (414,924) Total net debt applicable to the limit 2,645,264 Legal debt margin $ 52,528,348 -90- CITY OF ARDEN HILLS Pledged Revenue Coverage Last Eight Fiscal Years Operating Less Operating Net Available Debt Service Fiscal Year Revenues Expenses Revenue Principal Interest Coverage 2018 $ 4,026,325 $ 3,279,800 $ 746,525 $ — $ 52,333 14.3 2019 4,179,282 3,387,940 791,342 — 94,288 8.4 2020 4,187,741 3,085,624 1,102,117 200,000 86,998 3.8 2021 4,900,238 3,301,491 1,598,747 210,000 78,800 5.5 2022 5,032,667 3,678,576 1,354,091 220,000 70,200 4.7 2023 5,449,172 3,901,853 1,547,319 225,000 61,299 5.4 2024 5,138,725 3,896,168 1,242,557 235,000 52,099 4.3 2025 5,408,754 4,490,278 918,476 245,000 42,976 3.2 Note 1: Includes Water and Sewer Funds. Operating expenses do not include depreciation. Note 2: Fiscal year 2018 represents the first year the City pledged revenue for utility revenue bonds. -91- CITY OF ARDEN HILLS Demographic and Economic Statistics Last Ten Fiscal Years Per Capita Arden Hills Personal Total Personal Median School Unemployment Fiscal Year Population (1) Income (3) Income (4) Age (6) Enrollment (5) Rate (2) 2016 9,966 $ 35,994 $ 358,716,204 36.0 11,401 3.6 % 2017 9,969 37,723 376,060,587 36.3 11,556 3.3 2018 9,889 36,553 361,472,617 36.3 11,647 2.8 2019 10,008 36,989 370,185,912 36.4 11,957 3.0 2020 9,939 37,932 377,006,148 36.2 12,061 7.0 2021 9,897 40,539 401,214,483 36.2 11,806 4.2 2022 9,682 46,623 451,403,886 36.2 11,747 2.6 2023 9,854 51,074 503,283,196 36.1 11,792 2.7 2024 9,879 52,525 518,875,303 35.9 11,632 2.9 2025 10,220 52,525 536,831,106 35.9 11,934 2.9 Sources: (1) Population data is obtained from the Metropolitan Council website. Fiscal year 2024 is estimated by city staff. (2) Unemployment rate information is from DEED for Ramsey County. (3) Per capita personal income prior to 2024 is obtained from the Metropolitan Council website. Per capita personal income for 2024 and 2025 is the 2024 data obtained from www.census.gov. (4) Personal income is calculated based on the population and per capita personal income. (5) Enrollment numbers are based off of Independent School District No. 621, Mounds View, from the Minnesota Department of Education website. (6) Median age is from www.city-data.com website. -92- THIS PAGE INTENTIONALLY LEFT BLANK CITY OF ARDEN HILLS Principal Employers Current Year and Nine Years Ago 2025 2016 (1) Employer Employees Employees Boston Scientific 3,000-3,500 2,200 Land O'Lakes, Inc. 1,250-1,750 800 University of Northwestern 1,000-1,500 960 Bethel University 750-1,250 970 Presbyterian Homes of Arden Hills 450-550 493 Delkor 300-350 160 Intricon 250-300 — Venture Solutions, Inc. 175-225 — Gradient Financial 150-200 — National Recoveries 150-200 — Ulteig Engineers, Inc. 150-200 — Health Partners Arden Hills Clinic 150-200 — International Paper — 120 Total employees in the City 10,021 (2) 11,553 (1) Information only readily available for the listed employers. (2) This is an estimate from 2024. Information for subsequent years is not yet available. Note: This does not purport to be a comprehensive list and is based on available data from the City's 2018 Official Statement and updates received since then through a survey of individual employers. Some employers do not respond to inquiries for employment data. Source: City staff research; business license renewals; Metropolitan Council -93- Function Police Total calls for service Fire Number of calls answered Highways and streets Street resurfacing (miles) Potholes repaired Sanitation (residential) — (see Note 2) Refuse collected (tons/day) Recyclables collected (tons/day) Recycling cleanup days Tons collected during cleanup days Parks and recreation Athletic field permits issued Water New connections Water main breaks Average daily consumption (thousands of gallons) CITY OF ARDEN HILLS Operating Indicators by Function Last Ten Fiscal Years Fiscal Year 2016 2017 2018 2019 4,413 5,152 5,331 5,253 930 986 1,039 1,138 0.25 0.20 1.00 0.30 600 700 800 750 8.75 8.80 N/A N/A 2.06 2.22 2.17 2.20 N/A N/A 2 2 N/A N/A 73.7 44.8 22 30 25 20 8 8 8 2 6 7 8 4 812 853 869 841 N/A — Not Applicable Note 1: Indicators are not available for the general city functions. Note 2: Recyclables — numbers based off of yearly tonnage total divided into 365 days in the year. Starting in 2018, the refuse collected information is no longer being provided as it is not readily available. Instead, information on recycling cleanup days is being provided. Note 3: Fire information provided by Lake Johanna Fire Department, which is contracted out by the City. Source: Various city departments -94- 2020 2021 2022 2023 2024 2025 3,924 4,232 4,102 4,468 4,278 4,898 1,044 1,178 1,077 1,255 1,535 1,723 2.32 4.42 7.10 0.65 0.65 3.00 1,000 700 600 350 350 300 N/A N/A N/A N/A N/A N/A 2.19 2.71 1.85 1.76 1.61 1.14 - 1 1 1 1 1 - 7.3 7.4 4.6 4.0 2.0 2 8 6 5 7 7 3 7 1 2 1 3 2 3 6 9 5 8 855 914 981 1,051 888 861 -95- CITY OF ARDEN HILLS Function General government Public safety Public works Parks and recreation Water Sewer Recycling Surface water management Total Full -Time Equivalent City Government Employees by Function Last Ten Fiscal Years Fiscal Year ?n1A ?017 ?n1R M19 4.56 4.10 4.61 5.10 2.47 2.19 2.39 2.34 3.47 2.70 3.08 2.86 6.09 5.58 5.96 6.13 3.46 3.42 3.24 3.39 4.24 4.21 3.99 4.11 0.16 0.15 0.23 0.32 2.64 2.43 2.30 2.35 27.09 24.78 25.80 26.60 Note: Seasonal staff are calculated by total hours worked (2,080 hours per year), added together to total an equivalent. Seasonal hours fluctuate throughout the year. Source: Finance and Administration -96- ?mn ?n?l ?m? ?mI ?ma ?()?Is 5.61 4.46 4.82 5.43 5.38 5.11 2.66 1.85 2.63 2.52 2.59 2.30 2.64 2.54 3.03 2.78 3.02 3.14 5.14 5.30 5.11 4.77 4.86 6.69 3.54 3.37 3.66 3.45 3.61 3.41 4.20 4.04 4.48 4.12 4.39 4.20 0.29 0.27 0.27 0.24 0.25 0.20 2.53 2.31 2.48 2.69 2.73 2.55 26.61 24.14 26.48 26.00 26.83 27.60 -97- CITY OF ARDEN HILLS Capital Asset Statistics by Function Last Ten Fiscal Years Fiscal Year 2016 2017 2018 2019 Function Highways and streets Streets (miles) 57 57 57 57 Streetlights 250 252 252 254 Traffic signals 18 18 18 18 Parks and recreation* Parks acreage III III 111 ill Parks 14 14 14 14 Trails acreage 54 54 54 54 Trails (miles) 21 21 22 22 Tennis courts 5 4 4 4 Softball/baseball fields 8 7 7 7 Basketball courts 10 10 10 10 Hockey/skating rinks 6 6 6 6 Permanent restrooms 3 3 3 4 Water Water mains (miles) 43 43 44 44 Fire hydrants 537 537 537 537 Maximum daily capacity (thousands of gallons) 1,500 1,500 1,500 2,160 Sewer Sanitary sewers (miles) 52 52 52 52 Storm sewers (miles) 25 25 25 25 * Information used for the parks and recreation section was taken from the Arden Hills Parks and Trails Guide from the Parks and Recreation Department. Note: No capital asset indicators are available for the general city functions. Source: Various city departments -98- 2020 2021 2022 2023 2024 2025 57 57 57 57 57 57 254 254 254 254 254 254 18 18 19 19 19 19 111 111 111 115 115 115 14 14 14 15 16 16 54 54 55 55 55 55 22 22 23 23 23 23 4 4 4 4 4 4 7 7 7 7 7 7 10 10 10 10 10 11 6 6 6 6 6 6 4 4 4 4 4 4 44 44 44 44 44 44 537 540 540 540 540 541 2,160 2,160 2,160 2,160 2,160 2,160 52 52 52 52 52 52 25 25 25 25 25 25 THIS PAGE INTENTIONALLY LEFT BLANK Attachment D CITY OF ARDEN HILLS RAMSEY COUNTY, MINNESOTA Special Purpose Audit Reports Year Ended December 31, 2025 THIS PAGE INTENTIONALLY LEFT BLANK CITY OF ARDEN HILLS RAMSEY COUNTY, MINNESOTA Special Purpose Audit Reports Year Ended December 31, 2025 Table of Contents Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards Independent Auditor's Report on Minnesota Legal Compliance Page 1-2 Schedule of Findings and Responses 4 THIS PAGE INTENTIONALLY LEFT BLANK LB CARLSON INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the City Council and Management City of Arden Hills, Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Arden Hills, Minnesota (the City) as of and for the year ended December 31, 2025, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated May 26, 2026. REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the City's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and, therefore, material weaknesses or significant deficiencies may exist that have not been identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We did identify one deficiency in internal control, described in the accompanying Schedule of Findings and Responses as finding 2025-001, which we consider to be a significant deficiency. (continued) -1- REPORT ON COMPLIANCE AND OTHER MATTERS As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. CITY'S RESPONSE TO FINDING Government Auditing Standards requires the auditor to perform limited procedures on the City's response to the finding identified in our audit and described in the accompanying Schedule of Findings and Responses. The City's response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response. PURPOSE OF THIS REPORT The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control and compliance. Accordingly, this report is not suitable for any other purpose. Respectfully submitted, n Z_X LB CARLSON, LLP Minneapolis, Minnesota May 26, 2026 -2- L13 CARLSON INDEPENDENT AUDITOR'S REPORT ON MINNESOTA LEGAL COMPLIANCE To the City Council and Management City of Arden Hills, Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America, and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Arden Hills, Minnesota (the City) as of and for the year ended December 31, 2025, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated May 26, 2026. MINNESOTA LEGAL COMPLIANCE In connection with our audit, nothing came to our attention that caused us to believe that the City failed to comply with the provisions of the contracting — bid laws, depositories of public funds and public investments, conflicts of interest, public indebtedness, claims and disbursements, miscellaneous provisions, and tax increment financing sections of the Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State Auditor pursuant to Minnesota Statutes § 6.65, insofar as they relate to accounting matters. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the City's noncompliance with the above referenced provisions, insofar as they relate to accounting matters. PURPOSE OF THIS REPORT The purpose of this report is solely to describe the scope of our testing of compliance and the results of that testing, and not to provide an opinion on compliance. Accordingly, this report is not suitable for any other purpose. Respectfully submitted, Z-19 LB CARLSON, LLP Minneapolis, Minnesota May 26, 2026 -3- THIS PAGE INTENTIONALLY LEFT BLANK CITY OF ARDEN HILLS Schedule of Findings and Responses Year Ended December 31, 2025 FINANCIAL STATEMENT FINDINGS SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER FINANCIAL REPORTING 2025-001 Segregation of Duties Criteria — Internal control over financial reporting. Condition — The City of Arden Hills, Minnesota (the City) has limited segregation of duties in a number of areas. Questioned Costs — Not applicable. Context — The condition applies to multiple areas. Repeat Finding — This is a current year and prior year finding. Cause — The limited segregation of duties is primarily caused by the limited size of the City's finance department staff. Effect — One important element of internal accounting controls is an adequate segregation of duties such that no one individual should have responsibility to execute a transaction, have physical access to the related assets, and have responsibility or authority to record the transaction. A lack of segregation of duties subjects the City to a higher risk that errors or fraud could occur and not be detected in a timely manner in the normal course of business. Recommendation — This condition is common to organizations of your size. We recommend that the City segregate duties as best it can within the limits of the staff available. Any modifications in internal control in this area should be viewed from a cost -benefit perspective. Management Response — There is no disagreement with the audit finding. The City reviews and makes improvements to its internal control structure on an ongoing basis and attempts to maximize the segregation of duties in all areas within the limits of the staff available to eliminate or mitigate this internal control weakness. However, the City does not consider it cost -beneficial at this time to increase the size of its staff in order to further segregate accounting functions. -4- THIS PAGE INTENTIONALLY LEFT BLANK MEMORANDUM DATE: June 8, 2026 STAFF COMMENTS - 6A TO: Honorable Mayor and City Councilmembers Jessica Jagoe, City Administrator FROM: David Swearingen, Public Works Director/City Engineer SUBJECT: Transportation Update Budgeted Amount: Actual Amount: Funding Source: A verbal update will be provided at the City Council meeting. Page 1 of 1 Approved: June 8, 2026 CITY OF ARDEN HILLS, MINNESOTA CITY COUNCIL WORK SESSION MAY 11, 2026 5:30 P.M. - ARDEN HILLS CITY COUNCIL CHAMBERS CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, Mayor Grant called to order the City Council Work Session at 5:30 p.m. Present: Mayor David Grant; Councilmembers Tena Monson, Emily Rousseau and Kurt Weber Absent: Councilmember Brenda Holden (excused) Also present: City Administrator Jessica Jagoe, Public Works Director/City Engineer David Swearingen, Assistant to the City Administrator/City Clerk Julie Hanson and Community Development Director Jake Reilly Councilmember Monson requested that Item F, Public Hearing Agenda Format be moved to Item B. She would like to address that one with the possibility of ADUs being brought forth soon. 1. PUBLIC INQUIRIES/INFORMATIONAL None. 2. RESPONSE TO PUBLIC INQUIRIES None. 3. AGENDA ITEMS A. State of the City Policy City Administrator Jagoe said this discussion follows the April 13 Work Session where Staff asked Council to review the draft policy. Council requested that Staff send the three questions regarding next steps on policy language via email. The questions surrounded date/time, location ARDEN HILLS CITY COUNCIL WORK SESSION — MAY 11, 2026 2 and topics. The packet outlined the responses received. Staff is seeking direction to move forward with majority or discuss the questions tonight, as there were some varying answers. Mayor Grant said he would read through the questions. Does Council wants the event to be held annually? He noted there are four votes for yes. Does Council want to set a permanent date and time for the event? The responses were split with one maybe and one no. Councilmember Rousseau said we should go with the majority. Discussion ensued about not choosing a specific date, rather the draft policy outlines that the event would be held on the third or fourth Saturday. Further discussion ensued that the majority want the event to be held in the spring. Discussion was that a new member of the City Council may not be up to speed with everything, if it is held in the spring. If the event is held in the fall, it will back up to elections. Council agreed the State of the City event will be held in the spring. Mayor Grant noted the majority want the location to be City Hall. Councilmember Monson suggested that other committee specialty topics could be presented by someone that is on that specific committee or commission. Councilmember Rousseau disagreed and said some of these are already specialty topics. Council agreed to option #2 in the packet which states "All topics, except for the introduction which would be presented by the Mayor, would be rotated annually for Councilmembers to present." Mayor Grant asked if there was anything else Staff needed. City Administrator Jagoe asked what Council would like to do with the 2026 State of the City. Councilmember Rousseau would like a specific section for Parks to be added to the topics list. Council agreed that Parks will be separated from Public Works and will be its own topic. Council also agreed to not hold an event in 2026 and schedule the next State of the City in the spring of 2027. B. Public Hearing Agenda Format (Item 3F on published agenda) City Administrator Jagoe said this discussion is follow up to Council direction at the April 13 work session to look at the agenda format of public hearings and new business. The current format was established in 2018. Before that change, the City Council held the public hearing and the motion for that public hearing as one action item. Staff reached out to other cities. We received 10 responses. All of those responders indicated that they handle that business as one action under the public hearing agenda item. Councilmember Rousseau would like to close out the action at the same time it is presented, under the public hearing section. ARDEN HILLS CITY COUNCIL WORK SESSION — MAY 11, 2026 3 Councilmember Weber said we would have the presentation, public hearing, discussion and vote all on one agenda item. Council agreed the new format will be implemented. C. Overnight Parking Regulations (Item 3B on published agenda) City Administrator Jagoe said this is a follow up from the April 13 regular meeting direction. Council asked Staff to collect additional information from the Ramsey County Sheriff Office (RCSO) on parking citations. She outlined the current language. 1) Winter parking regulations say in the event of a snowfall of two inches or more, no parking is allowed on city streets until snow removal has occurred. 2) In residential districts we currently don't allow more than four vehicles to be parked on a driveway. 3) No vehicle is allowed to park on the street for more than six hours. 4) No vehicle is allowed to park on any street between the hours of 2:00 a.m. and 6:00 a.m., year- round. City Administrator Jagoe said we do allow residents to apply for and receive temporary parking permits. We require 24 hour's notice because Staff has to process that. We work with the Public Works Director and then we have to get notice to the RCSO to prevent ticketing. RCSO has confirmed the citations are administrative fines ranging from $15-$30 for the city portion of the fine. That wouldn't include court or processing fees. As an example, violation of the 2:00-6:00 a.m. restriction results in a $15 administrative fine from the City. After court and processing fees it can be up to $31. For the city -portion of the administrative fine, 50% goes to the City and 50% goes to the State General Fund. Staff is seeking direction on any changes to these restrictions. We can have seasonal restrictions. Some cities restrict parking on the street from November 1 through April 30. We can install additional signage to communicate the no parking from 2:00-6:00 a.m. The Public Works Director said they could be placed in the same location where the 25 mph speed limit signs are. Councilmember Rousseau asked when RCSO gives administrative tickets, are they counting how many calls and tracking activity when we negotiate with them. City Administrator Jagoe said they are not. We are only billed for calls for service that originate as a 911 call and a deputy is dispatched. Mayor Grant said these are coded as "parking complaint". There isn't an actual complaint, it's just the officer writing a citation. Councilmember Weber said the only complaints he has seen have been in the winter. Is this a problem for our plows? Public Works Director/City Engineer Swearingen confirmed there are certain locations in the city where that becomes an issue. Councilmember Weber can't see any reason why we wouldn't allow overnight parking on the street during the summer. Maybe the fine should be bigger if someone blocks a plow. The issue is our plows having to go back to clean up. The city needs to be able to recoup that. He thinks it should be allowed in the summer. ARDEN HILLS CITY COUNCIL WORK SESSION — MAY 11, 2026 4 Councilmember Monson said these regulations, stacked together, are a problem for her. No winter parking, but you can only have four cars in the driveway and you can't be on the road for more than six hours. It can penalize large families and multi -generational households. It will become more complicated if/when we allow Accessory Dwelling Units (ADUs). She asked Staff what recommendations they had, as this is code based. Community Development Director Reilly said he hasn't surveyed surrounding communities. He knows of other communities that have winter parking bans and allow up to six vehicles per driveway. We can survey surrounding communities. Councilmember Monson would be good with increasing the number of cars allowed on a driveway. She thinks the 6 hours feels short. She agrees we should have winter parking restrictions in place. Mayor Grant said a standard shift of patrol officers isn't going to time check all of the cars on the road. He said RCSO will not enforce violations of more than four cars on a driveway. Staff confirmed. That would be a code violation and code enforcement would be involved. Mayor Grant is okay with seasonal winter parking restrictions. We don't have sidewalks, so people walk in the streets. The restrictions were intended to encourage people to park on their driveways, not on the street. If this changes, more residents may choose to park on the street and in many cases that's a safety concern for other residents who walk on the street. Councilmember Rousseau said she is not concerned with people parking on the street overnight, with the exception of the winter months. She's more concerned about the safety aspect. She suggested there still be a time restriction of maybe 10 hours. She doesn't know that it makes a difference if someone parks four large vehicles vs. eight small cars on a driveway. Councilmember Weber said he could fit 15 cars in his driveway. He thinks 6 is a good number. He said it won't be enforced. What is the penalty if someone has more than what is allowed? City Administrator Jagoe said through the code enforcement process we have notified a resident. She is not aware of anyone who didn't get into compliance after that notification. If they did not comply, we can issue a citation. We would start that process through RCSO but the city would initiate a citation. Councilmember Weber said it would be code enforcement, not law enforcement. Staff confirmed. Councilmember Rousseau said our current code restricts parking on lawns. Staff confirmed. Councilmember Weber thinks allowing parking for up to 12 hours is acceptable. Mayor Grant is against allowing more than four vehicles in a driveway. We leave ourselves open to residents storing inoperable vehicles. He hasn't heard that this is a problem. ARDEN HILLS CITY COUNCIL WORK SESSION — MAY 11, 2026 5 Councilmember Monson believes the code restricts inoperable vehicles. She said if someone has four cars and two are inoperable, a complaint can be filed against the inoperable vehicles, even though the household in within the number allowed by code. Staff confirmed. Councilmember Weber said we could leave the number as is, for now, and revisit it when discussing ADUs. Councilmember Monson is fine with that approach. She wants to see the winter parking regulations put in place. Discussion ensued that winter parking restrictions will be put in place from November through April. Further discussion ensued regarding the 6 hour limit. Council decided a vehicle may be parked on the street for up to 10 hours. The number of vehicles allowed to park in a single driveway will be explored during upcoming ADU discussions. D. Twin Cities Gateway Funding (Item 3C on published agenda) City Administrator Jagoe said the Twin Cities Gateway Visitor Bureau awarded Arden Hills $15,800 for 2026. We had 2025 carry over dollars in the amount of $3,682.25. The total that we have is $19,482.25. Council gave some of those dollars to the Minnesota Braille Challenge which occurred in February. The remaining amount is $19,022. Council is being asked to discuss how to disperse that money. Staff received a request from Rib Fest. Council has expressed interest in allocating dollars to the 75th Anniversary Event. City Administrator Jagoe said starting in 2026, the visitor bureau will no longer allow money to be carried over into a new year. Any unused funds at the end of the year will go back into the pool of money to be allocated to everyone the following year. Mayor Grant said Rib Fest is an annual event, where the 751h Anniversary is a one time event. He would lean toward giving more money to the 751h. He doesn't have a recommended amount but believes the bulk should be for the 75th Councilmember Rousseau asked what the budgeting for the 751h Anniversary looks like. Assistant to the City Administrator/City Clerk Hanson said we have about $20,000 in private sponsorship dollars. We used $12,500 last year from Twin Cities Gateway. We just upped the number of drones at a cost of an additional $2,500. Other budget needs include marketing of about $5,000, swag of about $6,000-$7,000. She would love to see an additional $12,000 towards marketing and swag. We could use sponsorship dollars but the $21,000 we have raised will be used for the bands, beer and other expenses for the celebration. Mayor Grant asked what Rib Fest got last year. City Administrator Jagoe said it was $4,000 last year. ARDEN HILLS CITY COUNCIL WORK SESSION — MAY 11, 2026 6 Councilmember Monson said if we used $14,500 to the 75th, that would leave almost $5,000 for Rib Fest. Councilmember Weber said in future years he would like to see some of the money go to Northeast Youth & Family Services (NYFS) for their events. They are a multi -city organization. He isn't sure how they will fit in, but he would like to find a way to support them. Councilmember Rousseau said this is a unique year because it's the 50th Anniversary for NYFS. They will be doing a special event in November. She isn't sure if they are looking to expand outside of the region to draw people in. She said the goal of the Gateway funds is to get people to spend the night in a local hotel. Mayor Grant said there are guidelines on how the funds can be spent. NYFS could apply to receive dollars, however, their outreach would need to meet the requirements of the visitor bureau. Councilmember Weber said the National Guard are putting on an event that could draw people into our city. NYSF could do the same thing. He doesn't want us to limit ourselves to just supporting Rib Fest. Expanding the funds to other entities, like NYFS is a target for him. Councilmember Rousseau said when we first learned of the Gateway funds, Staff reached out to the school district to see if any groups could benefit from these dollars. She has talked to the American Indian parent group who put on a pow -wow every other year. They didn't hear anything from the school about this being an option. They have a lot of people from out of the area who attend those events. She noted there may be other groups who could benefit from the funds. She would like to see us attempt to reach out to the school again. Discussion ensued that the Army hasn't received any funds for the Norwegian Foot March. They aren't allowed to accept these funds. The event is being organized by a different entity, now. They will reach out to us in the future, if the organizer is authorized to request funds. Council agreed that $5,000 will go to Rib Fest and the balance will go to the 75th Anniversary. E. Parks, Trails and Recreation Committee (PTRC) Composition (Item 3D on published agenda) Public Works Director/City Engineer Swearingen said the current composition of the Parks, Trails and Recreation Committee (PTRC) is twelve members with one youth member. The PTRC recommended that Council approve a reduction in membership to be seven regular members and two youth members. He noted the packet outlines the composition of surrounding cities' similar committees. Mayor Grant asked why we would reduce the number of members, if we have people wanting to serve. Councilmember Rousseau said we have been tending to have fewer committee members. One of the challenges, if the committee is full, is having time for everyone to speak at the meetings. It is difficult to get work done without extending the meeting length. ARDEN HILLS CITY COUNCIL WORK SESSION — MAY 11, 2026 7 Councilmember Weber said quorum can become difficult to achieve, as well. If there are 13 members, you need 7 for a quorum. We are larger than most surrounding cities. He supports seven regular and two youth members. Mayor Grant said we are a city that values its parks and we seem to have residents willing to serve. He thinks we've had 13 members for a long time. He wouldn't want to limit involvement of residents who have an interest in parks. Councilmember Monson said the PTRC is proposing this recommendation. They feel there is an opportunity to be more productive while being respectful of people's time. Even if we have 12 people that want to serve, the group can struggle to get things done due to how many people are involved in the conversation. This change could facilitate a clearer pathway to action. She defers to the PTRC's recommendation. City Administrator Jagoe clarified the language included is "...at no time shall there be more than two members that meet the criteria of a youth committee member." Currently if a high school student applies and the youth committee position is already taken, that applicant could be placed in a regular member slot. If that language stays as it is, all regular members will be required to be out of high school to participate. Discussion ensued that the two youth that are currently serving will placed in the youth committee member slots. One of those committee members was brought on as a full committee member last month. That youth can be reappointed in August for another one year term. Councilmember Rousseau said there is a youth member on the Economic Development Commission (EDC) who is thriving in that group. It can take youth a little bit of time to get to know the people they are serving with and gain a comfort level. She would like to see the terms of that EDC member and the recent PTRC member extended for another year. Councilmember Weber is not opposed to opening the Planning Commission to a youth position. He is impressed with how the youth on our committees are doing and their involvement. He isn't trying to have that discussion right now, but he is open to having it in the future. Councilmember Monson said the Planning Commission is a statutory commission. Because of that, no youth positions are allowed. The PTRC will consist of seven regular members and two youth members. F. Volunteer Recognition Policy (Item 3E on published agenda) Assistant to the City Administrator/City Clerk Hanson said Personnel discussed a volunteer recognition policy for the City. Currently there is nothing formal. Staff surveyed surrounding communities and found that no other city had a policy. They have procedures and practices that they follow. Staff consulted with the City Attorney about criteria for public expenditures and what options we have for recognition. The draft policy is attached in the agenda packet and Staff is seeking feedback on how to proceed. Mayor Grant asked if we can include recognizing sports coaches. ARDEN HILLS CITY COUNCIL WORK SESSION — MAY 11, 2026 8 Council agreed to add specific language to include coaches. Councilmember Rousseau was disappointed to learn that small items, like a reusable mug, are not allowed public expenditures. She knows New Brighton gives you a street sign with the volunteer's last name on it. She isn't sure how they pay for those. She did try to look into ways to give long term volunteers a small token of appreciation. Mayor Grant said state statute determine what the City can gift to people. It is quite a low amount. Councilmember Weber asked if anyone asked other cities how they pay for these items. Assistant to the City Administrator/City Clerk Hanson said one city told her they have never run it by the City Attorney. Councilmember Weber said this is a big deal and he thinks we could have a discussion with the Arden Hills Foundation. He thinks there is no higher service than serving your city as a volunteer. This fits right in with what the Arden Hills Foundation does. Mayor Grant sits on the Arden Hills Foundation board, as President. He can take this item to them and see what they say. He needs to have a specific request. Maybe there are different levels. Is it 10 people a year? Is it 100? Councilmember Weber said Staff can calculate what that is. Turnover on our commissions and committees isn't very high. He doesn't think it will be a huge number every year. It will be minor but this may be the only way we would be able to offer something to outgoing volunteers. He asked Mayor Grant to bring it to the foundation and come back to discuss what the board needs. Mayor Grant asked Staff to project what that may look like. Councilmember Rousseau said she would like to accept the draft as presented, with the added language about coaches. We can modify it once we hear what the Arden Hills Foundation says. Mayor Grant said whatever the Arden Hills Foundation does would be above and beyond what is in our policy. Councilmember Weber said the Arden Hills Foundation could make it their own policy. For example "Upon recommendation from City Council, resigning committee/commission members or coaches can be presented with a gift on behalf of the Arden Hills Foundation." Mayor Grant said he will work with Staff to see what they can come up with. G. Alternative Funding Sources Discussion Finance Director Yang said as part of the City's three-year strategic plan, the City is evaluating its long-term fiscal strategy with a specific focus on alternative revenue sources. She provided a list of various funding opportunities that were compiled for this discussion. Some of the opportunities would require state legislative action and others would require Council action. She is seeking Council direction on where to focus Staff efforts. Secondly, as part of the broader strategic planning ARDEN HILLS CITY COUNCIL WORK SESSION — MAY 11, 2026 9 initiative, Staff is also seeking direction on reengaging the Financial Planning and Analysis Committee (FPAC). Councilmember Weber said the local option sales tax would require state action. He is curious what action is required, for Cannabis. Discussion ensued regarding which surrounding cities have a cannabis retail operation. Finance Director Yang said she would have to look into it more. This discussion is a high-level overview of the different options. If Council feels we should pursue something like that, she can find out more information. Mayor Grant said St. Anthony had a unique approach. The city is not involved on a day to day basis but are more of a silent partner. That takes the burden off of the city. He said Mounds View is discussing operating the store. Councilmember Weber said that would be the second part to his question. What would the structure be? He isn't familiar with the structure of a municipal liquor store. He assumes it's a manager, under the City Administrator or Finance Director, with some employees under the manager. He is interested to learn more about cities working with partners. He thinks that's probably the better way to go. These retailers are coming. Every city has to issue this type of license. He can't see a better option then to have the city be in control over enforcement. City Administrator Jagoe said Staff can bring back more information on cannabis, especially if it is the city partnering with another entity and it's not a municipal store. If we were to have a municipal store, it would not satisfy the requirement to allow at least one retail license. Working in partnership with another entity may look different. Community Development Director Reilly said the state is enabling legislation that allows for cannabis, but requires a city interested in opening a municipal cannabis store to already operate a liquor store. You are not allowed to have a stand-alone cannabis operation. You have to already have an established municipal liquor program. We would have to have both. It is correct that a municipal cannabis license, if a city chooses to have one, can't take away the opportunity for other options. He said Anoka and Elk River started building their store before the Office of Cannabis Management (OCM) figured out how it would work. There was a study in Wayzata that showed that if they entered a municipal cannabis enterprise, the cash receipts would be in excess of $2 million in year one, eventually flattening out to be revenue positive, regardless of the market. Councilmember Rousseau asked if the income data on municipal liquor and cannabis stores is public data. Community Development Director Reilly said there is a sub -group of the Minnesota Municipal Beverage Association. He can get that information to the City Administrator. Councilmember Monson said in the memo Staff recommends forming a committee with the intent to dive into these topics in a way that gets vetted and comes back to Council with some choices. She said Council can't create an effective strategy with the time we have. She would support a committee that can sort through the information and bring options. She would volunteer to be the Council Liaison. ARDEN HILLS CITY COUNCIL WORK SESSION — MAY 11, 2026 10 Councilmember Weber said considering how much time this Council spends on the budget and the work that it produces for Finance Director Yang, if we can get a committee to parse the information, it would go a long way in helping this Council with getting things done. Mayor Grant is good with forming a committee. I can probably be a staff -operated committee. The committee can do the financial analysis. He said other considerations are a licensing center. It may be unlikely since both Roseville and New Brighton have one. It could be quite lucrative. Councilmember Rousseau supports creating a committee. We have community members with expertise. She would like to suggest the old City Hall site for consideration. Can we make any money off of that location? Years ago the Planning Commission unanimously approved a business units in that location. It never moved forward, due to resident's concerns. We have that space and maybe in the long term we could use that for a public works space. In the short term there may be an opportunity to look at ball fields or something else that wouldn't include constructing a building. Organizations pay an hourly rate for a grass field, more if it's turf. We could make income over the next eight or so years, while Rice Creek Commons is being developed. Mayor Grant said that land has the size and geographic constraints to house a maintenance facility. He thinks creating fields would take a lot of work due to the sloping grade toward 96. The City has no interest in selling that property until we know what we are doing for equipment storage for TCAAP. He noted a pilot program on page 2 of 3 in the packet. He encouraged Staff to cross that off the list because they don't work. There is no permanence. He would like to see something with an ongoing revenue stream. Councilmember Weber asked if Mayor Grant is giving direction to Staff to strike something, without Council discussion. Mayor Grant said historically those don't work. He wouldn't want Staff spinning their wheels if they determine it isn't going to work. He said we need to be establishing ongoing revenue. Councilmember Weber said he generally agrees. However, he doesn't know enough about the program Staff is presenting to just scratch it without learning more. If there is an opportunity for the city to get a diversified revenue stream, he would like to learn more information. He understands it is voluntary. He understands that may not work. It is certainly worth exploring. He asked Staff what amount of work would be required to explore that option. Finance Director Yang said she would look at other cities. She knows St. Paul and Minneapolis have programs. She knows that includes Staff and Council to work with those organizations to try to get a voluntary payment. It will require some time and agreement from both sides. Organizations recognize they are utilizing City roads and the City would ask if they are willing to provide a voluntary payment. Councilmember Monson asked if that is something we can tie into a permit. If a non-profit comes in we tell them they need to do a pilot with us. She isn't sure of the legal statutes. She is comfortable leaving it on the list. It can be at the bottom of the list. ARDEN HILLS CITY COUNCIL WORK SESSION — MAY 11, 2026 11 Councilmember Weber said he strongly supports having a liaison. Especially for this. But even for Karth Lake. They want a liaison. He doesn't think there is much coordination between a liaison and Staff that would impede that. Mayor Grant said he is offering to be the liaison. City Administrator Jagoe said we would bring this item forward with an ordinance to bring that back in to our list of committees and commissions. At that time, we can bring forward the liaison appointment discussion. City Administrator Jagoe said we will bring back the old City Hall site topic as part of the city - owned land discussion as part of the strategic planning. She will task Community Development Director Reilly with that so we can do the comprehensive look at all of the city properties and have Finance Director Yang work on the funding. Council recessed the Work Session at 6: 55 pm. Council reconvened the Work Session at 8:32 pm. H. H1 Human Rights Commission And H2 Immigration Enforcement Discussion City Administrator Jagoe said this is follow up to the February 9 work session discussion about resuming the Human Rights Commission and soliciting for volunteers. Staff found the Human Rights Commission was established under Ordinance 169 in 1973. The language within the ordinance outlines that it is a 10 member commission with commissioners being appointed to 1 or 3 year terms. Regular commission members need to be over 21 years old with options for youth commissioners under 21. The ordinance discusses ad -hoc members that could be appointed for 1 year terms. The members are appointed by the Mayor with the advice and consent of the Council. City Administrator Jagoe said Shoreview's Human Rights Commission is comprised of 9 to 11 members and they allow 2 to 3 youth representatives, who have full voting privileges. She shared some language in the packet from Shoreview's duties and responsibilities for their Human Rights Commission. Staff is seeking direction from Council on potential language updates to the ordinance. Staff would bring that forward at a future meeting for adoption and will begin recruitment for members. Council is also being asked to provide direction on whether or not there should be a Council and/or Staff liaison appointed to the commission. Councilmember Rousseau said Shoreview recently reviewed their ordinance. They're governing document doesn't call themselves "The Village." She asked if we looked at that to make sure everything aligns. City Administrator Jagoe said she looked at their city ordinances. She could do a side by side comparison to make sure we align with their language, if Council wants us to mirror Shoreview. Councilmember Rousseau said she is interested in moving forward with the Human Rights Commission. Her preference would be to have 9 members with 2 youth. She would like to get some feedback from residents about what it looks like. ARDEN HILLS CITY COUNCIL WORK SESSION — MAY 11, 2026 12 Councilmember Weber would like 7 regular members and 2 youth members. He noted the staggered years, starting with a full term than a partial term and a less partial term. That may help to avoid turn over all at once but he isn't sure how that works logistically. He would like to see a liaison appointed for this commission. Mayor Grant said sometime between 1973 and 2000 the Human Rights Commission disbanded. He isn't aware of the reason. He said this commission should have a liaison. They will have to operate under whatever is in city code and from there it will grow and expand as bylaws are written. Councilmember Monson asked which Staff would support this commission. City Administrator Jagoe she would have to look back to see. She thinks it would be the City Administrator. Councilmember Monson would like this to be consistent with what the other committees and commissions do. She likes the 7 regular and 2 youth members. She would like to change the part where it outlines the Mayor appoints with Council's advice and consent. She would like it to state the full Council will approve appointments, as is done with other commissions, with the exception of the EDA which is outlined in state statute. She said yes to a liaison. She likes the idea of ad -hoc members being allowed for one-year terms. Depending on the topic, we might want to bring in additional members to help support a narrow topic. She already received a note from a resident that is interested. Councilmember Rousseau would like there to be a liaison. She thought the "over 2 1 " language is not consistent with other groups. City Administrator Jagoe said we would align the language with how youth membership is presented in our other commissions. Councilmember Rousseau said she would also like the language to say the full council will approve appointments. City Administrator Jagoe said Staff will verify if there is anything in state statute. If not, appointments will mirror other committees and commissions. Discussion ensued that appointing a liaison can wait until a later date when the full Council is present. Councilmember Monson asked if anyone had specific topics that this commission will address. Discussion ensued that Metro Surge is over but immigration enforcement is not. Protecting election integrity is another topic for this commission. Further discussion ensued that Ramsey County facilitates the elections in Arden Hills. Council agreed we don't have to decide topics tonight. Once the commission is restored, the commission will set their own priorities. Staff will prepare an amendment to the Human Rights ordinance and bring it to a future meeting. City Administrator Jagoe said the Use of City Property policy, to define what a staging area is and a Sharing of Data Policy remain to be discussed. She doesn't have any additional information ARDEN HILLS CITY COUNCIL WORK SESSION — MAY 11, 2026 13 prepared for tonight's meeting. She wanted Council direction to confirm that Council still wants Staff to bring these items forward. Councilmember Weber said he lumps them in with Immigration Enforcement because it's relative. He spoke to a resident about Shoreview's support for Quincy House. They provide resources for folks who are unable to work. He said the Shoreview Foundation, so not the City of Shoreview, provided $5,000 to the Quincy House. That has gone a long way. He thought Mayor Grant, who serves as president of the board, could bring something similar to the Arden Hills Foundation. Donating to a local agency that provides support to those who find themselves in a difficult situation. Discussion ensued about who Quincy House serves. It is the Mounds View School District area. Mayor Grant said he will bring it to the Arden Hills Foundation but pointed out the foundation doesn't have unlimited resources. Discussion ensued that residents are able to dedicate their donations to the Arden Hills Foundation for a specific purpose. We could set up a Quincy House fund so people can donate directly to them. Further discussion ensued that this is a clear goal and a foundation that bears the name of our City should be able to help. Mayor Grant said the foundation will be presenting 8 scholarships this year. The Arden Hills Foundation's focus is clearly on Arden Hills Residents. If Staff provides some information on the Quincy House he will bring the information to the foundation board. Mayor Grant said City Administrator Jagoe asked if Council would like Staff to continue working on the policies for City Property use and Sharing of Data. Does Council want her to finish those tasks? Council agreed that Staff should continue working on the Sharing of Data and Use of City Property policies and bring the information back to Council when ready for discussion. I. Code of Conduct Not Discussed. J. Rice Creek Commons/TCAAP Discussion Not Discussed. K. Agenda Planning Not Discussed. 4. COUNCIL/STAFF COMMENTS City Administrator Jagoe asked Council to discuss changing the work session start time to be 5:00 p.m. She received a request from Councilmember Holden that, if we make the change, that it ARDEN HILLS CITY COUNCIL WORK SESSION — MAY 11, 2026 14 begins on the second meeting in June. She said those would be special meetings and any agenda can't be changed once posted. Mayor Grant said we tend to have more items on the agenda than we are able to get to. If items aren't on the agenda, we can't discuss them at a special meeting. If we agree to 5:00 start times we may see long agendas and we may not always be able to get to all of those items. Councilmember Weber asked how long the earlier start time would be in place. Discussion ensued that it is typically through the August meetings. Councilmember Weber said he'd be open to changing the ordinance to have the meetings start at 5:00 permanently. Councilmember Rousseau supports that. If the start time is 5:00 we can avoid reconvening after the regular meeting and staying so late. Councilmember Monson said she is okay with work sessions permanently starting at 5:00 pm. Mayor Grant is opposed to changing the ordinance. There are three who want to move forward with that. He asked what happens after August when Councilmember Holden can't make it at 5:00 pm. Councilmember Rousseau said we were here until midnight for a recent meeting. We need to be mindful of how late we stay. One person's schedule challenges shouldn't mean we should let that impede city business. Councilmember Weber said he has kids and obligations, as well. Councilmember Rousseau said remote participation is an option. Mayor Grant said we shouldn't make this decision in Councilmember Holden's absence. Councilmember Weber said we aren't deciding today. She will have the opportunity to vote on a proposed ordinance change. I\ nr Mayor Grant adjourned the City Council Work Session at 9:02 p.m. Jen Estling Deputy Clerk David Grant Mayor 4resent , A b pN t h J Approved: June 8, 2026 CITY OF ARDEN HILLS, MINNESOTA REGULAR CITY COUNCIL MEETING MAY 11, 2026 7:00 P.M. - ARDEN HILLS CITY COUNCIL CHAMBERS CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, Mayor David Grant called to order the regular City Council meeting at 7:00 p.m. Present: Mayor David Grant, Councilmembers Tena Monson, Emily Rousseau and Kurt Weber Absent: Councilmember Brenda Holden (excused) Also present: City Administrator Jessica Jagoe; Public Works Director/City Engineer David Swearingen; Finance Director Joua Yang; Community Development Director Jacob Reilly; and Assistant to the City Administrator/City Clerk Julie Hanson PLEDGE OF ALLEGIANCE 1. APPROVAL OF AGENDA MOTION: Councilmember Monson moved and Councilmember Weber seconded a motion to approve the meeting agenda as amended. The motion carried (4-0). 2. TCAAP/RICE CREEK COMMONS UPDATE City Administrator Jagoe stated the Joint Development Authority met in a special meeting on April 29th. On the agenda, the JDA reviewed a draft 2027 budget and no formal action was taken. Between now and September 1 st, the JDA staff will prepare a final draft budget that will be presented to the JDA for preliminary approval which is then submitted to the City and County. The JDA will adopt their 2027 budget by November 151h. At this meeting, JDA staff also provided a report from Goff Public on communications that have occurred over this past month and the JDA reviewed their 2026 Road Map. Next, the JDA Advisory Committee met on May 71h. For this discussion, JDA staff provided a verbal update on the analysis that is being done for the hybrid approach that the JDA is ARDEN HILLS CITY COUNCIL — MAY 11, 2026 2 considering for future development of the California parcel. JDA staff has been refining strategies for ways to approach a future solicitation of potentially 4-5 development areas and how that might be facilitated for timing of release simultaneously or in short succession of each other. Before the next JDA Advisory meeting, staff will continue discussions on expectations that need to be considered for this approach, how a potential real estate development consultant can support this approach, along with a recommended RFP approach. The full JDA will review and discuss the hybrid developer approach at their next regularly scheduled meeting to be held on Monday, June I" at 5:30 PM. 3. PUBLIC INQUIRIES/INFORMATIONAL Lynn Diaz, 1143 Ingerson Road, expressed concern regarding the lack of transparency for the members that were appointed to the economic development authority in Arden Hills. She had questions she would like answered by the mayor and asked if he had spoken with everyone on the EDC that there were openings on the EDA and inquired if these members were informed of a deadline. She questioned if interviews were held with each member that applied and asked if other members of the Council were invited to attend these interviews. She inquired if notes or videos were taken from the interviews. She asked why the appointments were placed on the Consent Calendar versus having this as a Council Business item. She stated she was concerned that the EDA members could vote on levies and may not be a resident of Arden Hills. She indicated she was also concerned with the fact the EDA members had six year terms. She asked if the term length could be reduced to four years. She supported the City Council adopting a practice to ensure the interview process was better handled in the future. 4. RESPONSE TO PUBLIC INQUIRIES None. 5. PUBLIC PRESENTATIONS A. Northeast Youth and Family Services (NFYS) Angela Lewis-Dmello, President and CEO of NYFS, provided the Council with a presentation from Northeast Youth and Family Services. She reported NYFS would be celebrating 50 years of serving the community in 2026. She explained NYFS's mission was to transform lives by ensuring access to care that nurtures healing, cultivates community and inspires hope. She stated NYFS's vision was to envision a world where thriving individuals and families are the building blocks of safe unified communities established through a network of empowered and collaborative partnerships. She spoke to the history of NYFS noting 10 communities came together and identified significant unmet needs in the region for youth. She explained NYFS now had partnerships with 16 municipalities, five law enforcement agencies and three school districts. She discussed NYFS's transformational model of care and spoke to how she was invested in created relationships. She commented on the mental health programs that were provided which were clinic based and school based. The community services programs provided by NYFS were youth pathways, community connections and community advocacy. She spoke to the benefits of the restoring power program and commented on the new services being provided by NYFS through criminal legal advocacy work and early childhood mental health services. She reviewed ARDEN HILLS CITY COUNCIL — MAY 11, 2026 3 the stats and noted the number of individuals that were served in 2025. She discussed how NYFS was impacted by COVID and has since recovered. She described how NYFS would continue to innovate and diversify going into the future. She commented further on the exciting services being pursued and thanked the City of Arden Hills for being a great partner with NYFS. Councilmember Rousseau thanked Ms. Lewis-Dmello for her presentation and for working to make NYFS resilient. She explained she appreciated attending the NYFS luncheon and appreciated hearing from Ramsey County Attorney John Choi. She asked when the 50tn Anniversary celebration would be held. Ms. Lewis-Dmello reported this event would be held in November. Councilmember Weber thanked Ms. Lewis-Dmello for her presentation. He asked if NYFS was in a budget deficit at this time. Ms. Lewis-Dmello explained she had a three month operating reserve and funding in an endowment. She reported NYFS was fully funded for 2026 but was not currently fully funded for 2027. She spoke further to how State and federal funding would be cut in the coming year. Councilmember Weber stated he appreciated learning more about how NYFS addressed domestic violence incidents in the community. Councilmember Monson thanked Ms. Lewis-Dmello for her presentation and stated she had a wonderful time attending the NYFS luncheon, noting this event was very uplifting. She appreciated how NYFS was working to address the anxious generation. She stated she was disappointed to see the State and federal government would be cutting funding in the coming year. Mayor Grant thanked Ms. Lewis-Dmello for all of her efforts on behalf of the community and for creating great partnerships throughout the region. He asked if the number of clients that "decline to specify" their race was on the rise. Ms. Lewis-Dmello reported this was the case. Mayor Grant stated he appreciated how NYFS had become more resilient over the years when it comes to funding sources. He asked if NYFS could begin providing a yearly one -pager on the services provided to Arden Hills residents. Ms. Lewis-Dmello indicated this information was sent to the City each year with the contract information. B. Proclamation Recognizing May 17-23, 2026 as National Public Works Week Mayor Grant read a proclamation in full for the record recognizing May 17 through May 23, 2026 as National Public Works Week in the City of Arden Hills. C. Proclamation Recognizing May 11-16, 2026 as Police Week ARDEN HILLS CITY COUNCIL — MAY 11, 2026 4 Mayor Grant read a proclamation in full for the record recognizing May 11 through May 16, 2026 as Police Week in the City of Arden Hills. 6. STAFF COMMENTS A. Transportation Update Public Works Director Swearingen reported Ramsey County's ADA work has been completed on County Road E and New Brighton Road. He stated the pavement rehabilitation work would begin shortly. Public Works Director Swearingen stated MNDOT has reduced traffic to single lanes on Snelling Avenue from Highway 36 to Gray Fox Road. He encouraged residents to visit the MNDOT website for updates on this project. Public Works Director Swearingen explained the City's 2026 PMP project, Xcel Energy was already onsite. He reported the watermain improvements were beginning and the contractor has started hard court work on the Arden Manor Park and ADA improvements at Arden Oaks Park. Public Works Director Swearingen indicated the informational open house for the 2026 PMP would be held on Wednesday, May 13 at City Hall from 5:00 p.m. to 6:30 p.m. Public Works Director Swearingen discussed a separate Xcel Energy gas project that would impact Highway 96 traffic. Councilmember Rousseau stated she was disappointed to see the trees on Highway 96 removed by Xcel Energy and she hoped these trees would be replanted. Councilmember Weber inquired if the City had a caliper inch replacement program for trees. Public Works Director Swearingen explained he could check with the Community Development Director to see if development piece of City Code applies to this project. He anticipated a 1:1 replacement for the trees. Mayor Grant stated it was disappointing to lose these trees. He was hopeful Xcel would replace these trees with a large scale vendor of quality trees. Public Works Director Swearingen reported the tree replacement would be coordinated with City staff. Mayor Grant reported the City may want to consider using the tree replacement fund in order to plant more trees along Highway 96. Councilmember Weber supported this recommendation. Mayor Grant requested staff report back to the Council at a future meeting on the fund balance of the tree replacement fund. 7. APPROVAL OF MINUTES ARDEN HILLS CITY COUNCIL — MAY 11, 2026 5 A. April 13, 2026, City Council Work Session B. April 13, 2026, Regular City Council C. April 27, 2026, City Council Work Session D. April 27, 2026, Regular City Council MOTION: Councilmember Monson moved and Councilmember Rousseau seconded a motion to approve the April 13, 2026, City Council Work Session minutes as amended, the April 13, 2026, Regular City Council meeting minutes as amended, the April 27, 2026, City Council Work Session minutes as presented, and the April 27, 2026, Regular City Council meeting minutes as amended. The motion carried (4-0). 8. CONSENT CALENDAR A. Motion to Approve Consent Agenda Item - Claims and Payroll B. Motion to Approve First Quarter Financials C. Motion to Authorize City Staff to Begin Summer Work Hours Beginning Tuesday, May 26, 2026, and Concluding on Friday, September 4, 2026 D. Motion to Approve System Interconnection Agreement for Fire Protection Services between Arden Hills and Mounds View E. Motion to Approve Settlement Memorandum for Parcel 10 — Old Highway 10 Trail Improvements Project F. Motion to Approve Resolution 2026-026 Exercising the City's Authority to Opt -In and Support the Ramsey County Economic Development Agenda ("BDA") MOTION: Councilmember Monson moved and Councilmember Weber seconded a motion to approve the Consent Calendar as presented and to authorize execution of all necessary documents contained therein. The motion carried (4-0). 9. PULLED CONSENT ITEMS None. 10. PUBLIC HEARINGS None. 11. NEW BUSINESS None. 12. UNFINISHED BUSINESS None. 13. COUNCIL COMMENTS ARDEN HILLS CITY COUNCIL — MAY 11, 2026 6 Councilmember Rousseau requested the Council appoint her as the Ramsey County Local Government representative with Councilmember Weber as the alternate. Mayor Grant stated all five members of the Council could attend these meetings. Councilmember Weber explained after attending a Ramsey County Local Government meeting recently, it appears this group would like to have a member of the City Council designated as the representative. He stated he supported the idea of making an appointment. Councilmember Rousseau indicated Arden Hills was the only City that does not have one specific designee for this organization. Mayor Grant suggested a member of the Council be appointed as the designee with the remainder of the Council serving as the alternates. Councilmember Weber commented he was open to this but he anticipated it would be easier to have one alternate for the designee to reach out to if they were not able to attend a meeting. Councilmember Rousseau reported a resident spoke earlier about the EDA member appointments. She understood the Mayor had notes from ranking the EDA appointees and she asked that his information be shared with the Council. Mayor Grant indicated he turned this information over to staff and requested it be shared with the full Council. Councilmember Rousseau commented she would like this information to be passed along to the entire Council. Councilmember Rousseau requested a plaque be installed for the memorial tree. Public Works Director Swearingen stated the City does not have a standard for plaques and explained he would work with the parks and recreation director on this matter. Councilmember Weber stated he would like to see the City doing more to support NYFS. He proposed a 20% increase to their current funding. Councilmember Monson requested proclamations always be read under Public Presentations. Councilmember Weber and Councilmember Rousseau were in agreement. Councilmember Monson stated she supported the Council addressing the Ramsey County Local Government appointment at a future meeting, along with NYFS funding at a future worksession meeting. She questioned how these topics should be brought up. Mayor Grant preferred Council comments being comments versus having to respond to new ideas. Councilmember Monson indicated she was just looking for a way for new topics to be brought forward to ensure they are not forgotten from one meeting to the next. ARDEN HILLS CITY COUNCIL — MAY 11, 2026 7 Councilmember Monson addressed the comments that were made by Lynn Diaz and requested the data request covers all of Ms. Diaz's questions and that the response be provided on the Response to Public Comments for transparency purposes. Mayor Grant suggested staff listen to the meeting tape in order to respond to the questions that were raised by Ms. Diaz. He noted the questions were directed to him and stated his answers would be his answers and he would not be speaking on behalf of the entire Council. Mayor Grant stated he attended the Nine Cities mayor and city managers meeting. He was pleased to report the fire department project remains on schedule and on budget. He learned Vadnais Heights would be building a new fire station and the cost came in significantly higher than the Lake Johanna Fire Station. He commented on how fiber networks and franchise fees was another topic discussion at this meeting. Mayor Grant reported the Mounds View Finance Director Gayle Bauman, who formerly served as the Arden Hills Finance Director, would be retiring in June. He wished Ms. Bauman all the best in her retirement. Mayor Grant spoke to a recent article regarding the Primer Tracer property and noted this parcel of property was not part of Rice Creek Commons. He indicated a million square feet of industrial space was being proposed for this property. City Administrator Jagoe summarized the items that would be coming forward at future work sessions and questioned if the NYFS funding should be considered for this year or included in the 2027 budget. Councilmember Weber stated he would like the Council to consider a funding increase for NYFS for 2027. ADJOURN MOTION: Mayor Grant moved and Councilmember Rousseau seconded a motion to adjourn. The motion carried (4-0). Mayor Grant adjourned the Regular City Council Meeting at 8:28 p.m. Julie Hanson City Clerk David Grant Mayor Approved: June 8, 2026 CITY OF ARDEN HILLS, MINNESOTA CITY COUNCIL WORK SESSION MAY 26, 2026 5:30 P.M. - ARDEN HILLS CITY COUNCIL CHAMBERS CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, Mayor Grant called to order the City Council Work Session at 5:30 p.m. Present: Mayor David Grant; Councilmembers Tena Monson, Emily Rousseau, Kurt Weber and Brenda Holden Absent: None Also present: City Administrator Jessica Jagoe, Public Works Director/City Engineer David Swearingen, Finance Director Joua Yang, Assistant to the City Administrator/City Clerk Julie Hanson and Community Development Director Jake Reilly Councilmember Rousseau said during the discussion of Work Session Start Time, she would like to put a hold on a date on the calendar for a special work session in the fall. We can cancel if we don't need it. 1. PUBLIC INQUIRIES/INFORMATIONAL None. 2. RESPONSE TO PUBLIC INQUIRIES None. 3. AGENDA ITEMS A. Work Session Start Time City Administrator Jagoe said this item is carried over from the May 11 work session. Staff asked if there is interest in changing the work session start times to 5:00 pm, over the summer months, as ARDEN HILLS CITY COUNCIL WORK SESSION — MAY 26, 2026 2 we've done in the past. The agendas would be special agendas with a modified start time. A special work session agenda cannot be amended. We would put as many items as we can on the agenda to ensure we are using the time. She asked Council to discuss and provide further direction. Councilmember Holden asked if there is a way to change it so the agenda can be changed. City Administrator Jagoe said no. If Council does a special work session start time of 5:00, then the agenda for those meetings is set and cannot be amended. Councilmember Holden understands that. She said what if we want to change Monday meetings to Tuesday meetings. We can't change that in the middle of the year? City Administrator Jagoe said we can. It can be temporary, by doing special meetings or we can change the ordinance. If we change the ordinance that becomes the regular meeting dates and times. Councilmember Weber assumed the whole schedule would shift by a half hour, rather than just the work session. He would prefer to shift the start times of both meetings on a permanent basis. He doesn't know if moving just the work session up a half an hour does that much for us. It is good for Staff, if we get out at a decent time. It might allow us to get a little more discussion in but we have been working through a lot of items in our backlog recently. Councilmember Monson said last summer the extra half an hour was helpful, especially in budget season. She would hesitate to move the council meeting up because it takes away the advantage of that extra half hour during work session discussions. Also, the public has always known the council meetings start at 7:00 pm. She is less inclined to change that start time. Mayor Grant agrees that residents know council meetings are at 7:00. He thinks it's best to keep the regular meeting start time at 7:00. Councilmember Rousseau said she is interested in permanently changing the start time to 5:00. The nights where Council is here until 10:00 or 11:00 are not ideal. She thinks changing the work session start time will help find some balance. She supports the City Council meetings starting at 7:00. Councilmember Holden said she can't make it at 5:00. She was elected and people want to hear what she has to say. People in the community pulled together to help her and her family when they needed it. She thinks changing this deliberately so she can't attend meetings is breaking the sense of community for her and a lot of other people. If it's so important, why don't we start at 4:30 in the summer. We could have three meetings a month. City Administrator Jagoe said we have checked through several items on the agenda planning list over the past couple of meetings. We could move forward with the temporary work session start time of 5:00 pm as we have done the last two years. We've done these special work sessions through August in the past. That would give us five meetings to do the earlier start time. We can work through that agenda planning list, recognizing that we have budgets coming up. We can revisit it in August and see how many of the items on the list we have gotten through. Mayor Grant said we have heard from one Councilmember that she is not able to make a 5:00 start time. This is a five member elected council and everyone should be present and should be heard. ARDEN HILLS CITY COUNCIL WORK SESSION — MAY 26, 2026 3 We can talk about having another work session discussion, that's fine. Switching the time, knowing a councilmember can't attend is an issue for him. Councilmember Rousseau said if we have a councilmember who can't stay until 11:00 or midnight, it's appropriate. If we have a work session meeting that starts at 5:00 is not appropriate. Mayor Grant said we're talking about start times. Councilmember Rousseau said at the other end of it when you have other councilmembers who have other things they need to do in the evenings or have things early the next morning, it's not acceptable. Mayor Grant said he would prefer to have a five person council. Things will come up from time to time but it's not a consistent thing. We shouldn't plan to exclude someone. Councilmember Weber said this isn't planning to exclude someone. It's changing the start time. He said Mayor Grant said we are talking about start time. He disagrees. This is consideration for a particular councilmember. There have been times when we have been here until 11:00 pm or midnight. Councilmembers have expressed reasons for needing to be able to leave by a certain time in the eveningWhen we ran for council there was an understanding that it's the council that decides, not one person. He still supports changing the ordinance to a 5:00 permanent start time. Mayor Grant said to do so, is to not include the full council. His comments were mischaracterized. He said a recent council meeting went really late because it was a really big topic.. Our work sessions have previously been slated for 5:30 in city code. He believes the public would not want us to exclude a member of the council Councilmember Weber indicated he has personal reasons for possibly needing to leave early and so having meetings end by a certain time would be ideal, but all Councilmembers may not support that. It goes both ways. Councilmember Holden said we used to have a drop dead stop time at night that we would end by and people respected that. She doesn't see how starting at 5:00 will help with the agenda. She comment that any issues that she isn't available to talk about, she will pull off consent and she will ask her questions at that time. Councilmember Monson would like to start at 5:00. She agrees with Councilmember Weber's comments. Her hope is that we are giving enough time that people can adjust their schedules. She is fine having a vote if we're here at 10:00 pm. She would also like to have a built in recess time so people aren't self -excusing to take needed breaks. City Administrator Jagoe said we used to have regular meetings on the second and fourth Mondays of the month. The work sessions were on the third Monday of the month and those were limited to three hours. When it moved to before the council meeting we put one and a half hours before each meeting so it was still three hours. ARDEN HILLS CITY COUNCIL WORK SESSION — MAY 26, 2026 4 Councilmember Holden said it worked good because we weren't exhausted. Three meetings a month really worked well. Councilmember Monson has a different opinion. She prefers two meeting nights, over three. The hour and a half split is fine, in theory, but we come back after the council meetings regularly. Mayor Grant said we don't make formal decisions here. He has heard three councilmembers say 5:00 and two councilmembers say 5:30. City Administrator Jagoe confirmed that is what she heard. Staff is seeking direction on if this is a temporary change to see what items we get to through August. There was discussion of a hold date for a special work session in the fall. We can come back to this topic before establishing it permanently. It could come back in August. Mayor Grant said the City Administrator tossed out the possibility of having an extra work session in the middle of the month. That would make up for the half hour. City Administrator Jagoe clarified she was asking about a possible special meeting in the fall, as was requested earlier in the meeting. Mayor Grant said that special meeting would more than make up for the 30-minutes. Councilmember Weber asked if the special meeting in the fall would be to determine if council wants to make that permanent. Councilmember Rousseau said no. She suggested it to ensure that we stay on track with our road map or if there are any budget issues. Councilmember Weber thinks revisiting this in the fall is a bad idea. If council goes that route, he would prefer that anyone who needs it has plenty of notice. Mayor Grant said it isn't an issue of it being known. It's an issue of not being able to attend. Councilmember Weber gets that. Right now we're being told someone can't do it and he wouldn't want to have the same discussion if the fall. He'd rather establish it now and be done with it. Councilmember Monson agreed. Councilmember Rousseau has shared her thoughts. They haven't changed. Mayor Grant disagrees with that. He's on the other side of the fence. He understands that continuing to start at 5:30 is in the minority. If we move to 5:00 they are all special meetings, all summer. City Administrator Jagoe said if we do it temporarily, that's correct. If we change the ordinance, they would be regular work sessions. Mayor Grant asked if council is okay with changing it to 5:00 through the summer. ARDEN HILLS CITY COUNCIL WORK SESSION — MAY 26, 2026 Councilmember Rousseau would not like to have this conversation again. She supports making it permanent now. Mayor Grant said that would be an ordinance change. He said Staff has direction to get an ordinance change ready. He was hoping for a more inclusive council. We will be one member short for 30-minutes and holding a date in the fall. City Administrator Jagoe said the earliest meeting Staff could bring that ordinance amendment to is the June 8. She asked if council would like that June 8 to be a special work session that starts at 5:00 or should it be a regularwork session, starting at 5:30, knowing the ordinance review would be effective for the next meeting in June. Councilmember Rousseau understands Councilmember Holden has someone to help at the end of June. She's fine waiting until the second meeting in June. Councilmember Holden said she has someone available at 5:00 as soon as school lets out. Mayor Grant said he is hearing people say either way. Councilmember Weber asked Councilmember Holden if 5:00 is doable for her on June 8. Councilmember Holden confirmed she is available at 5:00. Mayor Grant said the June 8 meeting will be a special work session starting at 5:00 pm. He asked if anyone had any suggestions for the placeholder date in the fall. Councilmember Rousseau would be interested picking a Friday afternoon after Labor Day. We have a list of items that have been road mapped on top of the really in depth conversations around budgeting. Councilmember Holden asked if it would be purely budget related. She asked when the preliminary budget levy has to be introduced. Finance Director Yang said it has to be adopted by the end of September. Councilmember Holden asked if we will have enough information. Will we have a surplus? Will we have enough information? She suggested it may be better to hold it in October so we will know where we are after the preliminary data. Councilmember Monson said she thinks we needed a special work session before the preliminary. She was looking at September 21 which is the third Monday. That would be one week before it's due. That may be a good spot for final discussion on the preliminary levy. Councilmember Holden can be at the meeting on the 21" but if it starts at 5:00 someone will have to repeat the information she missed. Mayor Grant said the preliminary levy is due on September 28. It sounds like September 21 is the date. Not all councilmembers will be present for the full work session. Councilmember Holden said this would be a special meeting. We can hold it at a special time. ARDEN HILLS CITY COUNCIL WORK SESSION — MAY 26, 2026 6 Mayor Grant asked if council is okay having that meeting at 5:30 since we don't have a council meeting after. Councilmember Monson asked if we need to decide on the start time? Can we just block the date? Then if we decide the meeting is needed, we can discuss timing. Councilmember Holden would like to decide now so we don't have to discuss it again. Council agreed to a special work session at 5:30 on September 21. City Administrator Jagoe said there was previous discussion of holding June 4th at 8:00 am for a special meeting. There aren't any topics specified. No councilmember had that date on their calendar. Staff will take that off the schedule. B. Sign Code Revisions Community Development Director Reilly said the consultant team has been working on zoning code updates. The primary focus of today's conversation is updates to Chapter 12 - Sign Code. The Economic Development Commission (EDC) recommended sending it to Council for adoption. The packet includes the current and the proposed new language. Community Development Director Reilly noted some changes that were recommended by the EDC. They proposed to reduce the number of sign districts that have different rules applied to them. They would like to associate allowed sign area with the building size, establishing a consistent minimum size and a maximum size relative to building size in order to create more equitable outcomes for business owners. Community Development Director Reilly said the draft table, provided in the packet, retains the same information for residential districts. The draft code revisions change the total permitted sign area for wall signs to be a percentage of the wall area for non-residential uses in a residential district. It identifies the total permitted sign area for freestanding signs and indicates a minimum sign area for signs so businesses with smaller buildings and/or within a multi -tenant building can have the same relative amount of sign as anyone else. Community Development Director Reilly said the sign districts previously known as Districts 4, 5 and 6 are combined with the B 1 district and commercial, institutional or industrial uses fronting on the main roadways indicated in other sign districts. No changes are recommended to sign districts for I -FLEX and Gateway Business zoning districts. The Neighborhood Business district and sign District 9 stay the same. The calculations for a percentage of wall area are aligned with the typical uses. Retail uses tend to have smaller buildings. The maximum amount of sign area is smaller than those associated with industrial buildings which tend to be larger. Community Development Director Reilly said graphics have been added to the code. We didn't have that before. He shared examples of ways signs can be attached to buildings. He asked if Council is agreeable to the revisions proposed. ARDEN HILLS CITY COUNCIL WORK SESSION — MAY 26, 2026 7 Mayor Grant noted language in the packet about lighted signs and measuring impact on neighboring properties. He is wondering if it permitted LEDs for signage. Community Development Director Reilly said the measurement is about the light emitted from the face of the sign, regardless of what the lighting instrument is. There would still be provisions about light spilling over onto other zoning districts. Measuring at the face of the sign is more accurate and aligned with current technology. Most signs today are made with LED lights. Mayor Grant said there is a gas station in New Brighton who have lined their canopies with LED lights that are visible for miles. That's intentional. Are we permitting that kind of thing? Community Development Director Reilly said that is not our intent. He will make sure the code aligns. Mayor Grant said there are drive-thru menu boards that are dynamic. Is that accounted for in this new document? Community Development Director Reilly said the drive-thru menu signs have a restriction on how many times they can change. It states it can't change more than three times. He noted there are brightness standards for all illuminated signs. Councilmember Weber said there have been a significant number of sign variance requests heard at the planning commission. He asked if most of those common issues have been addressed and if the City can expect to see fewer requests for sign variances. Community Development Director Reilly confirmed. He noted Staff created a list of variances applied for over the past 20 years. That information was shared with the planning consultants to ensure there will be fewer variance requests. Councilmember Holden asked if portable is defined in the materials. Community Development Director Reilly confirmed. Councilmember Holden said she is concerned about the increase in the size allowed in the neighborhood businesses. We don't have a lot, but most of them are in residential areas. She asked if anyone completed an evaluation of the neighborhood business locations. She asked if the effect on the area has been considered. Community Development Director Reilly will do some research and provide more information. Councilmember Holden said in the past people have brought in dynamic signs. We don't have the equipment to measure the light. How will we enforce that? Community Development Director Reilly said the only solution is for an entity to own a light meter. They have come down in price. It can be considered in the capital improvement budgeting process. Councilmember Holden noted that there are running signs. She asked if those are addressed under dynamic signage. ARDEN HILLS CITY COUNCIL WORK SESSION — MAY 26, 2026 8 Staff confirmed. Councilmember Holden said there is a running sign at a local business that displays multiple messages a day. Are we now saying he can only do three? Community Development Director Reilly said the new code language identifies how much of the sign can be dynamic. Flashing and scrolling are prohibited. If it changes, it must stay still for at least 10 seconds. Councilmember Holden said the business she is talking about has a scrolling sign. Are we going to tell him he can't do that anymore? Community Development Director Reilly said there is a provision for existing signage that, if this language is adopted, it will become a non -conforming sign. City Administrator Jagoe said she thinks they were granted permission under the PUD approval. Councilmember Holden asked if they change that sign, is it still non -conforming. Community Development Director Reilly said if they remove the sign, any sign replacement must be conforming. Councilmember Rousseau said we mention that Mounds View High School, Bethel University and Northwestern College banners signs. She wondered if there is a need to include Valentine Hills. Community Development Director Reilly had intended to ask if Mounds View High School should be changed to Mounds View Public Schools. Councilmember Rousseau asked if the freestanding temporary signs includes campaign signs. She asked what can be done to prevent having Public Works Staff running around to pick up signs. Community Development Director Reilly said the proposed language has changed to be more clear and less likely to impactclear zones and the right of way. He said this aligns with the neighboring communities. Councilmember Rousseau asked if a sign was off by about three inches, does that mean the Public Works Staff will have to go pick them up. Public Works Director/City Engineer Swearingen said if they are in violation of the ordinance they will be removed. Community Development Director Reilly said this outlines they are not allowed in a right of way so they must be on someone's property and that property owner must give permission. City Administrator Jagoe said current language says they can be five feet from the edge of the pavement and they can be within the right of way. This is moving it to six feet from the edge of the pavement. Essentially, we're moving it back one foot. ARDEN HILLS CITY COUNCIL WORK SESSION — MAY 26, 2026 9 Councilmember Rousseau does not want to spend staff time measuring to determine if a sign is 5 feet, 10 inches from the pavement or 6 feet. City Administrator said Staff discussed having a provision that addresses placement of election signs. Looking at adjacent cities, it's standard to have some distance, as measured from the road. She asked if Council has direction on the code enforcement process as it pertains to campaign signs. Community Development Director Reilly said we don't have sidewalks in much of the city. He said the language outlines that temporary signs must be placed solely on private property and must maintain a minimum two foot setback from public sidewalks. There is also language stating that additional signs during election periods must be six feet from the edge of the roadway. If there is no sidewalk or boulevard a resident may not be sure where their property ends and where the right of way begins. This draft would not allow any temporary sign to be placed in the right of way. Councilmember Rousseau asked if Public Works can track how many calls we get. City Administrator Jagoe said Staff can track that. Public Works does typically pick up temporary signs along roadways. However, elections signs were tasked to the Code Enforcement Officer because there was an outreach effort to residents to educate where signs are allowed to be placed. Code Enforcement can track those calls this year. Councilmember Monson agrees the neighborhood business signs should be reviewed for size and lighting to ensure there is no impact on neighbors. She thinks a scrolling sign can scroll and hold for 10 seconds at the end of a message before beginning another message. We can't avoid LEDs. We just have to write this in a way that would apply to any technology. We don't want to restrict businesses too much. She thinks for the temporary and campaign sign section we should just have a policy that says it will be enforced if it's an egregious violation or a safety issue. She isn't sure if that can be written in code or if it would be a policy. She agrees we shouldn't be spending significant Staff time measuring if a sign is placed a few inches too close. She spoke to a business along 694 who said they can't get a sign high enough to be visible above the trees. She would like to look into an exception for allowing taller signs along 694. She doesn't think we need to be that specific regarding Mounds View public schools. We could just say "public schools" to include any school. Mayor Grant said there are two rather large signs along 694. They're more like billboards. He asked if those can now be dynamic. Community Development Director Reilly said the term billboard is not commonly used anymore. Where the term billboard was used in the current code it is now an "outdoor advertising sign."In the description of outdoor advertising signs it states that they are commonly called billboards. Mayor Grant said it's an outdoor advertising sign, but so is a sign on a truck or mounted on a trailer. Community Development Director Reilly said he hears that, however that is not how the code defines outdoor advertising. Outdoor advertising sign has always been in our code stating outdoor advertising signs are commonly called billboards. However, we don't have a provision to prevent the conversion to a dynamic sign. He will work with the City Attorney to add that language if possible. ARDEN HILLS CITY COUNCIL WORK SESSION — MAY 26, 2026 10 Councilmember Holden said she has heard the same thing from businesses on 35W and County Road E2. They would like a tall sign. If we're looking at sign heights along 694, it will have to be blanket for everyone. As for the scrolling sign, it can scroll and stop but can't have a continuously changing message. Community Development Director Reilly said the limit on the number of times something can change a day is only for menu boards, not for signs with dynamic displays. Councilmember Holden said election signs are really difficult for her to figure out. If we say "edge of the roadway" does that include the curb? Or is it the asphalt? She doesn't think now is a good time to be changing the rules because it's an election year. It may impact some people who are on the Council. What if the sign is an H stand. Is the measurement taken six feet from the edge of sign or is it six feet from the stand? Those are the kinds of things people start nit-picking about. She thinks saying "the closest edge of the sign needs to be at least six feet from the asphalt" would make it clear. She said we want to encompass technology even beyond LED into the future. Councilmember Weber said the former code on election signs was five feet, now it's six feet. He said the questions raised about pavement vs. sidewalk highlights how miniscule these details get. That's what we need to stop. He said a curb is included in a roadway cross section. The back of the curb is the edge of the road. The right of way is for transportation. If you aren't obstructing a clear zone, a trail or a roadway, there has been discussion at the supreme court level that the right of way is the homeowner's property. It's just an easement through the property for transportation. If you aren't obstructing transportation, it's yours to use. He doesn't necessarily agree with changing it to six feet. He doesn't want to be sending our code enforcement officer out to look at signs all over the city. If it's five feet, drive past it. If it's right next to the roadway or obstructing a trail then we'll do something about it. He would prefer the city Staff avoid the pettiness that occurred in the last election. He is fine with the number of sign districts proposed. Councilmember Monson asked if we are asking Staff to write a policy for Council to approve in regards to election sign enforcement or are we writing something into the ordinance? She would prefer a policy. Councilmember Holden said if five feet is good enough, it should say five feet in the code. If code says six feet, we can't say five feet is good enough. Then five feet turns into four feet. Mayor Grant said the place for election sign code stuff is in the sign code ordinance. Councilmember Monson clarified her question was about how we want Staff to enforce it. Do we want to have a policy or do we want to write enforcement language into the code? She is advocating not to change what is already written but how we want Staff to enforce it via a policy. Councilmember Holden said we should put it on the work session calendar to discuss. Community Development Director Reilly thinks the code language should be clear and we should have a policy for how to enforce those infractions. City Administrator Jagoe said the existing sets the districts by area. We are just doing the zoning districts that are applicable to Chapter 13, not to include the TCAAP area without frontage on Highway 96. We can eliminate that line because the TRC has it's own provisions for signage. ARDEN HILLS CITY COUNCIL WORK SESSION —MAY 26, 2026 11 Council recessed the Work Session at 6: 50 pm. Council reconvened the Work Session at 8:45 pm. C. Zoning Code Updates Community Development Director Reilly said the memo for this item identifies where we are in the process. The work session on June 8 would have a red -line version of a draft Chapter 11 in its entirety. This will be heard by the Planning Commission and Council in early fall with the goal to be complete and adopted in October. Community Development Director Reilly said the primary changes to Chapter II is making things more clear and aligned with current professional practices and standards of surrounding communities, along with some recent legal interpretations by state and federal courts. Councilmember Holden said surrounding communities are larger. What is Staff referring to when he says surrounding communities? Community Development Director Reilly said that includes the nine cities that we regularly survey, along with other similar cities in Ramsey County, outside of those nine. He said Staff ensured definitions in the subdivision chapter align with the Public Works Street Design Manual. This was included in a proposal from HKGi ensuring the application process, updating language associated with variances to match state statutes. Those variance changes were amended in other chapters but was missed in this subdivision chapter. Community Development Director Reilly said the consultant can't finalize the draft until he gets input on a few questions. The code identifies developments established before 2008. It states in certain developed sites with approved plats and development agreements placed prior to 2008 go through the Planned Unit Development (PUD) process for future changes to the site. The consultant has recommended that any changes to development established before 2008 use a site plan review process. There are some options outlined in the agenda. We could list all of the different ways to amend a development approval so Staff has a choice. The consultant recommends allowing a single way. Councilmember Monson said the consultant is recommending we use one tool for anything that was developed before 2008. So anything developed in 2009 and later will use a different tool? Community Development Director Reilly confirmed. He said from that point forward everyone used a PUD. So they would use a PUD amendment process. Councilmember Monson said basically it is for consistency. Community Development Director Reilly confirmed, for larger developments. If they were developed without a PUD, code directs them that these are their choices. Councilmember Monson said the recommendation of a site plan review is because the types changes we will see are flexing within their footprint. ARDEN HILLS CITY COUNCIL WORK SESSION — MAY 26, 2026 12 Community Development Director Reilly confirmed that is the reason for the consultant's recommendation. Councilmember Monson asked if the question is should we use a site plan vs. a PUD. Community Development Director Reilly confirmed. Do we want everything in that time period to follow the same path forward? Right now B2 and B3 follow a different path than B4. Councilmember Monson wants them all to be the same. She thinks the site plan seems appropriate as long as CUPs are still available. Councilmember Weber said if the sound wall at Boston Scientific had gone through a site plan review, rather than a PUD, where would we be? Would it have been a more streamlined process that wouldn't have had to go through Planning Commission? Community Development Director Reilly said no. In Arden Hills all site plan reviews would still go in front of the Planning Commission. Some things require public hearings and some do not. We allow public comment, regardless. Councilmember Weber asked if they would have been able to request a site plan review for a wall construction on the property line. There may be niche cases where something gets streamlined, it's not wanted but the city won't have much say in the decision. That's not always bad, but it could be in certain situations. Community Development Director Reilly said with no changes to the site plan review policy, the same result could have happened if it simply went through site plan review. There is a provision in the code that allows the zoning administrator to decide whether something needs to go before the Planning Commission. Councilmember Weber asked would Staff have been able to make that unilateral decision or would it have been forced to go to the Planning Commission. Community Development Director Reilly said he would have chosen to take that to the Planning Commission. Councilmember Weber said that ended up being a bigger deal than he anticipated it being. He just wanted to ensure those types of proposals are getting the daylight that they need. Councilmember Holden said Director Reilly may not always be here and the next person may have a totally different view. We have to balance that. She said in a PUD we are able to get something from developers. She said we lose a lot with a site plan review. How does that balance out so the City can get something that benefits the City or is advantageous to the residents? Community Development Director Reilly said the distinction is these are properties and parcels that have already been developed and they are coming to us to request changing the use of the building from one permitted use to another. That may affect the number of parking spaces required or signs. It's limited to existing developed areas. ARDEN HILLS CITY COUNCIL WORK SESSION — MAY 26, 2026 13 Councilmember Holden said Arden Plaza was developed under a PUD. If they want to change something, with a site plan review we are losing the option to have them build an additional sidewalk to somewhere else. Community Development Director Reilly said if something is operating under an existing PUD, that will be a PUD amendment process. This is only for sites developed without a PUD. Many locations have already been turned into PUDs. There are still a handful that aren't under a PUD. The consultants believe having one path for those properties to change may be less complicated for Staff and property owners. City Administrator Jagoe said we would still look to our land use table to determine if it's a permitted use. We may be able to do a site plan review to permit it at that location if it's a permitted use. If it is a change in use that triggers a Conditional Use Permit (CUP) they still have to go through that process. If they are doing a building addition where everything complies with code, that would be a site plan review. If they can't meet certain requirements like setbacks or building materials and are seeking something that doesn't comply with code, it would still trigger a PUD. Community Development Director Reilly said changes are consistent with the way the area was zoned, it could continue to go through site plan review. Conditions can be added to site plan reviews. Councilmember Holden said the example she is thinking about is Frattalone's. That isn't a PUD so it would be a site plan review. One of the things she wants out of that, is a sidewalk. If they're doing limited changes they're going through a site plan review. If it had to come back as a PUD we could get a sidewalk there. The City won't have any leverage. We're limited on what we can require with site plan reviews. Community Development Director Reilly said you can condition the approval of the site plan review on their willingness to install a sidewalk just like you can in a PUD. Mayor Grant said PUDs are used to get some kind of trade off. He thinks it would be helpful to establish a grid that outlines which properties were developed before 2008 and which properties have a PUD. The city should be using a PUD. Councilmember Monson is hearing that if a business existed prior to 2008 most of the changes will be minor. She doesn't want to see our businesses be required to do a PUD if they want a second sign or for some other permitted use. She wants our businesses to have the flexibility they need. If they have to come in for something, she wants it to be appropriate based on what the request is. She thinks a site plan review gives us flexibility. Also, the City should be asking for things that are proportionate to what the business is proposing. She understands Councilmember Holden wasn't suggesting this, however, she wouldn't want to see Frattalone's be required to install a sidewalk if they are just proposing one additional sign. She is supportive of a site plan review because it will mostly be minor changes. She does like having the PUD where we can ask for things from bigger developments. Councilmember Rousseau asked if requesting a sidewalk is competitive with what surrounding cities are doing. Are we squeezing too hard? Community Development Director Reilly said we are aligned with our neighbors when it comes to new development. He doesn't have enough knowledge of surrounding cities codes prior to 2008. ARDEN HILLS CITY COUNCIL WORK SESSION — MAY 26, 2026 14 Based on the consultant recommendation, having multiple paths towards minor changes is not recommended. They would like us to use one approach. Councilmember Rousseau said the perception of Arden Hills is such that businesses outside of Arden Hills are reluctant to come here. They know we can be burdensome as a council. This has been a long-standing issue here. Her preference would be to use the site plan review process. Councilmember Weber agrees with a site plan review. Councilmember Holden would like to see the grid before she makes her decision. It's fine on small changes. The Gradient Building changed significantly when they did it. It would have been a site plan review. She keeps hearing that people don't want to do business here but that doesn't seem to be a problem. We haven't had any issues because we provide great service, we plow the streets and our taxes are low. Part of the problem is we need to be a little decent on the Planning Commission side and make sure our ducks are in a row there. She doesn't mind the site plan review. She understands the consultants want one option but she wants to be able to maybe get a couple more trees. If they are adding on, we can't hit them up for a parks fee because it's all established. How can we make sure we can still get what we want? She asked if Director Reilly is saying we can ask for something additional with a site plan review. Community Development Director Reilly confirmed. We can put conditions on the approval. Mayor Grant said he wants to see the grid before he makes his decision. Community Development Director Reilly said the consultants are proposing a parking maximum 1.5 times the minimum. The minimum number of parking spaces stays associated with use. This says that we know what the minimum number a use requires. If the business wants more, they can have more but only 1.5 times more than what is required, unless they apply for a conditional use permit, and not as much as they want. Mayor Grant said Catholic Aid Financial is another example. They have a small footprint. They have a lot of parking. They initially thought they would have other buildings. We've seen it go the other way, too. Boston Scientific has continued buying and remodeling buildings. Councilmember Monson asked how big of a problem this is. Do we need to set a maximum? Community Development Director Reilly said the intent is to avoid impacting established enterprises. It won't apply to those larger entities retroactively. It is not that big of a problem and this can be removed from the draft, if Council wants to. He would prefer to either eliminate the maximum or have a maximum that is a maximum. We don't need it and this would only apply to new developments. It may depend on what kinds of proposals we get for redevelopment south of Highway 96. The PUD process would allow us the opportunity to limit the maximum. Councilmember Holden said warehouses are the ones who request more parking than needed. Then the parking spaces are used to park semi trucks. That may be a reason to leave it in there. Councilmember Weber said there is an argument for maximums. As an example the Trident development is being constructed next to North Heights Church. What if Trident asked for 150 extra spots so North Heights Church can use some spots during their services and events. That ARDEN HILLS CITY COUNCIL WORK SESSION — MAY 26, 2026 15 would give North Heights additional spaces, freeing up a corner of their existing lot for something else. He said obviously this is a hypothetical, and it's not a huge issue but it could be an argument for maximums. He doesn't see an issue with having a maximum. If someone wants to go above that, there is the variance process available. Mayor Grant said a residential developer won't want any more than the minimum number of parking spots. He thinks this would only affect commercial development. Most of Arden Hills is already developed. He's not sure we need it. Council agreed to keep the language regarding maximums in the draft. Community Development Director Reilly said rather than establishing a maximum we could require people to go through a process and demonstrate that they need more than is allowed through a CUP. Then we can condition it for additional landscaping or other opportunities. Councilmember Holden said the point of this is we're trying to make this process easier and more streamlined. Creating a process to make businesses jump through hoops to show us that they need more parking doesn't make sense to her. Council agreed they didn't want to make an extra process. The language regarding maximums will remain in the draft. Councilmember Holden said we have an aging population. Why can't we require more handicap spaces in our ordinances. Community Development Director Reilly said the building code dictates the number of spaces, directly related to the provisions of the ADA. He will ask the City Attorney if we can have more. Councilmember Holden said we can't have one handicap space for a medical facility. Councilmember Monson said she would like to require spaces for veterans, expectant mothers and families with small children. D. Code of Conduct Not Discussed. E. E1 Use of City Property and E2. Immigration Enforcement Discussion Not Discussed. F. Rice Creek Commons/TCAAP Discussion Not Discussed. G. Agenda Planning Not Discussed. 4. COUNCIL/STAFF COMMENTS ARDEN HILLS CITY COUNCIL WORK SESSION — MAY 26, 2026 16 ADJOURN Mayor Grant adjourned the City Council Work Session at 9:25 p.m. Jen Estling David Grant Deputy Clerk Mayor Qresent,F [DRAFT--.-, 4a Years rP �9 N Approved: June 8, 2026 CITY OF ARDEN HILLS, MINNESOTA REGULAR CITY COUNCIL MEETING MAY 26, 2026 7:00 P.M. - ARDEN HILLS CITY COUNCIL CHAMBERS CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, Mayor David Grant called to order the regular City Council meeting at 7:00 p.m. Present: Mayor David Grant, Councilmembers Brenda Holden, Tena Monson, Emily Rousseau and Kurt Weber Absent: None Also present: City Administrator Jessica Jagoe; City Attorney Kori Land; Public Works Director/City Engineer David Swearingen; Finance Director Joua Yang; Community Development Director Jacob Reilly; and Assistant to the City Administrator/City Clerk Julie Hanson PLEDGE OF ALLEGIANCE 1. APPROVAL OF AGENDA Councilmember Holden requested Item 8D, 8E and 8F be pulled from the Consent Calendar for discussion as Items 9A, 9B and 9C. MOTION: Councilmember Holden moved and Councilmember Weber seconded a motion to approve the meeting agenda as amended. The motion carried (5-0). 2. TCAAP/RICE CREEK COMMONS UPDATE City Administrator Jagoe stated the JDA Advisory Committee met on May 21 st. At this meeting, JDA staff provided a verbal update on the analysis that is being done for the hybrid approach that the JDA is considering for future development of the California parcel. JDA staff continues to refine strategies to approach a future solicitation of potentially 4-5 development areas and how that might be facilitated for the timing of release simultaneously or in short succession of ARDEN HILLS CITY COUNCIL — MAY 26, 2026 2 each other. Staff is establishing Developer expectations that need to be considered for this hybrid approach and included as part of a future solicitation. From this discussion, the JDA Commissioners on the Advisory Committee will be bringing forth a recommendation to proceed with the hybrid approach to the full JDA at their next meeting on Monday, June 1st at 5:30 PM. The JDA's consideration of this recommendation would give JDA staff direction to continue defining Developer expectations, as well as request the City and County discuss the cost recovery of public improvements as outlined in the Joint Powers Agreement and certain development terms that will be memorialized in a cooperative agreement between the two parties for the future development of Rice Creek Commons. Councilmember Holden inquired if work would begin on the spine road this year. City Administrator Jagoe reported pre -staging elements would begin this year and grading work and construction would begin next year. Councilmember Holden asked if the Round Lake restoration work agreement had been finalized. City Administrator Jagoe stated she was uncertain if the agreement has been finalized, but she understood the remediation area has been defined. Councilmember Holden questioned if staff had any updates on the lawsuit. City Administrator Jagoe commented she did not have any updates on the lawsuit. City Attorney Land reviewed an email she sent to the City Council, noting there was a modification to the scheduling order due to court scheduling and the volume of discovery that was occurring. Councilmember Holden discussed how a piece of property on TCAAP sold and noted this parcel was not part of the Ramsey County property but was owned by the GSA. Councilmember Rousseau asked if the preconstruction for the spine road would include mass grading of the site. City Administrator Jagoe reported mass grading would occur in 2027. Public Works Director/City Engineer Swearingen commented utilities would be installed across Highway 96 at Rice Creek and tree clearing would be occur in 2026. He explained construction of the roadway would occur in 2027 and 2028. Mayor Grant stated discovery for the lawsuit was to be completed by 8/31 of this year. He asked if discovery has already started. City Attorney Land explained the discovery phase was when the parties were exploring each other's information through a very regulated process. She noted this included the exchange of documents, exchange of admissions and depositions in order to prepare for a trial. ARDEN HILLS CITY COUNCIL — MAY 26, 2026 3 Councilmember Holden questioned if the osprey nests would be addressed per DNR requirements prior to work beginning at Rice Creek Commons. City Administrator Jagoe reported Ramsey County was working with the DNR on this matter. She understood that fencing would be installed this September in order to protect the endangered species onsite. Mayor Grant commented the lawsuit that was referenced was the lawsuit Alatus filed against the Joint Development Authority (JDA) which was a combination of the City and the County. He reported an entirely different law firm would be defending the JDA. 3. PUBLIC INQUIRIES/INFORMATIONAL Lynn Diaz, 1143 Ingerson Road, questioned what the City's process would be for considering ADU's. She indicated New Brighton City Council spent nine months reviewing and finalizing their code amendments for ADU's. She hoped the Council could work through this process, considering all impacts while not making this process too onerous for property owners. She believed ADU's would be a good option for adding affordable housing to the community. 4. RESPONSE TO PUBLIC INQUIRIES A. Public Inquiry Response from May 11, 2026 Regular City Council Meeting Mayor Grant provided a verbal update on the public inquiry response from the May 11, 2026 Regular City Council meeting. He explained he requested staff notify all Economic Development Commission members that there were openings on the EDA. He reported there were public announcements made by the City and more directly by Councilmember Rousseau at the November 25 EDC and December 17 EDC where she told this group there were two opens spots on the EDA and that the Mayor would be determining the selection process. He explained that the EDC members were asked at the December 17 EDC meeting if there was interest and two members showed interest at that time. He indicated only EDC members were eligible to serve on the EDA. He stated he set up an interview for each person that indicated they were interested in applying and developed a process that included all EDC members. He reported since January of 2023, he has never been asked by other City Councilmembers to participate in their committee interviews or provide questions. He stated committee liaisons have never provided Council with their questions, responses, or who was or was not interviewed. He indicated he followed the process he developed and interviewed the highest ranked candidates until two accepted. He explained this process took two interviews and he took notes. He commented he made it clear these notes were available for the Council to review, but he was not asked any questions. He clarified the appointments for the EDA were placed on the Consent Calendar, as were all other committee appointments and could have been removed for Council discussion. He reported in terms of information sharing, since January of 2023, Council liaisons to committees have not shared information with the Council as a whole. He indicated the last question to address was if the EDA terms could be changed to four years instead of six. He directed this question to the City Attorney. City Attorney Land stated Minnesota State Statute 469.095, Subdivision 2(c) requires a six year term for EDA members, which meant the term could not be changed by the City Council. She ARDEN HILLS CITY COUNCIL — MAY 26, 2026 4 explained that the EDC members appointed to the EDA would have the same voting rights as the other EDA members. 5. PUBLIC PRESENTATIONS None. 6. STAFF COMMENTS A. Transportation Update Public Works Director Swearingen reported that pipe work was completed along Highway 51 at Old Snelling Avenue. He noted MNDOT would be closing northbound Highway 51 on Friday, May 29 through Monday, June 1 for paving operations. He commented that this project has experienced some delays due to unforeseen private utility conflicts which was impacting the project timeline. He reported information on the Highway 51 project was available on the City's website. 7. APPROVAL OF MINUTES None. 8. CONSENT CALENDAR A. Motion to Approve Consent Agenda Item - Claims and Payroll B. Motion to Approve Appointment of Temporary Public Works Maintenance Worker C. Motion to Accept Resignation of Parks and Recreation Manager D. Motion to Appr-elve Or-dina-mee 2026 008 Related to Committees and Commissions, E. Motion to Appr-eve O-dinanee 2026 009 Rel&teto Par4ing Regulations G. Motion to Approve Payment of 2025/ 2026 Bulk Road Salt Purchase H. Motion to Accept Resignation of Finance Director L Motion to Authorize Recruitment of Finance Director J. Motion to Approve Payment of Pay Request # 1 — 2026 PMP Street & Utility Improvement MOTION: Councilmember Holden moved and Councilmember Monson seconded a motion to approve the Consent Calendar as amended and to authorize execution of all necessary documents contained therein. The motion carried (5-0). 9. PULLED CONSENT ITEMS A. Motion to Approve Ordinance 2026-008 Related to Committees and Commissions ARDEN HILLS CITY COUNCIL — MAY 26, 2026 5 Councilmember Holden requested staff provide further information on this item, noting she did not understand why the City would want to limit the number of members on a Committee or Commission. City Administrator Jagoe stated at the May llth work session, the Council discussed several Committees and Commissions related to the composition of each and the re-establishment of some. The following is a summary of the background and proposed amendments. • Section 220.05 — Parks, Trails, and Recreation Committee o The current ordinance allows for up to 12 regular members and 1 youth member. The Parks, Trails, and Recreation Committee (PTRC) discussed the committee size at both its January and February 2026 meetings. At the February 2026 meeting, the committee passed a motion recommending that the ordinance be revised to state that the PTRC may be comprised of up to seven regular members and two youth members. City Council discussed this amendment and directed City staff to bring forward an amendment to reduce the committee composition to seven regular members and two additional youth members. • Section 220.06 — Financial Planning and Analysis Committee o As part of the Alternative Funding Sources discussion, City staff proposed reengaging the Financial Planning and Analysis Committee (FPAC). 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. At that time, an ordinance amendment was adopted to strike this committee from the city code. City Council direction from the May I Ith work session was to reestablish this committee and bring forth an ordinance amendment. The draft language for City Council consideration is the city code language that was struck, except for changes to require the committee membership to be limited to City residents and to have an odd number of members so increasing from previously at six to seven, per the recommendation of the City Attorney. • Section 220.07 — Human Rights Commission o The City Council directed staff to bring forward an ordinance amendment to reestablish a Human Rights Commission using the City of Shoreview as an example. During the work session discussion, the Council discussed mirroring the composition of PTRC with seven regular members and two additional youth members. In researching this topic, Staff found that the City of Arden Hills adopted Ordinance 169 in 1973, establishing a Human Rights Commission. As part of the proposed amendment, Ordinance 169 would be repealed in its entirety. The City Attorney has confirmed that there is no statutory requirement for the Mayor to appoint (similarly to an Economic Development Authority). Therefore, the proposed language mirrors other Committees/Commissions with the standard language "members appointed by the City Council". The City Council will need to further define the purpose statement and responsibilities of the Human Rights Commission, which will be brought back to a future City Council work session for discussion. ARDEN HILLS CITY COUNCIL — MAY 26, 2026 6 City Administrator Jagoe reported in all three sections of the proposed ordinance language, the City is adding overall broad duties and functions for each of these groups. The City Attorney through this review has identified that our current ordinance for Committees/Commissions listed under Section 220 states that "The duties and functions of the Commission shall be included in the Annual Resolution appointing new members and may be changed by Council Resolution, from time to time, based upon the needs of the City." She has instructed that these duties need to be incorporated into the ordinance. Therefore, the City Attorney has incorporated standard language within the proposed ordinance which summarizes a list of broad duties to be performed. Upon approval and adoption, city staff will begin advertising for recruitment as needed for each of the above. Councilmember Holden stated in reading the PTRC minutes she understood this group used to have 12 members, but that this has become cumbersome. She questioned why the number was being reduced versus being more inclusive. She explained she was struggling to support a reduction in the PTRC given how much work there was to do in the City's parks. She noted this group was expanded in order to allow for more diversity within the PTRC. Councilmember Rousseau indicated the PTRC meets from 6:30 p.m. to 8:00 p.m. and there has been challenges with allowing everyone to speak. She noted the City now had the adopt a park program in place, which allowed residents to get involved with the City's parks. She commented the Chair was doing a great job at governance and noted a smaller sized committee would allow for more space to speak. Councilmember Holden asked if non -committee members were coming in and speaking at the PTRC meetings. Councilmember Rousseau commented she was referring to PTRC members speaking about matters they were passionate about which was leading to time management concerns for the PTRC meetings. She reiterated that the PTRC made a recommendation to have seven members and she supported this recommendation. Councilmember Holden inquired what type of diversity was on the PTRC at this time and questioned if all neighborhoods were being represented. Councilmember Rousseau stated she would not speak to this. Councilmember Holden expressed concern with supporting the PTRC being reduced to seven members, noting the remaining members could all be from the same neighborhood. She believed it was important to have a diverse group of residents from all throughout the community on the PTRC. Mayor Grant indicated he had an issue with this as well. He appreciated the fact there were passionate members on the PTRC and questioned why this meant the number of members had to be reduced. He supported the City being more inclusive than limiting when it comes to membership. Councilmember Weber stated this was interesting, because now the Council wanted to know where all committee members were from in order to understand their stake or interest in Arden ARDEN HILLS CITY COUNCIL — MAY 26, 2026 7 Hills. He inquired if the Mayor asked where the EDC members lived before appointing them to the EDA. He feared this item was pulled because Councilmember Holden missed a meeting. Councilmember Monson explained it was her opinion this was productivity ineffectiveness. She indicated the recommendation came from the PTRC and noted the Council does not have wards. She stated there was no requirement for any committee to be represented by certain wards or neighborhoods in the City. She questioned why this would apply to the PTRC. MOTION: Councilmember Monson moved and Councilmember Rousseau seconded a motion to adopt Ordinance 2026-008 to amend Chapter 2, Section 220 — Boards, Committees, and Commissions related to Subsections 220.05 — Parks, Trails, and Recreation Committee, 220.06 — Financial Planning and Analysis Committee, and 220.07 — Human Rights Commission. Councilmember Holden stated she did not appreciate the attack from Councilmember Weber about her missing a meeting. She explained now was the time for her to ask questions. She indicated there were other committees where a resident's location was considered. She appreciated how productive the PTRC was and it was her hope this group would encompass as many residents as possible. She indicated this group would be brought from twelve members to six members because the group would now have two youth members. Mayor Grant questioned if the PTRC would have seven members plus two youth members. City Administrator Jagoe reported the PTRC would have seven members appointed by the City Council and two additional youth members may be appointed. She indicated the ordinance language states the membership is open to any resident or non-resident affiliated with an Arden Hills business, non-profit or community organization that was interested in the City's parks, trails and recreation programs. At all times, a majority of the committee membership shall be current residents of Arden Hills, geographical balance may be used for selecting a new member. Mayor Grant pointed out that the ordinance speaks to having a geographical consideration for this group. He reiterated that he wanted to include more people in order to have more resident involvement. He recommended this approval be divided into subsections. AMENDMENT: Mayor Grant moved and Councilmember Holden seconded a motion to subdivide the motion into three separate votes. Councilmember Weber stated there has not been any issues with the other two subcommittees. He supported the Council taking action on the previous motion that was on the table. Councilmember Holden indicated she supported the FPAC and Human Rights Committee changes but noted she did not support the PTRC recommendation. Mayor Grant noted he was for the FPAC and Human Rights Committee recommendations as well but noted he did not support the PTRC recommendation because the changes were not inclusive. ARDEN HILLS CITY COUNCIL — MAY 26, 2026 8 A roll call vote was taken. The amendment to divide the motion into three separate votes failed 2-3 (Councilmembers Monson, Rousseau and Weber opposed). A roll call vote was taken. The motion to adopt Ordinance 2026-008 to amend Chapter 2, Section 220 — Boards, Committees, and Commissions related to Subsections 220.05 — Parks, Trails, and Recreation Committee, 220.06 — Financial Planning and Analysis Committee, and 220.07 — Human Rights Commission carried 3-2 (Councilmember Holden and Mayor Grant opposed). MOTION: Councilmember Monson moved and Councilmember Weber seconded a motion to authorize publication of summary ordinance. The motion carried 4-1 (Councilmember Holden opposed). B. Motion to Approve Ordinance 2026-009 Related to Parking Regulations Councilmember Holden stated she had an issue with Subdivision 5 and asked if anyone on staff had spoken with residents in the Crystal/Venus/Ramsey area which was near the high school. She explained the reason this this went to six hours was because of the overflow parking from the high school. Councilmember Weber indicated he did not hear from anyone in this neighborhood. Councilmember Monson reported she did not hear from anyone in this neighborhood but did hear from people in other neighborhoods. Mayor Grant explained he heard from residents in the Janet Court area regarding parking issues. He stated the parking issues in the Venus area were from the Mounds View High School. He reported if the hours were extended as proposed, these residents will be impacted. Councilmember Holden commented she was concerned with the fact the City was looking to extend the parking hours. Councilmember Weber stated the hours allowed for parking were part of the parking regulations. City Administrator Jagoe reported at the May I Ith Council Work Session the agenda item was titled Overnight Parking Regulations and the intro discussed the overnight parking regulations as well as Subdivisions 1, 4 and 5 which fold into number of vehicles, hours and snow emergency requirements. Councilmember Weber thanked staff for this clarification. He was of the opinion the proposed changes were within the bounds of the park regulations. He questioned what the 10 hours serves versus 24 or 72. He suggested school specific regulations/signage be considered for the streets surrounding the high school. Mayor Grant questioned if the area surrounding the high school was posted for 4 hour parking. ARDEN HILLS CITY COUNCIL — MAY 26, 2026 9 Public Works Director/City Engineer Swearingen explained a portion of Janet Court had specific signage that regulated parking Monday through Friday during school hours. He was of the opinion the neighborhood was properly signed given the lack of complaints from neighbors or comments from the sheriff's department. He noted parking was something staff takes feedback on and adjustments can be made. Councilmember Monson commented the reason the hours were extended to 10 hours was to allow someone to park on the street overnight. She explained she could support a separate conversation at a future work session to discuss parking around the high school. Mayor Grant reported the previous parking regulation restricted on -street parking from 2:00 a.m. to 6:00 a.m. He indicated he supported keeping this restriction in place November through April. He stated he supported this ordinance going back to a work session for further discussion. Councilmember Rousseau explained she would like to move on with this item. MOTION: Councilmember Rousseau moved and Councilmember Weber seconded a motion to adopt Ordinance 2026-009 to amend Parking Regulations in City Code Section 800.03, Subd. 2 — Overnight Parking and Subd. 5 — Parking on Public Streets. Mayor Grant stated he supported some of the proposed changes but not all of the proposed changes. Councilmember Holden commented on how it appears these changes were in reaction to several complaints the City received and did not thoroughly address all of the parking issues in the City. She called the question. MOTION: Councilmember Holden moved and Mayor Grant seconded a motion to call the question. A roll call vote was taken. The motion carried 4-1 (Councilmember Weber opposed). A roll call vote was taken to adopt Ordinance 2026-009 to amend Parking Regulations in City Code Section 800.03, Subd. 2 — Overnight Parking and Subd. 5 — Parking on Public Streets. The motion carried (5-0). C. Motion to Approve Volunteer Recognition Policy Councilmember Holden requested coaches have their own section, noting there was always a shortfall when it came to coaches in the community. She spoke to the time commitment provided by the coaches in the community. She also supported coaches receiving a letter of appreciation from the City. MOTION: Councilmember Holden moved and Mayor Grant seconded a motion to approve the Volunteer Recognition Policy as amended placing Coaches under Committee, Commission Member Terms and Resignations. Councilmember Monson asked if Committee members receive more recognition from the City than non -committee members. ARDEN HILLS CITY COUNCIL — MAY 26, 2026 10 City Administrator Jagoe explained Committee and Commission members receive a letter signed by the City Administrator, receive a thank you card signed by the City Council and are recognized in the City newsletter. She reported general volunteers, which is where coaches are listed, receive a thank you card signed by the City Council. Councilmember Weber questioned if coaches are paid. Mayor Grant clarified that coaches are not paid. The motion carried 4-1 (Councilmember Rousseau opposed). 10. PUBLIC HEARINGS None. 11. NEW BUSINESS A. Ramsey County League of Local Governments (RCLLG) Council Liaison and Alternate Appointments Assistant to the City Administrator/City Clerk Hanson stated at its May llth, 2026 work session, the City Council discussed liaison assignments to the Ramsey County League of Local Government as well as two City Committees/Commissions that are being reestablished in 2026. Council should discuss the following appointments: Financial Planning and Analysis Committee Council Liaison: Staff: Finance Director Staff Alternate: City Administrator Human Rights Commission Council Liaison: Staff: City Administrator Ramsey County League of Local Government (RCLLG) Council Liaison: Council Alternate: Councilmember Weber asked when the FPAC and Human Rights Commission meetings were held. Assistant to the City Administrator/City Clerk Hanson stated this has not yet been established. Councilmember Rousseau reported Councilmember Monson had expressed an interest in serving as the liaison to FPAC. She commented she would be interested in serving as the liaison to RCLLG and understood Councilmember Weber was interested in serving as the alternate for this group. Councilmember Holden inquired if anyone from the City could attend the RCLLG meetings. ARDEN HILLS CITY COUNCIL — MAY 26, 2026 11 Assistant to the City Administrator/City Clerk Hanson stated this was the case as the meetings are actually public. Councilmember Monson supported the recommendations from Councilmember Rousseau. Mayor Grant stated he was interested in serving on FPAC as well. Councilmember Monson inquired when FPAC would begin meeting again. City Administrator Jagoe indicated this would be largely dependent upon the City's responses to the Finance Director position. Councilmember Holden questioned if two liaisons could serve on FPAC. Councilmember Monson supported a liaison being appointed noting she did not anticipate FPAC would be a very active group in 2026. Councilmember Weber stated he supported the recommendations from Councilmember Rousseau. Councilmember Rousseau commented she would be willing to serve as the liaison to the Human Rights Commission. MOTION: Councilmember Monson moved and Councilmember Rousseau seconded a motion to adopt Resolution 2026-027 Appointing 2026 City Council Liaisons for Commissions and Committees as follows: Financial Planning and Analvsis Committee Council Liaison: Councilmember Monson Council Alternate: Mayor Grant Staff: Finance Director Staff Alternate: City Administrator Human Rights Commission Council Liaison: Councilmember Rousseau Staff: City Administrator Ramsey County League of Local Government (RCLLG) Council Liaison: Councilmember Rousseau Council Alternate: Councilmember Weber The motion carried (5-0). 12. UNFINISHED BUSINESS None. 13. COUNCIL COMMENTS ARDEN HILLS CITY COUNCIL — MAY 26, 2026 12 Councilmember Weber stated he attended the Valentine Hills Carnival last week and it was extremely well attended. Councilmember Holden reported that the 751h Anniversary Committee continues to work on planning this year's event. She noted the group had spoken with Boston Scientific in order to discuss overflow parking. Mayor Grant explained he attended the Touch a Truck event and stated this was a very well attended event. Mayor Grant reported he received a request from Kayla Drake from Momentum Advocacy asking the City to consider what phase two looks like. He explained Ms. Drake was looking for the City to sign on to the byline, noting the headline was "How Local Cities Showed Up for Minnesota During Operation Metro Surge" written by Safe and Stable Communities. He asked if this was something the Council wanted to sign onto. Councilmember Rousseau asked if this was something the Mayor wanted to sign onto. Mayor Grant explained he supported signing onto the language that addresses funding for impacted businesses. Councilmember Holden inquired if the City had a list of businesses that were impacted by Operation Metro Surge. She anticipated the City did not have a list of businesses that described how local businesses were impacted. Mayor Grant agreed there may be other cities that had larger impacts. He indicated Ms. Drake was looking for several communities to sign on to her byline. Councilmember Weber clarified Ms. Drake was looking for the City to sign onto a letter that would ask the State legislature to spend money here or elsewhere. Mayor Grant commented that this letter was written by the Safe and Stable Communities on behalf of the member cities and would be asking the State legislature to provide funding for businesses that were impacted by Operation Metro Surge. He stated Momentum Advocacy has written a letter and was seeking support from member cities. Councilmember Weber stated this action would not cost the City much if not anything. He indicated he would support the City signing onto this letter as a show of support for the damage that occurred during Operation Metro Surge. Councilmember Holden explained she could support the Mayor signing this letter but wanted the mayor's that signed this letter to have the power to get State funding for impacted small businesses. Mayor Grant indicated he could sign onto the letter, but make it known the City could acquiesce to larger communities that had more impacts. Councilmember Rousseau requested the email the mayor received be forwarded to the entire Council. ARDEN HILLS CITY COUNCIL — MAY 26, 2026 13 Mayor Grant commented he would have staff forward the email onto the Council. ADJOURN MOTION: Mayor Grant moved and Councilmember Weber seconded a motion to adiourn. The motion carried (5-0). Mayor Grant adjourned the Regular City Council Meeting at 8:35 p.m. Julie Hanson City Clerk David Grant Mayor CONSENT ITEM 8A 'It EN HILLS MEMORANDUM DATE: June 8, 2026 TO: Honorable Mayor and City Councilmembers Jessica Jagoe, City Administrator FROM: Joua Yang, Finance Director Pang Silseth, Accounting Analyst SUBJECT: Claims and Payroll Listing Budgeted Amount: Actual Amount: N/A N/A Council Should Consider Motion to approve, table or deny the following: • Claims and Payroll Listing All items need a simple majority for action unless otherwise noted. Funding Source: N/A Background Payroll is processed biweekly and accounts payable is processed weekly. Budget Impact N/A Attachments 2026 Payroll #12 Paid Claims-5/16/2026-5/29/2026 (Check Nos. 54201-54230 and ACH Checks) Total Payroll Total Accounts Payable $177,235.05 $177,235.05 $472,603.60 $472,603.60 Total Claims $649,838.65 CITY OF ARDEN HILLS PAYROLL # 12 CHECKS DATED: 06/05/26 Biweekly: 05/16/26 - 05/29/26 EMPLOYEE DEDUCTIONS AMT. I CITY BENEFIT Payment Method FIT 9,364.54 EFT EFT EFT EFT A/P Check* A/P Check* A/P Check* A/P Check* A/P Check* A/P Check* A/P Check* EFT EFT EFT A/P Check* EFT FICA Oasdi 7,071.22 7,071.22 FICA Medicare 1,653.73 1,653.73 SIT 4,713.80 TOTAL TAXES 1 22,803.291 8,724.95 Paid Family Medical Leave -ER Add'l 178.82 Paid Family Medical Leave -ER 524.45 Paid Family Medical Leave-EE 524.45 TOTAL PFML PREMIUMS 1 524.451 703.27 Health Premium 2,979.82 38,005.94 Dental Premium 349.94 842.56 FSA Health Care Reimb. 162.50 FSA Dependent Care Reimb. 156.25 TOTAL FLEXIBLE SPENDING 1 3,648.511 38,848.50 HSA Health Saving 1 1,620.741 1,500.00 TOTAL HEALTH SAVINGS 1,620.741 1,500.00 PERA 7,069.03 8,156.57 MissionSquare 2,989.58 0.00 Central Pension Fund -Union 2,496.00 MN State Retirement System 1,412.30 TOTAL RETIREMENT 1 13,966.911 8,156.57 .FLAG 22.76 EFT A/P Check* A/P Check* A/P Check* A/P Check* A/P Check* ife/Addl/Dep Life 114.34 107.50 ife/Addl non -tax 28.93 TD/STD Insurance 1,544.37 ERA Life Insurance 48.00 JOE 49 Dues (Union) i 140.00 'OTAL VOLUNTARY 1 1,898.40 107.50 Total Employee Deductions 44,462.30 Net Payroll 0.00 Direct Deposit 74,731.96 Gross Payroll Tie -Out 119,194.26 Plus City Paid Benefit 58,040.79 TOTAL PAYROLL COST 177,235.05 FICA TIE -OUT Gross Payroll 119,194.26 Less Total FSA 3,648.51 Less Total H.SA 1,620.74 Less Voluntary Ins 51.69 Net P/R Subject to FICA 114,052.14 FICA Oasdi @ 6.20% 7,071.22 FICA Medicare @ 1.45% 1,653.73 EFT Accounts Payable Checks by Date - Detail by Check Date User: pang.silseth Printed: 6/3/2026 2:34 PM ---ARQEN HIILLS Check No Vendor No Vendor Name Check Date Check Amount Invoice No Description Reference ACH 0327 STAPLES INC 05/22/2026 6062208737 Supplies 94.03 6062208737 Supplies 133.47 Total for this ACH Check for Vendor 0327: 227.50 ACH 0387 MISSIONSQUARE #302482 05/22/2026 PR 26-11 PR Batch 00200.05.2026 MissionSquare EE Pen PR Batch 00200.05.2026 Mis; 365.14 PR 26-11 PR Batch 00200.05.2026 MissionSquare EE Dec PR Batch 00200.05.2026 Mis: 2,580.00 Total for this ACH Check for Vendor 0387: 2,945.14 ACH 10487 LUCAS MILLER 05/22/2026 05192026 Mileage Reimbursement - APWA Conference 197.20 05192026 Mileage Reimbursement - per diem APWA confe 96.75 Total for this ACH Check for Vendor 10487: 293.95 ACH 10594 JENNIFER ESTLING 05/22/2026 05132026 Mileage Reimbursement 4/9/26-5/11/26 87.17 05132026 Reimbursement MCFOA Institute 130.56 Total for this ACH Check for Vendor 10594: 217.73 ACH 10634 JOHNSON CONTROLS BUILDING SOL] 05/22/2026 1-137673582834 HVAC Encryption Updates 1,546.20 Total for this ACH Check for Vendor 10634: 1,546.20 ACH 1125 BOLTON & MENK INC 05/22/2026 0393771 Planning Services Maplewood Develop #859 PC 5,660.00 0394955 2026 PMP 12,494.87 Total for this ACH Check for Vendor 1125: 18,154.87 ACH 6129 FASTSIGNS of Roseville MN 05/22/2026 204-70986 Nameplates 174.00 Total for this ACH Check for Vendor 6129: 174.00 ACH GrantD DAVID GRANT 05/22/2026 05142026 Mileage Reimbursement-9 Cities Meeting 14.07 Total for this ACH Check for Vendor GrantD: 14.07 ACH SRFC SRF CONSULTING GROUP INC 05/22/2026 16750.00-29 Old Highway 10 Services -April 10,200.12 Total for this ACH Check for Vendor SRFC: 10,200.12 54201 AR-GLAC GLACIAL RIDGE DRILLING INC 05/22/2026 ROW 2025-01469 Escrow Refund # 854, ROW 2025-01469 1,000.00 AP Checks by Date - Detail by Check Date (6/3/2026 2:34 PM) Page 1 Check No Vendor No Vendor Name Check Date Check Amount Invoice No Description Reference Total for Check Number 54201: 1,000.00 54202 1055 KODIAK POWER SOLUTIONS 05/22/2026 20205630 Load Bank Testing 4,200.14 20205630 Load Bank Testing 1,365.00 251782037 Booster -Service 92.68 Total for Check Number 54202: 5,657.82 54203 10596 LB CARLSON LLP 05/22/2026 256829 2025 Audit Services 1,528.00 256829 2025 Audit Services 1,528.00 256829 2025 Audit Services 801.00 256829 2025 Audit Services 1,528.00 256829 2025 Audit Services 1,528.00 256829 2025 Audit Services 1,727.00 Total for Check Number 54203: 8,640.00 54204 10486 MINNESOTA METRO NORTH TOURISA 05/22/2026 051426 SpringHill Suites April 2026 Lodging Tax 10,890.58 Total for Check Number 54204: 10,890.58 54205 0155 OFFICE OF MN IT SERVICES-ACCTS R 05/22/2026 W26040617 April Phones 751.04 Total for Check Number 54205: 751.04 54206 AR-PRAI1 PRAIRIE HOMES 05/22/2026 GE 2025-00479 Escrow Refund # 814, GE 2025-00479 7,676.69 Total for Check Number 54206: 7,676.69 54207 1208 PREMIUM WATERS INC 05/22/2026 610207-04-26 April Water 30.19 63317-04-26 April Water 108.97 Total for Check Number 54207: 139.16 54208 0811 RAMSEY COUNTY 05/22/2026 SHRFL-002402 Law Enforcement -May 165,980.24 Total for Check Number 54208: 165,980.24 54209 10550 RJ THOMAS MFG CO INC 05/22/2026 285765 Trash Receptacles 4,885.00 Total for Check Number 54209: 4,885.00 54210 10646 SITEONE LANDSCAPE SUPPLY LLC 05/22/2026 165770728-001 Mulch 503.57 Total for Check Number 54210: 503.57 54211 10495 TENET 05/22/2026 INV-51822 Supplies 43.08 INV-51823 Sprayer 202.40 Total for Check Number 54211: 245.48 54212 10645 SAMANTHA VILENDRER 05/22/2026 AP Checks by Date - Detail by Check Date (6/3/2026 2:34 PM) Page 2 Check No Vendor No Invoice No Vendor Name Description Check Date Reference Check Amount 05132026 Deposit 75th Anniversary Advertising 350.00 Total for Check Number 54212: 350.00 Total for 5/22/2026: 240,493.16 ACH 0192 GRAINGER INC 05/29/2026 9915445259 Supplies 58.32 9917625163 Supplies: Trash Bags 769.56 Total for this ACH Check for Vendor 0192: 827.88 ACH 0230 MTI DISTRIBUTING INC 05/29/2026 1509796-00 2026 Toro Mower 120,976.64 1510664-00 Return -349.58 1514969-00 Tine -Spoon 95.52 1515360-00 Deflector 250.69 1517363-00 Mower Tires 388.03 Total for this ACH Check for Vendor 0230: 121,361.30 ACH 1223 ADAM'S PEST CONTROL - MAIN 05/29/2026 4427175 May Pest Control 94.62 Total for this ACH Check for Vendor 1223: 94.62 ACH 1363 WATER CONSERVATION SERVICES IN( 05/29/2026 150899 1388 Arden Oaks Drive 541.30 Total for this ACH Check for Vendor 1363: 541.30 ACH 2490 CORE & MAIN LP 05/29/2026 V000039501 Watermain Parts 4,333.64 Total for this ACH Check for Vendor 2490: 4,333.64 ACH 2851 MC TOOL & SAFETY SALES INC 05/29/2026 025100 Supplies 73.25 Total for this ACH Check for Vendor 2851: 73.25 ACH 7804 MARTIN MARIETTA MATERIALS INC 05/29/2026 49159746 5/4/26 Asphalt Purchase 252.15 49159797 5/4/26 Asphalt Purchase 230.40 49179535 5/5/26 Asphalt Purchase 339.86 Total for this ACH Check for Vendor 7804: 822.41 ACH ALPI ALLEGRA PRINT & IMAGING INC 05/29/2026 179795 Business Cards 166.94 179874 Touch A Truck Signs 87.25 179904 May Newsletter 3,117.70 179904 May Newsletter Postage 1,266.61 Total for this ACH Check for Vendor ALPI: 4,638.50 ACH ZARN ZARNOTHG BRUSH WORKS INC 05/29/2026 0206172-IN Broom Refill 686.00 Total for this ACH Check for Vendor ZARN: 686.00 AP Checks by Date - Detail by Check Date (6/3/2026 2:34 PM) Page 3 Check No Vendor No Vendor Name Check Date Check Amount Invoice No Description Reference 54219 0131 BEISSWENGERS HOMETOWN HARDVI 05/29/2026 4392/6 Supplies 71.98 Total for Check Number 54219: 71.98 54220 0719 CITY OF ST PAUL 05/29/2026 IN65135 Asphalt Mix 996.27 Total for Check Number 54220: 996.27 54221 10516 DASH SPORTS LLC 05/29/2026 2026-141 Sports Programs 2,465.00 Total for Check Number 54221: 2,465.00 54222 0176 FRATTALLONES HARDWARE INC 05/29/2026 96292/A Supplies 18.99 Total for Check Number 54222: 18.99 54223 4999 HIRSHFIELD'S PAINT MFG INC 05/29/2026 0032923-IN Field Striping 1,331.76 Total for Check Number 54223: 1,331.76 54224 10330 KLEIN UNDERGROUND LLC 05/29/2026 62777 1330 Indian Oaks Cir 8,024.88 Total for Check Number 54224: 8,024.88 54225 1055 KODIAK POWER SOLUTIONS 05/29/2026 25113662 Booster: annual service & fuel pump repair 4,481.20 Total for Check Number 54225: 4,481.20 54226 1058 MIDC ENTERPRISES INC 05/29/2026 I0053373 Sprinkler Rotor 684.01 I0053496 Supplies 12.22 I0053502 Supplies 41.16 Total for Check Number 54226: 737.39 54227 1074 PRECISION LANDSCAPE & TREE INC 05/29/2026 91483 1301 Cannon Ave 1,800.00 Total for Check Number 54227: 1,800.00 54228 0811 RAMSEY COUNTY 05/29/2026 FLEET-001078 Fuel -April 2,300.06 PUBW-022053 Brine & Salt Q4, 2025 and Q1, 2026 56,000.62 Total for Check Number 54228: 58,300.68 54229 10638 STATE INDUSTRIAL PRODUCTS 05/29/2026 904203466 Supplies 252.66 Total for Check Number 54229: 252.66 54230 10609 WALTERS RECYCLING & REFUSE INC 05/29/2026 0009695247 April Recycling 20,250.73 Total for Check Number 54230: 20,250.73 AP Checks by Date - Detail by Check Date (6/3/2026 2:34 PM) Page 4 Check No Vendor No Vendor Name Check Date Check Amount Invoice No Description Reference Total for 5/29/2026: 232,110.44 Report Total (42 checks): 472,603.60 AP Checks by Date - Detail by Check Date (6/3/2026 2:34 PM) Page 5 CONSENT ITEM - 8B -ADEN HILLS MEMORANDUM DATE: June 8, 2026 TO: Honorable Mayor and City Councilmembers Jessica Jagoe, City Administrator FROM: Joua Yang, Finance Director SUBJECT: Approve 2025 City Financial Statements and Audit Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Council Should Consider Motion(s) to approve, table or deny the following: • 2025 City of Arden Hills Financial Report and Audit Results Discussion The 2025 financial statements and audit results are completed, and a presentation was made to the City Council by the City's auditor, Aaron Neilson of LB Carlson, LLP, earlier this evening. The reports will be submitted to both the State Auditor and the Government Finance Officers Association. Budget Impact None. Attachments None. Page 1 of 1 CONSENT ITEM - 8C -ADEN HILLS MEMORANDUM DATE: June 8, 2026 TO: Honorable Mayor and City Councilmembers Jessica Jagoe, City Administrator FROM: Joua Yang, Finance Director SUBJECT: Approve a Temporary Contribution to fund the City's portion of the new Lake Johanna Fire Department Station Project Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Council Should Consider Motion(s) to approve, table, or deny the following: • A temporary, short-term contribution of $90,750 to the City of Shoreview to fund the City's portion (24.2%) of the new Lake Johanna Fire Department station project Discussion On May 23, 2025, the City of Arden Hills made a payment to the City of Shoreview per the Fiscal Agent Agreement (Attachment A) between the Lake Johanna Fire Department (LJFD) Headquarters Joint Powers Board and the City of Shoreview. This payment funded the City's cost - share portion (24.2% or $2,882,506) of the new LJFD station. On May 20, 2026, the LJFD Headquarters Joint Powers Board met to discuss project status. While the project is expected to be fully on budget upon completion, a temporary funding deficit of approximately $375,000 is projected due to the anticipated delay in receiving final reimbursement from the State of Minnesota. To bridge this temporary gap, the LJFD Headquarters Joint Powers Board is requesting short-term contributions from its contracted cities. Arden Hills' portion will be 24.2% or $90,750 (Attachment B). Upon receipt of the reimbursement from the State of Minnesota, these temporary contributions will be returned to the cities. This is anticipated to occur in Fall 2026. Budget Impact The overall project remains on budget for completion. This request is strictly a timing/cash-flow need in order to bridge a projected, temporary cash -flow deficit for the Lake Johanna Fire Department (LJFD) Headquarters project caused by an anticipated delay in final reimbursement Page 1 of 2 from the State of Minnesota. Arden Hills will contribute $90,750 towards this temporary need, which is anticipated to be returned in Fall 2026. Attachments A. Fiscal Agent Agreement B. City of Shoreview Invoice #1638 Page 2 of 2 Attachment A FISCAL AGENT AGREEMENT THIS FISCAL AGENT AGREEMENT ("Agreement") is made and entered into this 15t' day of April, 2025, by and between the Lake Johanna Fire Department Headquarters Board, a joint powers agency created by that certain Joint Powers Agreement dated November 17, 2021, as amended (the "Board"), and the City of Shoreview, a municipal corporation and political subdivision of the State of Minnesota (the "City"). BACKGROUND RECITALS 1. A Headquarters Fire Station project has been approved to construct a new fire station (the "Project") located at 3535 Pine Tree Drive in Arden Hills, legally described as Lot 2, Block 1, 2 Pine Tree North, Ramsey County, Minnesota (the "Property"). 2. The Project construction contract has been or will be assigned to the Board, and the Board has or will accept the assignment of said construction contract. 3. The Board has adopted a Cooperative Construction Agreement which outlines construction administration responsibilities for the Project. 4. The Cooperative Construction Agreement requires the Board to appoint one of the cities or a third party as a fiscal agent to provide financial administration services for the Project (the "Fiscal Agent"). 5. The Cities of Arden Hills and North Oaks have requested that the City of Shoreview act as the Fiscal Agent. 6. The City of Shoreview has agreed to act as the Fiscal Agent, subject to and in accordance with this Agreement. The Parties incorporate the foregoing recitals and further agree as follows: AGREEMENT 1. Fiscal Agent Appointed 1. The City of Shoreview is appointed as the Fiscal Agent for the Board. II. Fiscal Agent Duties and Authority 1. Generally, the Fiscal Agent shall process invoices, collect and administer the three cities' matching funds, submit draw requisitions to the State of Minnesota concerning the $6,370,000.00 grant from the State of Minnesota being administered by the Department of Public Safety (the "State Grant"), and provide financial administration for the Project including bookkeeping and accounting concerning the Project funds. 2. More specifically, the Fiscal Agent shall complete the duties described as follows: a. Establish a dedicated bank account for the Board (the "Account'); maintain the Account in accordance with City of Shoreview internal accounting controls and GAAP standards. b. Invoice the Cities of Arden Hills, North Oaks, and Shoreview for their respective portions of Project funds, in accordance with the Cost Share Allocation, defined below. c. Review each pay application to ensure compliance with prevailing wage requirements before processing the same for payment. d. Process invoice payments for the construction of the Project; process other invoices as requested by the Board. e. Track deposits and expenses in compliance with applicable GASB pronouncements for tax-exempt bonds. f. Invest idle funds, if any, as reasonably prudent. g. Submit reimbursement requests to the State of Minnesota. h. Provide at minimum monthly financial reports to the Board and to the Cities of Arden Hills, North Oaks, and Shoreview. i. Provide a final Project report prepared for the Cities of Arden Hills, North Oaks, and Shoreview showing all transactions related to sources and uses of funds. j. Coordinate any audit responsibilities as required by the State of Minnesota. k. It is the intention of the Board to eliminate the duties of the Fiscal Agent at the conclusion of the Project including any final requirements such as accounting, other reporting, transfer of funds and other assets to the Board, etc. 3. The Fiscal Agent is hereby authorized to take every commercially reasonable action that a finance manager would need to carry out the duties described in this Agreement, including, but not limited to, the following: a. Opening, closing, and managing bank and other financial accounts, whether owned by or for the benefit of the Board. b. Signing/negotiating checks and other financial instruments. c. Evaluating, negotiating, and resolving claims. III. Project Costs and Initial Fund Contribution The anticipated remaining costs of the Project are as follows: Construction*: $13,619,069 Contingency: $1,361,907 Soft costs*: $2,762,100 P) Reimbursement**: $300,000 Building permit: $227,805 Watershed permit: $10,300 Total: $18,281,181 *Construction and soft costs are eligible for grant reimbursement from the State of Minnesota. **This reimbursement is due to the Lake Johanna Fire Department which used its reserve funds to cover costs in advance. The anticipated revenue sources for the Project are as follows: City of Arden Hills: $2,882,506 City of North Oaks: $1,703,299 City of Shoreview: $7,325,376 State of Minnesota: $6,370,000 Total: $18,281,181 3. The revenue source amount assigned to the cities is based upon the following formulas: Total Project cost ($18,282,019) - State of Minnesota funds ($6,370,000) _ city costs ($11,912,019) City Cost = $11,912,019 x cost share allocation: The "Cost Share Allocation" is as follows: City of Arden Hills: 24.2% City of North Oaks: 14.3% City of Shoreview: 61.5% 4. An initial fund contribution shall be required in the following amounts: 1. City of Arden Hills: $2,882,506 2. City of North Oaks: $1,703,299 3. City of Shoreview: $7,325,376 5. The Fiscal Agent shall submit invoices to each of the cities with the initial fund contributions due by May 30, 2025. 6. The cities will need to initially pay all costs related to the Project, including those eligible for reimbursement from the State of Minnesota. The Fiscal Agent will request reimbursement from the State of Minnesota on a regular basis. Reimbursement funds received by the Fiscal Agent from the State of Minnesota will be paid to the cities based upon the Cost Share Allocation, upon the Fiscal Agent's reasonable determination that there are sufficient reserve funds in the Account to pay anticipated Project costs as they come due. V. Use, Reimbursement, and Request for Additional Funds i. Project costs will be paid from the Account. 2. Idle funds shall be invested in accordance with Minnesota Statutes Chapter I I8A, or as amended; interest income will be retained in the Account. 3. Reimbursements received from the State of Minnesota will be paid to the cities according to the cost share allocation formula. 4. If additional sources of revenue are required to complete the Project beyond the funds initially provided by the cities, the Board will direct the Fiscal Agent to request additional funds based upon the Cost Share Allocation. At the conclusion of the Project, any remaining funds shall be paid to the cities based upon the Cost Share Allocation. VI. Fiscal Agent Fee 1. The fee for the Fiscal Agent shall be established at S90.00/hour and billed to the Board for work outlined in this Agreement. Additional work may be requested by a city or by the Board, but only work approved by the Board will be billed to and paid for by the Board. 2. Any work requested and approved in advance by a city will be billed to that city separately by the Fiscal Agent, Each Party is signing this Agreement effective as of the date first written above. Lake Johanna Fire Department Headquarters Board Date: ! 5� o-,S By. Mark Azman Its: Chair CITY City of Shoreview Date: By: �,G✓ Brad Martens Its: City Manager Attachment B Quantity IDescription I Unit Price IAmount 1 FIRE STATION #1 CONTRIBUTION FOR CASHFLOW 90,750.00 90f750.00 Total Invoice: 90,750.00 Credits Applied: 0.00 Payments Applied: 0.00 Invoice Balance: 90,750.00 CITY OF SHOREVIEW 4600 VICTORIA STREET NORTH SHOREVIEW, MN 55126 (651) 490-4600 CITY OF ARDEN HILLS 1245 WEST HWY 96 ARDEN HILLS, MN 55112-5794 INVOICE Customer ID: Invoice Number: Service Date: Invoice Date: Due Date: Remaining Unapplied Credits: Total Due: Property Address: [Empty Address] 3151 0000001638 05/21/2026 05/21/2026 06/22/2026 0.00 90,750.00 CONSENT ITEM - 8D MEMORANDUM DATE: June 8, 2026 TO: Honorable Mayor and City Councilmembers Jessica Jagoe, City Administrator FROM: Julie Hanson, Assistant to the City Administrator/City Clerk SUBJECT: Amended 2026 Fee Schedule Budgeted Amount: Actual Amount: Funding Source: Council Should Consider Motion to approve, table, or deny the following: Ordinance 2026-010 Appendix A — Amended 2026 Fee Schedule Publication of a Summary Ordinance 2026-010 A Summary Ordinance requires a 415 vote Background/Discussion Staff has identified two necessary corrections to the following sections of the 2026 Fee Schedule: II Building Construction (page 2 of draft amended fee schedule) o Plumbing Permits — Commercial This item needed to be updated to reflect the fee as "See Exhibit B attached to fee schedule" which mirrors the commercial plumbing plan review item XV Recycling Fee (page 15 of draft amended fee schedule) o Residential Additional Cart This item needed to be updated to reflect that additional residential recycling carts are $2.00 per month per cart The amended 2026 Fee Schedule will be updated on the City's website and the Summary Ordinance will be published in the St. Paul Pioneer Press. Page 1 of 2 Attachments Attachment A: Draft Ordinance 2026-010 — Appendix A — Amended 2026 Fee Schedule Attachment B: Summary Ordinance 2026-010 Page 2 of 2 'it Attachment A ,ARZEN HILLS City of Arden Hills Ordinance 2026-002 10 — Appendix A Amended 2026 Fee Schedule Administrative Chickens — Licenses Two years (Pro -rated for second $30.00 year $15.00 Dogs/Cats — Licenses Lifetime $50.00 Residents Dogs/Cats — Licenses (College Lifetime $15.00 Students) Dogs/Cats — Boarding $22.00 per day Dogs/Cats — $50.00 Impoundment Fee Dogs/Cats — Surrender Fee Each $25.00 Dogs — Residential Kennel Annual $21.00 License Dogs — Dangerous Dog Fee Annual $500.00 Dogs — Potentially Annual $250.00 Dangerous Dog Fee City Logo Use For -Profit Use (fee waived if $100.00 Application proof of Non -Profit status) Copying — $0.25 8 1/2 x 11 and Legal; $0.50 General City Material large. Per Page. Add postage if mailing copies Assessment Search $53.00 per half hour Private Activity Revenue Non-refundable application fee $500.00 Bonds Annual Administrative Fee 1/8 of 1% (0.125%) of outstanding principal balance of the bonds for the life of the bonds Reimbursement of all City costs H. Building Construction (All permits are non-refundable after 90 days) Residential Building Permits Permit Fees shall be based according to State Statute 326B.153 and are determined by the City's Building Official. Minimum $99.00 + $1.00 State Surcharge Escrow Determined by the Building Official up to $5,000.00 Commercial Building Permit Fees shall be based according to Permits State Statute 326B.153 and are determined by the City's Building Official. Minimum $99.00 + $1.00 State Surcharge Escrow Determined by the Building Official up to $20,000.00 Page 1 of x Residential Plan Review 65% of permit fee, except for residential projects requiring plan review that do not exceed $15,000.00 in valuation Commercial Building and 65% of permit fee for building and Mechanical Plan Review mechanical projects. Commercial Plumbing Plan See Exhibit `B" attached to fee Review schedule Temporary Certificate of Escrow To be determined by Building Occupancy CO Official Building Permits — $75.00 Re -inspection Building Permits — $99.00 + $1.00 State Surcharge fee Manufactured Home Location Building Permits — Demolition Permit Fee $99.00 + $1.00 State Surcharge fee Escrow $2,000 Building Permits — 100% of Permit Fee Special Investiations State Surcharge — Fee based on State Statute 326B.148 based on valuation State Surcharge — Fee based on State Statute Fixed Fees 326B.148 Plumbing Permits — $65.00 Minimum Fee Plumbing Permits — Residential $15.00 per fixture Plumbing Permits — , cnoi Prejeet value + $80 nn of See Exhibit `B" attached to fee Commercial schedule Electrical Permits — See Exhibit "A" attached to fee General schedule Mechanical Permits — $75.00 Minimum Fee Mechanical Permits — 2% of Project Value Residential Mechanical Permits — 1.50% of Project Value + $80.00 Commercial Fire Protection Permits — Fees shall be based according to Permit Fee State Statute 326B.153 and are determined by the City's Building Official Fire Protection Permits — Plan 65% of Permit Fee Review Fee Fire Protection Permits — Re- $63.25 per State Statute inspection 326B.153 Permit Refunds Refund requests must be in writing and will only go to the payee. No refunds if an inspection has been performed. The base/minimum fee will not be refunded. The license check fee will not be refunded. The State surcharge will not be refunded. Page 2 of x III. Liquor Licensing il On -sale 1,999 square feet (SF) or less $3,465.00 On -sale 2,000 (SF) — 2,999 (SF) $4,620.00 On -sale 3,000 (SF) — 3,999 (SF) $5,775.00 On -sale 4,000 (SF) or more $6,930.00 On -sale, Sunday $200.00 (340A.504 Subd. 3(b) limits $200 fee for Sunday sales) Off -sale $210.00 Club Fee $315.00 On -sale, Malt Beverage $126.00 Off -sale, Malt Beverage $42.00 On -sale, Wine $ 2,000.00 (340A.408 Subd. 2(c) limits fee to $2000 or half of on -sale license fee, whichever is less) Strong Beer When part of On -Sale Wine License No Charge Investigation Fee $158.00 Minor Consumption Violation with Server Training First Violation $500.00 Second Violation $1,000.00 Third Violation $1,500.00 Fourth Violation $1,500.00 Minor Consumption Violation First Violation $1,000.00 without Server Training Second Violation $2,000.00 Third Violation $2,000.00 Fourth Violation $2,100.00 and may be subject to license revocation orIV. Maps and Ordinances Zoning Ordinance Municipal Code Comprehensive Plan $0.25 per side Color Maps (8.5 x 11) $2.00 Color Maps (11 x 17) $4.00 Street Maps $2.00 As-Builts (I I x 17) Based on number of copies and staff time V. Parks & Recreation Security Deposit Page 3 of x Ball Field Tournaments $300.00 Warming House Rental / Ice $300.00 Rink Rental Picnic Pavilions $300.00 City Hall Rooms $300.00 Refunds (Applies to all Parks & Recreation Rentals) IL 30+ days $15 fee lin advance of rental 14-29 days in advance of rental a 50 /o refund 0-13 days No Refund in advance of rental Inclement Weather Renters may reschedule their event (Day of Event Determination for another day at no charge if the No Refund Only) City deems conditions make the rental unsafe or unusable. Ballfields Rental (Per 2 Hour Time Block) Youth Athletic Associations are subject to the same refund and payment policies as all other renters. All reserved dates are billable in full, regardless of use/non-use. Youth Athletic Association Field Rental — including $45.00 Non -Profit L-1_1 _l / 1 1 .- $60.00 Rental Ball Field Rental, Unlighted $125.00 Ball Field Rental, Lighted I $150.00 Tournaments Ball Field Rental, Lighted Ball Field Tournament Fee Fee includes on -site maintenance (Adult), staff for the full day. $595.00 Full Maintenance Ball Field Tournament Fee Fee includes field preparation and (Adult), one midday field drag $355.00 Minimum Maintenance Ice Rink / Warming Houses (Non -Public Hours Only) Warming House / Ice Rink $60.00 Picnic Shelters - Per Day (10 am -10 pm) Picnic Shelters — Resident $10.00 Picnic Shelters — Non -Resident $35.00 Picnic Pavilions - Perry & Cummings - Per Day (10 am -10 pm) Picnic Pavilions — Resident $140.00 Picnic Pavilions — Non- $225.00 r Page 4 of x Picnic Pavilions — Resident Non -Profit $95.00 Picnic Pavilions — Other Non- Profit $125.00 Community Gardens Garden Plot — One Plot $60.00 Garden Plot — Second Plot $30.00 City Hall Business Hours Rental - Community Room Resident Non -Profit $100.00 Resident For Profit $135.00 Non -Resident Non -Profit $145.00 Non -Resident For Profit $175.00 City Government or Army National Guard 0.00 City Hall Business Hours Rental - Small Conference Room Resident Non -Profit $55.00 Resident For Profit $65.00 Non -Resident Non -Profit $80.00 Non -Resident For Profit $90.00 City Government or Army National Guard $0.00 City Hall Non -Business Hours Rental - Community Room or Small Conference Room Scheduling outside regular hours is subject to staff availability. The City may deny requests if staff are unavailable. Resident Non -Profit $215.00 Resident For Profit $225.00 Non -Resident Non -Profit $235.00 Non -Resident For Profit $250.00 City Government or Army National Guard $0.00 City Hall Room Rental Add Ons Equipment Rental — DVD, VCR, T.V. $25.00 Page 5 of x VI. Planning and Zoning (Each separate land use request shall be charged a separate administrative fee and escrow even if submitted on the same application. Costs expended in reviewing and processing an application will be charged against the cash escrow and credited to the City. Charges to the escrow include planning and engineering staff time, City attorney and consulting fees, and mailing costs. If, at any time, a required cash escrow is depleted to less than 20% of its original amount, the applicant shall deposit additional funds in the cash escrow account as determined by the City. The escrow may be reduced or increased by the City Planner on a project by project basis.) Description: Escrow Fees: Initial Application Fees: Preliminary Plat Administrative Fee $600.00 Escrow $2,500.00 Final Plat Administrative Fee $400.00 Escrow $1,500.00 Lot Split/Minor Subdivision (R-1 and R-2 only) Administrative Fee $400.00 Escrow $1,500.00 Rezoning or Rice Creek Commons Regulating Plan Map Amendment Administrative Fee $500.00 Escrow $1,500.00 Comprehensive Plan Amendment Administrative Fee $600.00 Escrow $2,500.00 Variance or Permitted Adjustment Administrative Fee $400.00 Escrow $1,500.00 Conditional Use or Interim Use Permit/CUP or IUP Amendment Administrative Fee $500.00 Escrow $1,500.00 Planned Unit Development Master Plan or Special Development Plan Master Plan Administrative Fee $600.00 Escrow $2,500.00 Final Planned Unit Development or Final Special Development Plan Administrative Fee $400.00 Escrow $2,000.00 Planned Unit Development Amendment or Special Development Plan Amendment Administrative Fee $400.00 Escrow $1,500.00 Concept Review Administrative Fee $400.00 Escrow $1,500.00 Vacation of Easement Administrative Fee $200.00 Escrow $1,000.00 Site Plan Review Administrative Fee $600.00 Escrow $1,500.00 City Code Amendment Administrative Fee $500.00 Zoning Permit $2,000.00 Zoning Code or TRC Amendment Administrative Fee $500.00 Escrow $2,000.00 Page 6 of x Zoning Letter Administrative Fee $100.00 Land Use Requests — Not Already Administrative Fee $150.00 Specified Escrow $1,000.00 Zoning Permit Decks under 30", Driveways, $100.00 Fences, Sheds, Temporary Structures, and Chicken Coops Commercial Parking Lot $200.00 Resurfacing Recreational Vehicle Parking 7 Day Permit, renewable once per 12 $25.00 Permit months Home Occupation I Permit No Charge Home Occupation II Permit Administrative Fee $150.00 Escrow $500.00 Commercial Outdoor Display and $100.00 Sales Area Permit Commercial Recreation Outdoor $100.00 Permit Appeal of Administrative Zoning, Administrative Fee $200.00 Sign, or Subdivision Decisions Escrow $1,500.00 Rice Creek Commons Any portion of the Rice Creek Development Related Professional Commons development can prepay $2,743.00 per acre Services Charge an amount on behalf of future arcels to be developed and that the repayment amount will be netted out and the fee schedule will be updated annually. VIL Public Works/Engineering Outstanding Balance Escrow Balance owed on existing permits 110% of the amount owing from the same permittee Annual Utility Annual Registration Fee $80.00 Owner/Contractor Registration Administrative Fee $35.00 Right -of -Way Permit — Excavation Permit Base Fee $125.00 + $.55/LF of Trench or Excavation Directional Bore Escrow Determined by Public Works plus Outstanding Balance Escrow if applicable Right -of -Way Permit — Administrative Fee $35.00 Obstruction Obstruction Permit Base Fee $50.00 + $0.05/LF + $50.00/EA (per pole, cabinet, tree, etc.) Escrow Determined by Public Works plus Outstanding Balance Escrow if applicable Page 7 of x Right -of -Way Permit - Small Administrative Fee $35.00 Cell Wireless Facilities/DAS HUB (Up to 15 Locations per Small Cell Wireless Facilities/DAS $100.00 per site; $500.00 minimum application) HUB Permit Fee Rent & Maintenance Fee Rent: $180.00/year/utility company; lus Maintenance: $27/ ear/location Escrow Determined by Public Works plus Outstanding Balance Escrow if applicable Right -of -Way Permit — Permit Permittee request to extend dates $50.00 Extension specified within the permit Right -of -Way Permit — Delay In accordance with Minnesota Rule $25.00 + Permit Extension Fee Penalty 7819.1000 Subpart 3 Hydrant Meter Rental (for City Permit Fee, Monthly Rental and $200.00 + State Surcharge of $1.00 + related projects, only deposit Water Usage Rental of $50.00/mo, + applicable amount is required) standard water usage rate charged for consumption Deposit $2,500.00 Grading & Erosion Control Residential (grading work >2500 Resident Self -performed $60.00 Permit (required when land SF to 5000 SF or >50 CY or within Residential Remodel $200.00 disturbance is >2500 SF or >50 1000' of shoreland area) Residential New Build $300.00 CY or within 1000' of shoreland Non -Residential 0 to 1 acre $350 area, as outlined in Chapter 15 >1 acre to 5 acres $550 of City Ordinance) >5 acres to 10 acres $1100 >10 acres to 20 acres $1650 >20 acres to 40 acres $2,200 >40 acres $2750 plus $500 for each 10 acres thereafter Escrow Determined by Public Works plus Outstanding Balance Escrow if applicable City Performed Restoration Fee City restoration or corrective work Actual cost of materials and labor of permittee's responsibility plus 10% Administration fee Billable Rates for City Equipment and Labor: "Operator rate PL US equipment rate will be charged. All rates are per hour with a one hour minimum Equipment Rates Heavy equipment $175.00 Heavy trucks $175.00 Medium equipment $150.00 Medium trucks $150.00 Light equipment $100.00 Light trucks $100.00 Operator Rates Superintendent Regular $88.70 / Overtime $122.80 Lead Maintenance Worker Regular $64.40 / Overtime $88.60 Maintenance Worker Regular $61.70 / Overtime $84.70 Water Tower Permit Fees and Escrow Actual legal and consulting Telecommunications Plan engineering costs + $200 admin + Review and Inspections $2,500 escrow Water Tower Per Call -out No charge during normal business Telecommunications hours, otherwise After Hours Call - Maintenance or Repair Access out rates apply Page 8 of x Water shut-off/turn on Per Call -out (applied to water bill) No charge during normal business hours, otherwise After Hours Call - out rates apply Conducted outside normal business After Hours Call -out hours, minimum of 2 hours $100 per hour (Weekdays) Holiday or Weekend Call -out Minimum of 2 hours $150.00 per hour VIII. Utility Hookup Charges Water Permits — Service Per inspection $80.00 for Residential Installation/Repairs/Alteration/ $250.00 for Commercial Escrow Determined by Public Works plus Re -inspection (Regular Business Hours) Outstanding Balance Escrow if applicable Water Permits — Interior $45.00 Plumbing, New Home Water Permanent Disconnect Fee to disconnect $80.00 for Residential $250.00 for Commercial Escrow Determined by Public Works plus Outstanding Balance Escrow if applicable Curb Box and Service Lead, 1" $80.00 for residential Service Connection Escrow Determined by Public Works plus Outstanding Balance Escrow if applicable Larger than 1" Service Set by Engineer Connection Water Permits — Plan Check Set by Inspector Fee Water Permits — After Hours Call -out rate per visit, minimum $100.00 per hour (Weekdays) Inspection or Re- of 2 hours inspection Water Permits — Holiday or Call -out rate per visit, minimum $150.00 per hour Weekend of 2 hours Inspection or Re -inspection Water Meter/Spacer Charges Water Meter/Spacer Charges Standard Meter $495.00 3/4" Meter Model 25 Water Meter/Spacer Charges $720.00 1" Meter Model 70 Water Meter/Spacer Charges Contact Public Works for Quote Greater than 1" Customer Requested Water Fee includes removal of meter, 5/8" to 1" water meter: $250.00 Meter Accuracy Test installation and administration of temporary meter, testing services, and Greater than 1" meter: $500.00 returning meter to residence; Fee will be reimbursed if the meter is found to be inaccurate outside of AWWA allowed tolerances Water Connection Fee — $855.00 per acre or portion Connection fee for previously thereof un- served or expanded lots Page 9 of x Water Availability Fee The units are based on the — New or Additional Metropolitan Council's formula for $ 1,375.00 per unit Units calculating new sewer availability charge (SAC) units Rice Creek Commons This fee applies to the Rice $5,360.00 per unit Water Availability Fee Creek Commons development only. The units are based on the Metropolitan Council's formula for calculating new sewer availability charge (SAC) units Sewer Connection Fee — $840.00 per acre or portion Connection fee for previously thereof un- served or expanded lots Sewer Availability Fee The units are based on the — New or Additional Metropolitan Council's formula for $ 825.00 per unit Units calculating new sewer availability charge (SAC) units Rice Creek Commons This fee applies to the Rice $2,310.00 per unit Sewer Availability Fee Creek Commons development only. The units are based on the Metropolitan Council's formula for calculating new sewer availability charge (SAC) units Sewer Permits — Service Per inspection $80.00 for Residential Installation/Alternations/Repair Escrow Determined by Public Works plus s/Re-inspection (Regular Business Hours) Outstanding Balance Escrow if applicable Sewer Permits — Plan Review Set by Inspector Fee Sewer Permits — After Hours Call -out rate per visit, minimum $100.00 per hour (Weekdays) Inspection or Re- of 2 hours inspection Sewer Permits — Holiday or Call -out rate per visit, minimum $150.00 per hour Weekend Inspection or Re- of 2 hours inspection Sewer Access Charge Set by Met Council Annually $2,485.00 (Contact Met Council) Sanitary Sewer Utility Prohibited Sump Pump $100.00 per month Connection Surcharge IX. Miscellaneous/Retail Activities Boutique/Garage Sales Application/notification of City No charge Hall required Sidewalk Sales $53.00 Adult Cannabis Retail Sales $500 (Initial registration) Registration $1,000 (Renewal) Low Potency Hemp Edible $125.00 (Initial registration) Retailer Registration $125.00 (Renewal) Business Licensing — Includes arcade, dance hall, event Amusement and Event center, movie theater, $105.00 Facilities pool/billiard tables, bowling alleys, indoor tennis, skating facility, outdoor tennis, driving ranges, etc. Page 10 of x Business Licensing — Liability insurance required $210.00 Wholesale Bulk Fuel Storage Business Licensing — $6.50 per room Hotel/Motel Business Licensing — Courtesy $26.00 Bench, Non -advertising Business Licensing — Courtesy $79.00 Bench, Advertising Business Licensing — Includes musical devices, $15.00 per location + $15.00 per Mechanical/Electronic amusement rides, bowling machine Devices alleys, etc. (MN Statute 449.15 sets maximum permit fee at $15 per location and $15 per machine) Business Licensing — Retail Includes antique shops, Sales beauty/barber shops, boat dealers, $53.00 Christmas tree sales, dry cleaning, laundry, bakery, candy, meats, wholesale foods, caterers, motor vehicle sales, optometrist, mortuary, video sales/rentals, over-the-counter tobacco sales, vending machines (excluding tobacco), & other retail goods not listed Business Licensing — $21.00 up to 1,000 square feet Restaurants, Cafes, Coffee $42.00 for 1001-2000 square feet Houses, etc. $63.00 for 2001-3000 square feet (etc.) Business Licensing — $315.00 Restaurants, Drive-Thru Business Licensing — Service $105.00 Stations Business Licensing — Grocery $21.00 up to 1,000 square feet $42.00 for 1001-2000 square feet $63.00 for 2001-3000 square feet (etc.) Charitable Gambling Permit — Includes investigation fee Local $158.00 Per Minnesota State Statute, Chapter 349 3% of organizations' gross Gambling Tax receipts from all lawful gambling, less prizes paid out Lawful Gambling Fund 10% of net profits Tobacco Sales License Includes investigation fee $300.00 Fireworks Sales As part of existing business $100.00 (MN Statute 624.20 sets maximum permit fee at $100.00 Fireworks Sales Exclusive Business $350.00 (MN Statute 624.20 sets maximum permit fee at $350.00 Massage Therapist Annual Fee, Includes $53.00 investigation fee Massage Therapist Annual Fee, Includes $158.00 Establishment investigation fee Recreational Outdoor Archery $200 first year Range $50 annual renewal Page 11 of x Solicitors, Peddlers, Transient Permit — For -Profit Organizations Please reference Section 340 of the Municipal Code for more information $158.00 background investigation + $105.00 per month permit fee Solicitors, Peddlers, Transient Permit —Non -Profit Organizations Please reference Section 340 of the Municipal Code for more information No charge Tree Contractor License $50.00 X. Signs Initial Fee Per Sign $100.00 Permanent Signs, Annual Renewal Per Sign, 100 square feet or less (maximum allowable size) $25.00 Temporary Signs $50.00 Signs, Impoundment First Offense $50.00 Signs, Impoundment Second Offense $75.00 Signs, Impoundment XI. Miscellaneous Fees/Permit Rubbish Hauler Third Offense Annual $150.00 $158.00 Recycling Hauler Annual $158.00 City Contractor License Annual $80.00 Miscellaneous Permit Fee For all other permits not listed $40.00 Adult Cannabis Event Permit Fee Per Event $100.00 Staff Research $53.00 per half hour Penalties for Late Payment Failure to pay any penalty imposed shall be grounds for the suspension or termination of any license issued by the City 10% of license fee or $32.00, whichever is greater Adult Cannabis Sales, Illegal First Violation $1,000.00 Adult Cannabis Sales, Illegal Second Violation $2,000.00 Adult Cannabis Sales, Illegal Third Violation $2,000.00 Adult Cannabis Sales, Illegal Fourth Violation $2,000.00 and revocation of City registration Tobacco Sales, Illegal First Violation $1,000.00 Tobacco Sales, Illegal Second Violation within 36 months $2,000.00 plus 3-day license suspension Tobacco Sales, Illegal Third Violation within 36 months $2,000.00 plus 7 day license suspension Tobacco Sales, Illegal Fourth Violation within 36 months License revocation Candidate Filing Fee $2.00 Insufficient Funds/ $35.00 Returned Check Fee Rental Registration/Renewal $45.00 per rental unit Fee Rental Renewal Late Fee For renewals received after January $90.00 per rental unit 31 Residential Contractor License $5.00 Check Business Subsidy Application Required to reimburse City for $2,100.00 + $10,500.00 escrow Fee full cost of review Council Approved Abatement Administrative Fee $340.00 Night Time Construction Per Waiver Application $340.00 Activity Waiver Page 12 of x XH. False Alarm Fees False Alarm First two alarms No charge + letter False Alarm Three through ten alarms $100.00 per alarm False Alarm Over ten alarms $300.00 per alarm XIII. Investigation Fees Tobacco, Liquor, Charitable $158.00 Gambling, & Solicitors X,Vil Utility Use Charges Ed Water Per Quarter: Meter Charge 3/4" Meter Size or Smaller $46.48 Meter Charge 1" Meter Size $116.19 Meter Charge 1.5" Meter Size $232.39 Meter Charge 2" Meter Size $371.80 Meter Charge 3" Meter Size $697.15 Meter Charge 4" Meter Size $1,161.93 Meter Charge 6" Meter Size $2,323.86 Meter Charge 8" Meter Size $3,718.17 Meter Charge 10" Meter Size $5,344.87 Meter Charge 12" Meter Size $9,992.58 Consumption: 1-10,000 gals. gallons $3.70per 1,000 gallons (pro- rated) Consumption: 10,001- gallons $4.76 per 1,000 gallons (pro- 35,000 gals. rated) Consumption: Over 35,000 gallons $8.42 per 1,000 gallons (pro - gals. rated) Water Test Fee set by MN State Health Dept $3.81 per quarter Sanitary Sewer Per Quarter: Base Charge — All Users per unit (with the exception of $75.18 mobile homes Usage per gals. —Single gallons $7.75 (per 1,000 gallons) Family/Multiple Family Sanitary Sewer — Commercial gallons $7.75 (per 1,000 gallons) Apartment/Condominium Sanitary Sewer - Mobile Home per unit $195.48 A Winter Averaging minimum will be set using a standard usage of 100 gallons per day based on a 30-day month: 100 gallons x 30 days x 3 months = 9,000 gallons per quarter. For April to December quarterly sewer billings, residential usage will be based on the lesser of actual consumption or 9,000 gallons for those customers that were assigned the minimum amount. Customers that have a Winter Average amount greater than 9,000 gallons will be billed on the lesser of actual consumption or their Winter Average consumption. Customers not connected to City water will be billed on 9,000 gallons each quarter. Surface Water Per Quarter: Residential - Single Family per lot $18.98 Residential — Multiple Family per dwelling $24.62 Apartment / Condominium per acre $155.00 Industrial / Commercial per acre $242.01 Undeveloped per acre N/A Standby Per Quarter: Page 13 of x 1" Service Line or smaller 1 $10.41 Violation of Water or Sewer Use Restrictions: on -essential usage charge $300 per day Page 14 of x Page 15 of x MINNESOTA STATUTES 2025 326B.148 326B.148 SURCHARGE. Subdivision 1. Computation. To defray the costs of administering sections 326B.101 to 326B.194, a surcharge is imposed on all permits issued by municipalities in connection with the construction of or addition or alteration to buildings and equipment or appurtenances after June 30, 1971. The commissioner may use any surplus in surcharge receipts to award grants for code research and development and education. If the fee for the permit issued is fixed in amount the surcharge is equivalent to one-half mill (.0005) of the fee or $1, except that effective July 1, 2010, until June 30, 2015, the permit surcharge is equivalent to one-half mill (.0005) of the fee or $5, whichever amount is greater. For all other permits, the surcharge is as follows: (1) if the valuation of the structure, addition, or alteration is $1,000,000 or less, the surcharge is equivalent to one-half mill (.0005) of the valuation of the structure, addition, or alteration; (2) if the valuation is greater than $1,000,000, the surcharge is $500 plus two -fifths mill (.0004) of the value between $1,000,000 and $2,000,000; (3) if the valuation is greater than $2,000,000, the surcharge is $900 plus three -tenths mill (.0003) of the value between $2,000,000 and $3,000,000; (4) if the valuation is greater than $3,000,000, the surcharge is $1,200 plus one -fifth mill (.0002) of the value between $3,000,000 and $4,000,000; (5) if the valuation is greater than $4,000,000, the surcharge is $1,400 plus one -tenth mill (.0001) of the value between $4,000,000 and $5,000,000; and (6) if the valuation exceeds $5,000,000, the surcharge is $1,500 plus one -twentieth mill (.00005) of the value that exceeds $5,000,000. Subd. 2. Collection and reports. All permit surcharges must be collected by each municipality and a portion of them remitted to the state. Each municipality having a population greater than 20,000 people shall prepare and submit to the commissioner once a month a report of fees and surcharges on fees collected during the previous month but shall retain the greater of two percent or that amount collected up to $25 to apply against the administrative expenses the municipality incurs in collecting the surcharges. All other municipalities shall submit the report and surcharges on fees once a quarter but shall retain the greater of four percent or that amount collected up to $25 to apply against the administrative expenses the municipalities incur in collecting the surcharges. The report, which must be in a form prescribed by the commissioner, must be submitted together with a remittance covering the surcharges collected by the 15th day following the month or quarter in which the surcharges are collected. A municipality that fails to report or submit the required remittance to the department in accordance with this subdivision is subject to the remedies provided by section 326B.082. Subd. 3. Revenue to equal costs. Revenue received from the surcharge imposed in subdivision 1 should approximately equal the cost, including the overhead cost, of administering sections 326B.101 to 326B.194. History: 1984 c 544 s 75; ISp1985 c 13 s 127, 1989 c 303 s 1; 1989 c 335 art 4 s 11; 1991 c 2 art 7 s 5; 1994 c 634 art 2 s 7, 1995 c 254 art 2 s 13; 1997 c 202 art 2 s 26; ISp2001 c 10 art 2 s 31; 2002 c 317 s 2; 2007 c 135 art 2 s 5; 2007 c 140 art 4 s 13,61; art 13 s 4; 2009 c 101 art 2 s 109; 2010 c 215 art 8 s 10; 2010 c 280 s 19,20; 1Sp2011 c4art 3s8; 2012c289s5 Official Publication of the State of Minnesota Revisor of Statutes Page 16 of 23 MINNESOTA STATUTES 2025 326B.153 326B.153 BUILDING PERMIT FEES. Subdivision 1. Building permits. (a) Fees for building permits submitted as required in section 326B.107 include: (1) the fee as set forth in the fee schedule in paragraph (b) or as adopted by a municipality; and (2) the surcharge required by section 326B.148. (b) The total valuation and fee schedule is: (1) $1 to $500, $29.50; (2) $501 to $2,000, $28 for the first $500 plus $3.70 for each additional $100 or fraction thereof, to and including $2,000; (3) $2,001 to $25,000, $83.50 for the first $2,000 plus $16.55 for each additional $1,000 or fraction thereof, to and including $25,000; (4) $25,001 to $50,000, $464.15 for the first $25,000 plus $12 for each additional $1,000 or fraction thereof, to and including $50,000; (5) $50,001 to $100,000, $764.15 for the first $50,000 plus $8.45 for each additional $1,000 or fraction thereof, to and including $100,000; (6) $100,001 to $500,000, $1,186.65 for the first $100,000 plus $6.75 for each additional $1,000 or fraction thereof, to and including $500,000; (7) $500,001 to $1,000,000, $3,886.65 for the first $500,000 plus $5.50 for each additional $1,000 or fraction thereof, to and including $1,000,000; and (8) $1,000,001 and up, $6,636.65 for the first $1,000,000 plus $4.50 for each additional $1,000 or fraction thereof. (c) Other inspections and fees are: (1) inspections outside of normal business hours (minimum charge two hours), $63.25 per hour; (2) reinspection fees, $63.25 per hour; (3) inspections for which no fee is specifically indicated (minimum charge one-half hour), $63.25 per hour; and (4) additional plan review required by changes, additions, or revisions to approved plans (minimum charge one-half hour), $63.25 per hour. (d) If the actual hourly cost to the jurisdiction under paragraph (c) is greater than $63.25, then the greater rate shall be paid. Hourly cost includes supervision, overhead, equipment, hourly wages, and fringe benefits of the employees involved. Subd. 2. Plan review. Fees for the review of building plans, specifications, and related documents submitted as required by section 32613.106 must be paid based on 65 percent of the building permit fee required in subdivision 1. Official Publication of the State of Minnesota Revisor of Statutes Page 17 of 23 326B.153 MINNESOTA STATUTES 2025 Subd. 3. Surcharge. Surcharge fees are required for permits issued on all buildings including public buildings and state licensed facilities as required by section 326B.148. Subd. 4. Distribution. (a) This subdivision establishes the fee distribution between the state and municipalities contracting for plan review and inspection of public buildings and state licensed facilities. (b) If plan review and inspection services are provided by the state building official, all fees for those services must be remitted to the state. (c) If plan review services are provided by the state building official and inspection services are provided by a contracting municipality: (1) the state shall charge 75 percent of the plan review fee required by the state's fee schedule in subdivision 2; and (2) the municipality shall charge 25 percent of the plan review fee required by the municipality's adopted fee schedule, for orientation to the plans, in addition to the permit and other customary fees charged by the municipality. (d) If plan review and inspection services are provided by the contracting municipality, all fees for those services must be remitted to the municipality in accordance with their adopted fee schedule. History: 2009 c 78 art 5 s H; 2017 c 94 art 2 s 5 Official Publication of the State of Minnesota Revisor of Statutes Page 18 of 23 EXHIBIT A RESIDENTIAL ELECTRICAL PERMIT FEES (SINGLE FAMILY HOMES, APARTMENTS, ASSISTED LIVING, and CONDOMINIUMS) Effective 1/1/26 HOMEOWNERS AND CONTRACTORS: Complete an electrical permit form available from the Building Inspections Division. Add $1.00 for State surcharge to total cost of each permit. The fee is the total of the listed fees or the total number of inspection trips x $60.00, whichever is greater. Residential panel replacement is $125.00, sub panel $75.00. New service or power supply is: 0 to 300 Amp $75.00 400 Amp $100.00 Add $25.00 for each additional 100 amps Minimum Fee: Minimum permit fee is $60.00 plus $1.00 State surcharge. This is for one inspection only. Minimum fee for rough -in and final inspection is $120.00 plus $1.00 State surcharge. Apartment Buildings Circuits and Feeders 0-100 Amp $12.00 101-200Amp $20.00 Add $10.00 for each additional 100 amps Dwelling Fees: Fee for single family dwelling or townhouse not over 200 amps is $225 plus $1.00 State surcharge (and up to 25 circuits, additional circuits are $12.00/ea) Maximum of 2 rough-in's and 1 final inspection. (Failed inspections are an additional $60.00/each) Fee per unit of an apartment or condominium complex is $110.00. This does not cover service, unit feeders or house panels, and includes up to 15 circuits per unit. Swimming Pools and Hot Tubs Additions, Remodels or Basement Finishes Residential Accessory Structures Street and Parking Lot Lights Transformers and Generators Retrofit Lighting Low voltage fire alarm, low voltage heating and air conditioning control wiring Residing jobs Re -Inspection Fee in addition to all other fees $120.00 plus circuits at $12.00/each. This includes 2 inspections. $120.00 this include up to 10 circuits and 2 inspections The Greater of $75.00 for panel plus $12.00 per circuit or $120.00 for 2 inspections. $10.00 per each standard $5 up to 10kva, $5511 to 74kva, $70 75kva to 299kva, over 299kva is $175 $1.00 per fixture $1.00 per device $60.00 $60.00 Solar fees: Okw to 5kw = $100 5.1 kw to 10kw = $165 10.1 kw to 20kw = $245 20.1 kw to 30kw = $330 30.1 kw to 40kw = $410 40.1 kw and larger is $410 plus $25 for each additional 10kw Electronic inspection fee for these items only; furnace, air conditioning, bath fan, fireplace, radon, or receptacle for water heater vent is $40. Refunds must be requested in writing. No refunds unless more than the minimum fee. Refunds are minus the cities handling fee. THE PERMIT FEE IS DOUBLED IF THE WORK STARTS BEFORE THE PERMIT IS ISSUED. Minimum fee permits expire in 6 months. Page 19 of 23 Permits over the minimum fee and up to $1,000 expire in 1 year. Commercial Electrical Permit: Effective 1/1/26 $60 per trip or the fees below, whichever is greater — Solar fees are the same as residential solar fees Description Fee Calculation Permit Fee Valuation $1 to $1,000 $60.00 Per trip Valuation $1,001 to $2,000 $60.00 for the first $1,000 plus $3.25 for each additional $100 or fraction thereof, to and including $2,000 Valuation $2,001 to $25,000 $82.00 for the first $2,000 plus $14.85 for each additional $1,000 or fraction thereof, to and including $25,000 Valuation $25,001 to $50,000 $423.55 for the first $25,000 plus $10.70 for each additional $1,000 or fraction thereof, to and including $50,000 Valuation $50,001 to $100,000 $691.05 for the first $50,000 plus $7.45 for each additional $1,000 or fraction thereof, to and including $100,000 Valuation $100,001 to $500,000 $1,063.55 for the first $100,000 plus $6 for each additional $1,000 or fraction thereof, to and including $500,000 Valuation $500,001 to $1,000,000 $3,463.55 for the first $500,000 plus $5.10 for each additional $1,000 or fraction thereof, to and including $1,000,000 Valuation $1,000,001 and up $6,013.55 for the first $1,000,000 plus $4 for each additional $1,000 or fraction thereof Reinspection fee (in addition to all other fees) $60.00 Investigative fee (working without permit) the fee is doubled Refunds issued only for permits over: $120.00 State Surcharge is .0005 times the project value: $ Total Permit Fee Submitted: $ Minimum fee permits expire in 6 months. Permits over the minimum fee and up to $1,000 expire in 12 months from the filing date. A service charge of $35.00 will be added for all dishonored checks. Page 20 of 23 Exhibit B Plumbing Permit Fees for Non-residential or Multi -Family Structures Regulated under the Minnesota State Building Code and Minn. R. 1305. The following permit fee table is based upon the construction valuation of the plumbing system. The cost of plan review is separate, if applicable. Valuation/Project Details Permit Fee $0 to $1,500 $135.00 $1,501 to $2,500 $135.00 for the first $1,500, plus $43 for each additional $500 or fraction thereof, to and including $2,500; $2,501 to $5,000 $221.00 for the first $2,500, plus $28 for each additional $500 or fraction thereof, to and including $5,000; $5,001 to $25,000 $361.00 for the first $5,000, plus $53 for each additional $1,000 or fraction thereof, to and including $25,000; $25,001 to $50,000 $1,421 for the first $25,000, plus $51 for each additional $1,000 or fraction thereof, to and including $50,000; $50,001 to $500,000 $2,696 for the first $50,000, plus $47 for each additional $10,000 or fraction thereof, to and including $500,000; $500,001 to $3,000,000 $4,811 for the first $500,000, plus $61 for each additional $50,000 or fraction thereof, to and including $3,000,000; or $3,000,001 and over $7,861 for the first $3,000,000, plus $51 for each additional $100,000 or fraction thereof; Manufactured home park or $25 for each site, minimum charge of $135 campground Single fixture permit $210.00 Plan Review Fees. The following fees apply when an administrative or technical plan review is completed for all projects that are not otherwise specifically identified within this fee schedule. Plan review is determined by the Designated Building Official or their designee. A permit applicant will be assessed one hundred percent (100%) of the plan review fee, for plan review and processing services, whether or not a permit is issued. (a) Building & Mechanical Permit Plan Review. (1) 65% of the permit fee as calculated in the FMT in Subd. 1. (2) Plan review fees for similar plans are set forth in Minn. R. 1300.0160. (3) Where a plan review fee is performed and charged for residential, the minimum fee for plan review is $81.25. (4) Where a plan review fee is performed and charged for non-residential and multi -family, the minimum fee is $150.00. Page 21 of 23 Last revised: 02-17-2026 1 (b) Plan Revisions. Applicant -submitted changes or incomplete plans for all projects: (1) Review of plans for which the Designated Building Official or their designee has issued two (2) or more requests for additional information: $95 per hour with a minimum of one-half (1/2) hour. (2) Additional plan review required for changes, additions, or revisions to previously approved plans: $95 per hour with a minimum of one-half (1/2) hour. (3) Applicant -requested revision with an increase in project scope, $50 plus the difference between the original project fee and the revised project fee. (c) Abandoned Permit Applications. If an application requiring plan review is submitted, and the applicant elects not to proceed following completion of the plan review or the Contractor deems the application abandoned pursuant to Minn. R. 1300.0120, Subp. 9, plan review services rendered shall be billed in accordance with this fee schedule. (d) Non -Residential or Multi -Family Plumbing and Fire Construction Permit Plan Review: the following table establishes plan review and audit fees, unless otherwise indicated. These fees are based on the construction valuation of the performed work. This does not include the cost of the permit. Valuation/Project Details MI Plan Review Fee $0 to $1,500 $135.00 $1,501 to $2,500 $135.00 for the first $1,500, plus $28 for each additional $500 or fraction thereof, to and including $2,500; $2,501 to $5,000 $191.00 for the first $2,500, plus $25 for each additional $500 or fraction thereof, to and including $5,000; $5,001 to $25,000 $316.00 for the first $5,000, plus $33 for each additional $1,000 or fraction thereof, to and including $25,000; $25,001 to $50,000 $976 for the first $25,000, plus $31 for each additional $1,000 or fraction thereof, to and including $50,000; $50,001 to $500,000 $1,751 for the first $50,000, plus $23 for each additional $10,000 or fraction thereof, to and including $500,000; $500,001 to $3,000,000 $2,786 for the first $500,000, plus $41 for each additional $100,000 or fraction thereof, to and including $3,000,000; and $3,000,001 and over $3,811 for the first $3,000,000, plus $33 for each additional $100,000 or fraction thereof; One to 25 sites: $300 Manufactured home park or campground 26 to 50 sites: $350 (plumbing only) 51 to 125 sites: $400 More than 125 sites: $500 State Surcharge. In accordance with Minn. Stat. § 326B.148, a state surcharge shall be charged on all permits, if applicable. Page 22 of 23 Last revised: 02-17-2026 Refunds. The Designated Building Official may authorize refunds of up to eighty percent (80%) of the issued permit fee when no work has commenced and no inspections have been performed. (a) Requests must be submitted in writing by the permit applicant within one hundred eighty (180) days of permit issuance. (1) Within (10) business days of receipt, the Designated Building Official or their designee shall review the request and determine the amount to be refunded or provide written justification if the request is denied. (b) Fees retained shall cover expenses incurred for services rendered by the city and/or its consultant(s). (c) Refunds shall only be issued to the original payee. (d) No refunds shall be granted for the following: (1) Plan review fees; (2) Re -inspection fees; (3) State surcharge fees; (4) Fraudulent applications; (5) Expired, revoked, suspended, or invalid permits; (6) Technology fee, unless canceled within the same business day; or (7) Contractor license verification. Last revised: 02-17-2026 3 Page 23 of 23 Attachment B CITY OF ARDEN HILLS COUNTY OF RAMSEY STATE OF MINNESOTA SUMMARY OF ORDINANCE NO.2026-010 On the Bch day of June 2026, the Arden Hills City Council adopted Appendix A of Ordinance No. 2026-010, and by five affirmative votes pursuant to Minn. Stat. §412.191, Subd. 4, directed that a summary of Appendix A of Ordinance 2026-010 be published. Appendix A of Ordinance 2026-010 entitled "Amended 2026 Fee Schedule" an Ordinance Relating to Fees Payable within the City of Arden Hills for 2026. The primary purpose of the ordinance is to update the Municipal Code to reflect fees for the calendar year of 2026. A full copy of Appendix A of Ordinance 2026-010 is available for inspection by any person during regular business hours at the office of the City Administrator, 1245 West Highway 96, Arden Hills, Minnesota 55112. The Ordinance is also available online at hqp://www.cityofardenhills.com Passed and adopted this 8th day of June 2026, by the City Council of the City of Arden Hills, Minnesota. David Grant, Mayor Attest: Julie Hanson, City Clerk Published in the Pioneer Press on June , 2026 CONSENT ITEM - 8E MEMORANDUM DATE: June 8, 2026 TO: Honorable Mayor and City Councilmembers Jessica Jagoe, City Administrator FROM: David Swearingen, P.E. Public Works Director / City Engineer SUBJECT: Lexington Avenue Reconstruction Project — Declaring Costs to be Assessed and Order Assessment Hearing for the Lexington Ave. and Target Rd. Traffic Signal System Improvements Budgeted Amount: Actual Amount: Funding Source: $198,916.75 $164,370 Special Assessments (Pre -construction estimate) Council Should Consider Motions to approve, table, or deny the following: Resolution 2026-028 Declaring Costs to be Assessed and Ordering the Preparation of the Proposed Assessments and Calling for a Public Hearing on the Proposed Assessments for the Lexington Avenue and Target Rd Traffic Signal System Improvements. Back2round/Discussion The 2013 Master Planned Unit Development (PUD) agreement, for the Lexington Station commercial site includes access and cost participation requirements related to the proposed Target Road traffic signal. The master PUD agreement states that full development of the Lexington Station commercial property will include a new access driveway aligned with Target Road to replace the current access point along Lexington Avenue. The new access is required to include the proposed traffic signal at Target Road based on a completed traffic study. The master PUD agreement further requires the developer of the Lexington Station site to pay for or accept an assessment against the project property for the cost of the access improvements, including the traffic signal. Page l of 2 On August 9, 2021, City Council approved Resolution 2021-044, receiving the feasibility report for the potential traffic signal system as part of the Lexington Avenue Reconstruction Project and ordering the Improvement Public Hearing. The feasibility report was prepared for the Cities of Shoreview and Arden Hills to document proposed improvements, project costs, funding, and assessments for a new traffic signal system installed as part of the Ramsey County Lexington Avenue Reconstruction Project. The full feasibility report is on file and can be reviewed upon request to City staff. On August 23, 2021, the City Council conducted an Improvement Public Hearing for the proposed Lexington Avenue and Target Rd Traffic Signal System project in accordance with City Council Resolution 2021-044. Following the Improvement Public Hearing on August 23, 2021, the City Council approved Resolution 2021-047 ordering improvement and preparation of plans & specifications for the Lexington Avenue and Target Road traffic signal system improvements. The traffic signal improvements were constructed as part of Ramsey County's Lexington Avenue Reconstruction project. On January 12, 2026, the City approved the final payment to Ramsey County for its portion of the project costs. With final values determined for the traffic signal, the actual construction costs of $164,369.52 are proposed to be assessed to the benefitting properties. Within the feasibility report, it outlines two scenarios for benefiting properties. The final as - constructed design is applicable to Scenario 2, where the three properties Parcel ID 27-30-23-41- 0022, 27-30-23-41-0023, and 27-30-23-41-0024 are the benefitting properties; therefore, the assessment roll was created accordingly. Many cities set their interest rate for assessments at two (2) percentage points over the bond interest rate. The City's assessment policy states that the interest rate used for the assessment shall be designated at the prime rate plus two (2) percentage points. The interest rate related to the 2026 PMP Street & Utility Improvement project was set at 5.7%. The Finance Director recommends the same interest rate be applied to the Lexington Ave. and Target Rd. Traffic Signal System Improvements. Attachment B, Resolution 2026-028 declares the costs to be assessed and orders the Assessment Hearing, which would be held on July 13, 2026, at the Regular City Council meeting. Budget Impact All costs for this improvement are assessed to the benefitting properties as outlined above. Attachments Attachment A: As -constructed Assessment Roll Attachment B: Resolution 2026-028 Page 2 of 2 I 0 v 000� £o��mM Q N N N N n (p tp W M N N � O O O O J v z z O o 2 2 O a Y Y m v3gY 0 O W W M LULULU LNW >>� 0 o W < o in in o � U J J = J U C O J 3 _ J o a a o r y N y o O O J J_ it F F = z z w J J Q J J J z z z W W W ❑ ❑ ❑ a a c 0 0 0 a z z z O o O F- F- F- uses Q Q Q v J z s z m m m 0 00 0 0 0 Y Y Y O O O 00 0] 00 e-I N m O O O N m V Ol E O O O 3 a v a Z N N N u m m m S N N N z z z v < < < c c c Q O o 0 m m on o0 on a v m ono m `w n E N m z' '2t HILLS CITY OF ARDEN HILLS COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION NO.2026-028 Attachment B RESOLUTION DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENTS AND CALLING FOR HEARING ON THE PROPOSED ASSESSMENTS WHEREAS, the construction of the Lexington Avenue and Target Road Traffic Signal System Improvements has been completed as part of the Lexington Avenue Reconstruction project and the contract bid price for such improvement is $149,427, and the expenses incurred or to be incurred in the making of such improvement amount to $14,943 so that the total cost of the improvement will be $164,370; and WHEREAS, the City Clerk has prepared a proposed assessment of the cost of the improvement; and WHEREAS, the City Clerk has notified the City Council that such proposed assessment has been completed and filed at City Hall for public inspection. NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF ARDEN HILLS: 1. The portion of the cost to be assessed against benefited property owners is declared to be $164,370. 2. Assessments shall be payable in equal annual installments extending over a period of 10 years, the first of the installments to be payable with property taxes for the year 2027, and shall bear an interest rate to be determine from date of the adoption of the assessment resolution. 3. The City Clerk, with the assistance of the City Engineer shall forthwith calculate the proper amount to be specially assessed for such improvement against every assessable lot, piece or parcel of land within the district affected, without regard to cash valuation, as provided by law, and shall file a copy of such proposed assessment in her office for public inspection; and BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF ARDEN HILLS, MINNESOTA: Page 1 of 2 To view the final document, access adopted Resolutions via Arden Hills Public Laserfiche Weblink by visiting cityofardenhills.org and clicking on Archived Documents under Helpful Links on our main webpage. 1. A hearing shall be held on July 13, 2026, in the Council Chambers at 7:00 p.m. or as soon thereafter as possible, to pass upon such proposed assessment and at such time and place all persons owning property affected by such improvement will be given an opportunity to be heard with reference to such assessment. 2. Publication by the City Clerk is hereby directed to cause notice of the hearing on the proposed assessment once in the official newspaper at least two weeks prior to the hearing, stating in the notice the total cost of the improvement is hereby approved. Notice shall be mailed to the owner of each parcel described in the assessment roll not less than two weeks prior to the hearings is also approved. 3. The owner of any property so assessed may, at any time prior to certification of the assessment to the County Auditor, pay the whole of the assessment on such property, with interest accrued to the date of payment, to the City, except that no interest shall be charged if the entire assessment is paid within 30 days from the adoption of the assessment. The owner may at any time thereafter, pay to the City the entire amount of the assessment remaining unpaid, with interest accrued to December 31 of the year in which such payment is made. Such payment must be made before November 15 or interest will be charged through December 31 of the succeeding year. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS THIS 8th DAY OF JUNE 2026. Attest: Julie Hanson, City Clerk David Grant, Mayor Page 2 of 2 To view the final document, access adopted Resolutions via Arden Hills Public Laserfiche Weblink by visiting cityofardenhills.org and clicking on Archived Documents under Helpful Links on our main webpage. CONSENT ITEM - 8F MEMORANDUM DATE: June 8, 2026 TO: Honorable Mayor and City Councilmembers FROM: Jessica Jagoe, City Administrator SUBJECT: Professional Services Agreement with Gayle Bauman Budgeted Amount: Actual Amount: Funding Source: N/A TBD Various Funds Council Should Consider Motions to approve, table, or deny the following: • Approval of the Professional Services Agreement with Gayle Bauman for accounting and financial consulting services. Background Given the Finance Director vacancy, the City will need assistance with the ongoing technical accounting functions of this position, including the preparation of financial documents and budget planning. Included with this memo is a draft professional services agreement to be considered by the City Council (Attachment A) for interim accounting and financial consulting services with Gayle Bauman. The City Attorney has reviewed the agreement and has no concerns as drafted. The Personnel Committee is recommending approval of this agreement. Budget Impact The exact budget impact is unknown but will be more than offset by the vacancy of the Finance Director. Attachments Attachment A: Professional Services Agreement with Gayle Bauman Page 1 of 1 Attachment A City of Arden Hills, Minnesota Professional Services Agreement This PROFESSIONAL SERVICES AGREEMENT ("Agreement") made this _ day of , 2026, by and between the City of Arden Hills, a Minnesota municipal corporation, 1245 W Highway 96, Arden Hills, Minnesota 55112 (the City), and Gayle Bauman (address on file with the City) (Bauman). The parties agree as follows: 1. SCOPE OF WORK. The City desires to enter into this Agreement with Bauman for accounting and financial consulting services ("service" or "services") related to the City. Bauman shall perform up to 15 hours of service for initial due diligence and review of financial records. Additionally, Bauman shall perform service for up to 2 days per week and attend City Council meetings for presentation of financial documents for budget purposes as requested and directed by the City Administrator. The City Administrator shall be the primary contact for Bauman. 2. PAYMENT FOR SERVICES. The City shall pay Bauman at the rate of $100.00 per hour. The minimum billing increment shall be fifteen minutes or .25 of an hour. Bauman shall submit a weekly summary of hours worked, and tasks performed. The City shall pay Bauman on a biweekly basis, concurrent with the City payroll schedule. Bauman is responsible for filing or submitting any necessary paperwork, taxes, or other required information. 3. EQUIPMENT/IT NEEDS. The City shall make available any necessary equipment, software applications, or other item necessary for Bauman to provide services, this shall include but is not limited to a temporary laptop, software applications (Word, PowerPoint, Excel), access to applicable network information and shared drives, as needed to complete projects referenced above. 3. STANDARD OF CARE. In performing her services, Bauman will use that degree of care and skill ordinarily exercised, under similar circumstances, by reputable members of her profession in the same locality at the time services are provided. No warranty, express or implied, is made or intended by Bauman's undertaking herein or her performance of services. 4. TERMINATION; TERM. Either the City or Bauman may terminate this Agreement at any time by providing a written notice to the other party to the address in the introductory paragraph. The City shall make any payment to Bauman for services provided and not yet paid within fifteen (15) days of termination of the Agreement. This Agreement shall be effective on the date of the last signature. Unless terminated or otherwise mutually agreed upon, this Agreement shall terminate on December 31", 2026. 5. INDEPENDENT CONTRACTOR STATUS. All services provided by Bauman pursuant to this Agreement shall be provided as an independent contractor and not as an employee of the City for any purpose. Bauman is an independent contractor, providing the services, and is 1 responsible for means and methods used in performing the services pursuant to this Agreement. 6. MISCELLANEOUS PROVISIONS a. Assi ng ment. This Agreement is not assignable without the written consent of the City. b. Data Practices Compliance. All data collected, created, received, stored, used, maintained, or disseminated by Bauman pursuant to this Agreement shall be subject to the Minnesota Government Data Practices Act, Minnesota Statutes, Chapter 13. c. Waiver. In the particular event that either party shall at any time or times waive breach of this Agreement by the other, such waiver shall not constitute a waiver of any other or any succeeding breach of this Agreement by either party, whether of the same or any other covenant, condition or obligation. d. Entire Agreement. This Agreement represents the entire agreement of the parties and is final, complete, and all-inclusive statement of the terms agreed upon, and supersedes and terminates any prior agreement(s), understanding(s), or written or verbal representation(s) made between the parties. This Agreement may be amended in writing by the parties. IN WITNESS WHEREOF, the City Council has caused this Agreement to be signed and executed on its behalf by its Mayor, and Gayle Bauman has signed this Agreement, in duplicate, the day and year first written above. CITY OF ARDEN HILLS GAYLE BAUMAN BY: Its Mayor ATTEST: Julie Hanson, City Clerk PA CONSENT ITEM - 8G MEMORANDUM DATE: June 8, 2026 TO: Honorable Mayor and City Councilmembers FROM: Jessica Jagoe, City Administrator SUBJECT: Authorization to Recruit for a Parks and Recreation Manager Budgeted Amount: Actual Amount: Funding Source: $146,329 TBD General Fund — Recreation & Parks (Salary & Benefits) Council Should Consider Motions to approve, table, or deny the following: • Recruitment for a Parks and Recreation Manager Background The City has an open Parks and Recreation Manager position following the resignation of the incumbent. This authorization will allow Staff to begin the recruitment process, which is outlined below. Anticipated process: • Council approves authorization to begin the recruitment process • Staff posts for the position • Staff reviews applications and selects interview candidates and selects a finalist • Staff will bring forward a finalist for official Council approval Councilmembers have previously expressed an interest in being part of the interview panel for certain positions at City Hall; currently no Councilmembers are slated to be on the interview panel for this position. Should Council want to designate Councilmembers to attend they should do so with this authorization (it would need to be pulled from consent and approved). Page 1 of 2 Budget Impact This position is an existing position and already budgeted for; this should not have an impact on the City's budget. Attachments Attachment A — Parks and Recreation Manager Job Description Page 2 of 2 Attachment A -tZ D�EN,HILLS CITY OF ARDEN HILLS POSITION DESCRIPTION Position Title: Parks & Recreation Manager Department: Public Works Accountable to: Assistant Public Works Director Positions Supervised: Recreation Supervisor and Seasonal Recreation Staff Status: Full Time January 2025 PRIMARY OBJECTIVES Performs difficult technical work planning, implementing, supervising and evaluating City-wide Parks & Recreation programs, and related duties as apparent or assigned. Work is performed under the limited supervision of the Assistant Public Works Director. Continuous supervision is exercised over the Recreation Supervisor, assigned programming and with limited supervision over seasonal positions. QUALIFICATION REQUIREMENTS To perform this job successfully, an individual must be able to perform each essential function satisfactorily. The requirements listed below are representative of the knowledge, skill, and/or ability required. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions. ESSENTIAL FUNCTIONS OF THE POSITION Oversees the Recreation Supervisor to organize, plan and implement all recreation programs including after school programs, special events, youth programs including but not limited to baseball, t-ball, softball, soccer leagues, ice skating programs, summer playgrounds, tennis, summer camps, sport skills classes, and adult programs. Reviews and recommends fee structure and fee schedule for recreation programs based on instructor costs, material costs, facility fees, and cost recovery policies. Responsible for short and long term issues relating to parks and recreational areas and facilities, including parks uses, City ordinances, policies, acquisition, development of facilities and trails; and recreation program needs. Coordinates with the Public Works Director, Assistant Public Works Director and Public Works Superintendent in managing the maintenance and operations program for City parks. Assists the Public Works Director with managing park planning, park development, asset management and capital improvement projects for parks and recreation. Prepares & recommends the annual Parks & Recreation Department operating budget to the Public Works Director. Prepares & recommends the Parks Department 5-year Capital Improvement Plan (CIP) to the Public Works Director. Develops and maintains a 10-year capital project outlook as it relates to Parks & Recreation. Develops, utilizes and maintains Parks Improvement planning materials such as a Parks Master Plan. Evaluates the condition of City parks, playground equipment, amenities and trails. Assists the Public Works Director with reviewing, recommending, and managing park maintenance expenditures Manages City forestry activities with the Public Works Superintendent, including tree inventory, inspections, maintenance, diseased tree control and abatements. Recommends updated policies and ordinances related to City forestry as necessary. Responsible for Natural Resources Management as it relates to City Open Space, rain garden program, water resources (Ponds, Lakes, Wetlands, etc.), invasive species control, ecological restoration and preservation projects, and MS4 Permit where applicable. Seeks out grant opportunities to help fund objectives and coordinate with the Public Works Director on grant applications. Collaborates with private businesses and other cities for community planning. Oversees prepared information for instructors, class lists, emergency procedures and building use policies. Oversees the preparation of scheduled activities on fields/parks for maintenance, special equipment or set up. Leads public engagement efforts for Parks & Recreation such as open -house events, surveys, promotional events, etc. Responsible for developing and recommending new Parks & Recreation programs for future community needs. Responsible for updating City Parks related maps, inventories, signage, brochures, registration information, webpage content and general department information. Provides information to the Senior Communications Coordinator, Parks, Trails and Recreation Committee and the public. Coordinates volunteer groups and donation program for Parks and Recreation programs. Attends and presents to City Council and other meetings as appropriate or as directed. Serves as staff liaison to the PTRC. Coordinates with community leaders and groups on parks and recreation programs. Keeps the Public Works Director informed of any issues and concerns in the department. Performs other duties as apparent or assigned. EDUCATION and/or EXPERIENCE Bachelor's degree with coursework in parks management, recreation, or related field and considerable experience in youth/adult recreational activities, parks and trails development and maintenance, or equivalent combination of education and experience. KNOWLEDGE, SKILLS AND ABILITIES Thorough knowledge of the principles, practices, equipment, tools and materials used in park maintenance and construction; thorough knowledge of general building, equipment, repair and maintenance; thorough knowledge of forestry, landscaping, and horticulture as applied to parks and grounds areas; thorough knowledge of the grasses, flowers, shrubs and trees grown in the area, their planting time and their soil requirements; thorough knowledge of hazards and necessary safety precautions involved in construction work; 2 ability to plan and supervise the work of subordinates; ability to prepare reports; ability to prepare reports and maintain records; ability to establish and maintain effective working relationships with others. PHYSICAL DEMANDS This work requires the frequent exertion of up to 10 pounds of force and occasional exertion of up to 50 pounds of force; work regularly requires sitting, frequently requires standing, walking, speaking or hearing, using hands to finger, handle or feel, reaching with hands and arms, lifting and repetitive motions and occasionally requires stooping, kneeling, crouching or crawling and pushing or pulling; work requires close vision, distance vision, ability to adjust focus, depth perception, color perception and peripheral vision; vocal communication is required for expressing or exchanging ideas by means of the spoken word and conveying detailed or important instructions to others accurately, loudly or quickly; hearing is required to perceive information at normal spoken word levels and to receive detailed information through oral communications and/or to make fine distinctions in sound; work requires preparing and analyzing written or computer data, visual inspection involving small defects and/or small parts, using of measuring devices, operating machines, operating motor vehicles or equipment and observing general surroundings and activities; work frequently requires exposure to outdoor weather conditions and occasionally requires wet, humid conditions (non - weather), working near moving mechanical parts, exposure to fumes or airborne particles, exposure to toxic or caustic chemicals and exposure to blood -borne pathogens and may be required to wear specialized personal protective equipment; work is generally in a moderately noisy location (e.g. business office, light traffic). SPECIAL REQUIREMENTS CPR/First Aid Certification. Valid Minnesota Class D Driver's License. Tree Inspection Certification preferred. SELECTION GUIDELINES Formal application, rating of education and experience; oral interview and reference check; job related tests may be required. The duties listed above are intended only as illustrations of the various types of work that may be performed. The omission of specific statements of duties does not exclude them from the position if the work is similar, related or a logical assignment to the position. CITY OF ARDEN HILLS IS AN EQUAL OPPORTUNITY EMPLOYER NON-DISCRIMINATION POLICY The City of Arden Hills does not discriminate on the basis of handicapped status in the admission or access to or treatment or employment in its programs and activities. 3 CONSENT ITEM - 8H r -ARPEN HILLS MEMORANDUM DATE: June 8, 2026 TO: Honorable Mayor and City Councilmembers Jessica Jagoe, City Administrator FROM: David Swearingen, P.E. Public Works Director / City Engineer Lucas Miller, Assistant Public Works Director SUBJECT: 2027 Park Improvement Project (Perry Park, Ingerson Park, and Sampson Park) — Professional Services Agreement Budgeted Amount: Actual Amount: Funding Source: $ 545,000 — Perry Park $TBD PIR — Parks $ 360,000 — Ingerson Park $ 315,000 — Sampson Park Council Should Consider Motions to approve, table, or deny the following: • Professional Services Agreement with Bolton and Menk Inc. in the amount not -to - exceed $188,825 for the 2027 Park Improvement Project. Backaround/Discussion At the March 9, 2026 Work Session, Staff presented to City Council an introduction to the proposed 2027 Park Improvement Project which includes Perry Park, Ingerson Park, and Sampson Park. In the 2026-2030 CIP, Perry Park, Ingerson Park, and Sampson Park are scheduled for improvements in 2027. Sampson Park and Ingerson Park play structures and swings were built in 2001 and 2000, respectively. Under the City's Park Maintenance Management Plan, park equipment is replaced on a 20-year cycle. Page 1 of 2 Ingerson Park is scheduled to receive a new trail connection between Fernwood Ct and Lake Ln. The Park Maintenance Management Plan states that hard courts should be resurfaced every 5-8 years, with a 25-35 year life expectancy depending on conditions. Sampson Park's basketball court is scheduled for resurfacing in 2027 and is showing signs of needed rehabilitation. The Perry Park parking lot is deteriorating and at the end of its service life. Public Works has installed large patches to extend usability, and maintenance costs continue to rise. Grading and irrigation issues have led to water pooling in the dog park and on ballfields. As a Level 1 Park, Perry experiences heavy summer use. The Parks Maintenance Plan prioritizes Level 1 facilities, including parking lots, to maintain a well -kept appearance. Staff recommends approving the Professional Services Agreement with Bolton & Menk in the amount not -to -exceed $188,825, which includes tasks for project management, topographic survey, geotechnical services, design, bidding assistance, and Met Council grant assistance. Construction services will be determined at a later time once those needs are better understood through design. Budget Impact The proposed 2027 Park Improvement Project is budgeted for the replacement of the Sampson and Ingerson play structures, rehabilitation of the Sampson hard court, rehabilitation of the Perry parking lot, and ballfield, grading, irrigation, and fencing improvements at Perry Park. The failing retaining wall at Perry Park was discovered recently and was not included in the current 2026-2030 CIP budget. This will likely increase the budget needs, and an estimate will be determined through the design process. Budget changes in consideration of the recently adopted Park System Plan will be reviewed by the City Council during the 2027-2031 CIP discussions. The project funding is provided below: Perry Park budget Parking lot rehab: $ 485,000 Grading, irrigation, fencing: $ 60,000 Total Budget: $ 545,000 Sampson Park budget Basketball Court: $ 55,000 Play structure: $ 260,000 Total Budget: $ 315,000 Attachments Attachment A — Bolton & Menk PSA Ingerson Park budget Trail connections: $ 100,000 Play structure: $ 260,000 Total Budget: $ 360,000 Funding Source Perry Park: $ 545,000 — PIR Parks Ingerson Park: $ 360,000 — PIR Parks Sampson Park: $ 315,000 — PIR Parks Total funding: $1,220,000 — PIR Parks Page 2 of 2 O & ENK Real People. Real Solutions. EXHIBIT A BASIC SERVICES 2027 Park Improvements City of Arden Hills, MN Attachment A Suite 650 Minneapolis, MN 55401 Phone: (612) 416-0220 Bolton-Menk.com INTRODUCTION Bolton & Menk (Consultant) agrees to provide professional services required for design and bidding for Capital Improvement Plan (CIP) improvements at Perry Park, Sampson Park and Ingerson Park. The approximate areas of improvements are illustrated in the following exhibits for each park. Perry Park Survey Extents and Project Description Bolton & Menk is an eaual 0000rtunitv ern Sampson Park Survey Extents and Project Description Ingerson Park Survey Extents and Project Description 2 Bolton & Menk is an eaual 0000rtunity ern PROJECT UNDERSTANDING The proposed improvements from which this scope of services is established include the following: Perry Park • Parking Lot Rehabilitation o Full -depth reclamation 0 2D and 3D improvements to address grade/surface inconsistencies ■ ADA ramps to be completed in field o Spot curb repairs/patching o Subgrade soil corrections o Island tree planting o Dumpster pads and enclosure fencing o Address drainage/pavement issue at New Brighton Road connection • Dog Park/Ballfield Improvements o Address grading and drainage issues (eliminate ponding) on 2 of 4 fields o Fencing replacement as need to repair damaged fencing o Irrigation system inventory and adjustment to ensure better coverage • Retaining Wall Reconstruction o Address failing retaining wall at east end of ballfield, near multi -use trail Sampson Park • Half Basketball Court o Court replacement o Hoop replacement • Playground o Playground replacement o New equipment, surfacing (EWF), and concrete ribbon curb o New bench Ingerson Park • Playground o Playground replacement o New equipment, surfacing (EWF), and concrete ribbon curb o New bench • Trail Connection o Create paved trail (8' bituminous) from Fernwood Court to Lake Lane ■ May require additional easement, City to confirm prior to proceeding with this work. SCOPE OF SERVICES The Work will include kickoff and coordination meetings, topographic survey, coordination of geotechnical engineering services, schematic and final design, construction documentation, and bidding assistance. Specific project tasks and deliverables to be provided by Consultant are described in detail in 3 Bolton & Monk is an eoual 0000rtunity ern the following scope of services. TASK 1: PROJECT MANAGEMENT & COORDINATION Task Overview: The project manager for the Consultant will be responsible for overall coordination and communication with the project team, including City staff, community stakeholders, technical team, permitting agencies, and others. In addition, the project manager will work with the team to ensure that project deliverables are complete within the agreed upon timeframe, guide design development, and provide senior review of project deliverables. This task assumes one (1) kickoff meeting with city staff, up to eight (8) regularly scheduled (virtual) check -in meetings with the project team, presentation at two (2) Parks trail and Recreation Committee (PTRC) meetings and presentation at one (1) City Council Work Session to review project direction and progress. Deliverables: - Meeting minutes and agendas - Powerpoint presentation(s) - Project schedule - Review of previously completed geotechnical report for Perry Park parking lot TASK 2: TOPOGRAPHIC & BOUNDARY SURVEY Task Overview: This task will include the creation of a base map identifying above and below ground existing features in electronic format. The base map will be utilized as the basis and background for design. The survey will gather pertinent field information on existing infrastructure, property boundaries, public utilities, ground contours, surfaces, and private small utilities within the survey limits. Additionally, the Consultant will contact utility owners of record or the "one call" representative, request that buried utilities be marked in the field and obtain existing utility map, establish coordinates and elevations (if possible) for utilities that fall within the limits of the project and are visible or have been marked on the ground by the utility owner, and show utility name and describe the utility on the plans. Utilities to be surveyed include phone, gas, fiber optic, water main, overhead/underground electrical, sanitary sewer, and storm sewer (including power poles, pedestals, valves, and manholes). Deliverables: - Electronic topographic & boundary survey data (Civil3D format) TASK 3: GEOTECHNICAL ENGINEERING SERVICES Task Overview: Consultant will coordinate geotechnical engineering services with a third -party subconsultant. Services provided by the Geotechnical Engineer will include: • Sampson Park — Pavement Coring and Hand Auger Borings o Two pavement cores at basketball court to 4'-5' depth • Ingerson Park Trail — Hand Auger Borings o Three hand auger borings to 6'-8' depth • Borehole Abandonment o Backfilling of auger holes and re -patching of pavement cores • Sample Review and Laboratory Testing • Engineering Analysis 4 Bolton & Monk is an eoual 0000rtunity ern • Reporting Deliverables: - Location staking - Field work - Preliminary results - Draft and final report submittals TASK 4: PRELIMINARY DESIGN Task Overview: Based upon survey and other field data, along with programming objectives from the City, the Consultant will prepare one schematic layout design for site amenities for each park. Consultant assumes one round of revisions to the proposed concept plan as part of the preliminary design phase. A preliminary plan set (30% design) will then be developed to provide the preliminary layout, conceptual grading, and construction details, along with estimated costs for the first phase of implementation. A preliminary Opinion of Probable Costs (OPC) will be developed to confirm the proposed improvements align with the city's budget and to confirm bidding strategy. This plan submittal will consist of a 30% plan set and will include the following: • Site layout plan • Schematic site grading • Removals plan • Materials/product palette o Typical cross sections o Playground amenities o Retaining wall material and cross section Deliverables: - Preliminary plan set (30%) - Preliminary Opinion of Probable Costs (OPC) TASK 5: PLAYGROUND SELECTION PROCESS (BEST VALUE APPROACH) Task Overview: The Consultant will facilitate the playground selection/procurement process for both Sampson Park and Ingerson Park by soliciting an RFP to up to four (4) playground equipment vendors. The Consultant will establish a budget and list of base amenities, type of features and general layout/area for vendors to use as the basis of design direction. Each vendor will submit one proposed design. RFP responses will then be used at an open house to gain input from community members. The Consultant will develop open -house materials and facilitate the event in coordination with city staff. Playground proposals will be evaluated based on a combination of play value, overall design, material quality, schedule/availability and cost. Upon internal review, Consultant evaluation and feedback from community members, the Consultant will then make a recommendation for selection of the proposed design, which will be presented to the PTRC and City Council. Deliverables: - Preparation of Playground RFP and distribution to playground equipment vendors Bolton & Monk is an eoual 0000rtunity ern - Preparation of open house materials and facilitation of open house event - Compiling feedback and preparation of playground selection summary - Presentation to PTRC and City Council TASK 6: FINAL DESIGN Task Overview: Based upon review and approval of the Preliminary Plan Set completed in Task 4 and consideration of any feedback from City staff, the Consultant will move forward with preparation of final construction documents. Consultant assumes that two (2) bid packages will be produced for the project, due to the nature of the proposed improvements. Below is a description of the anticipated work to be included in each bid package, this is subject to change based on coordination with City staff. Bid Package One • Perry Park parking lot improvements • Sampson Park basketball court • Ingerson Park trail • Perry Park dog park/ballfield grading and restoration, fencing and irrigation repairs • Perry Park retaining wall repairs/reconstruction Bid Package Two: • Sampson Park and Ingerson Park playgrounds, benches/site amenities o Consultant assumes the playground improvements will be procured through purchasing cooperative, including playground equipment and surfacing Progress documents (60% and 90% plans) will be provided to the Client for review and approval as the Consultant proceeds with final plans. Updates to the OPC will be provided at each milestone submittal. The Consultant will prepare the project manual for the 90% and 100% submittals. Specifically, the final plans are expected to include the following: • Title and General Information Sheets • Existing Conditions & Removals • Erosion Control & Restoration • Surface & Utility Improvements • Layout & Dimensioning • Grading Plan • Construction Details • Landscaping Consultant will prepare a project manual for the project utilizing City of Arden Hills typical front-end specifications (Div 0 and Div 1) and Bolton & Menk technical specifications (Div 2). Consultant will ensure conformance with city standards per the city's Engineering Design Manual. Deliverables: • 60%, 90% and 100% Plan Submittals • Engineer's Estimate • Project Manual N. Bolton & Monk is an eoual 0000rtunity ern TASK 7: BIDDING ASSISTANCE Task Overview: Consultant will coordinate and manage the competitive bidding process for the project. Consultant will provide the following: • Printing of Plans and Specifications This task consists of printing and handling of the Plans and Specifications. For budget purposes it is estimated that ten (10) half -sized (11"x17") plan sets and specifications will be duplicated and assembled by the Consultant. This task also includes the dissemination of the contract documents and maintaining a plan holders list during the bidding phase. • Advertisement/Notice of Project The Consultant shall prepare the formal Notice of Hearing and Letting. The Consultant shall also prepare and disseminate an informal notice to contractors concerning the project. • Plan Clarification and Addenda The Consultant shall be available to answer questions from contractors prior to bidding and shall issue addenda as appropriate to interpret, clarify, or expend the bidding documents. • Bid Opening, Bid Tabulations, and Award Recommendation: The Consultant facilitate an online bid opening for the project(s), shall make tabulations of the bid for the Client and shall advise the Client on the responsiveness of the bidders. • Contract Documents: The Consultant shall prepare the required contract documents, with the assistance of the Client's attorney and staff, after award of the contract. Deliverables: • Advertisement of bidding process • Bidding Addenda • Bid Tabulation • Letter of Award Recommendation TASK 8: MET COUNCIL WATER EFFICIENCY GRANT PROGRAM Task Overview: Consultant will prepare an application to the Metropolitan Council Water Efficiency Grant Program for updating and/or replacement of dated and/or inefficient irrigation equipment at Perry Park. Grant writing and administration services include: • Completion of irrigation audit for Perry Park o Will not be completed by certified Irrigation Professional • Preparation of grant application and submission to Met Council • Administration of funding award EXCLUSIONS/ADDITIONAL SERVICES Bolton & Monk is an eoual 0000rtunity ern Consulting services performed other than those authorized under Tasks 1-8 shall not be considered part of the Basic Services and may be authorized by the City as Additional Services. Additional Services consist of those services, which are not generally considered to be Basic Services; or exceed the requirements of the Basic Services; or are not definable prior to the commencement of the project. Excluded services: + Retracement survey, boundary line adjustments and easements + Geotechnical services (beyond those described herein) + Stormwater calculations and management design; assumes existing stormwater facilities are adequate to treat Stormwater runoff created by this project + Architectural design of structures + Structural engineering (beyond those described herein pertaining to the retaining wall at Perry Park) + Construction services/administration + Construction staking + Additional tasks, revisions, and meetings beyond tasks 1-8 It is anticipated that Construction Administration services shall be requested and the Consultant will provide an estimated hourly fee to provide these services once the bidding process has been completed. PROPOSED SCHEDULE The project team can start immediately after approval with the proposed anticipated schedule as follows: roved Contract Task 1: Project Management & Coordination Task 2: Topographic & Boundary Survey Task 3: Geotechnical Engineering Services Task 4: Preliminar Task 5: Playground Selection Task 6: Final Design Task 7: Bidding Assistance Task 8: MET Council Grant Assistance June 2026 June/July 2026 June/July 2026 July - August 2026 August 2026 - November 2026 TBD TBD FEES Bolton & Menk, Inc.'s proposed fees to provide the work described herein will be billed hourly based on the enclosed fee schedule with the total estimated cost as identified below. i aan i. r i ujct�l. iviai iasci i Icl I U6 %.uvi uu lauvi i Task 2: Topographic & Boundary Survey (per park/area) - Perry Park (includes parking lot and all ballfields) - Sampson Park - Ingerson Park - Ingerson Park —Trail Task 3: Geotechnical Engineering Services Task 4: Preliminary Design $19,000 $21,000 $9,700 $7,100 $6,125 $7,900 $43,500 8 Bolton & Monk is an eoual 0000rtunity ern Task 5: Playground Selection Process $8,000 Task 6: Final Design $53,000 Task 7: Bidding Assistance $6,500 Task 8: MET Council Grant Assistance $7,000 TOTAL $188,825 Bolton & Menk is an eaual 0000rtunity em BOLTON & MENK 2026 FEE SCHEDULE The following fee schedule is based upon competent, responsible professional services and is the minimum, below which adequate professional standards cannot be maintained. It is, therefore, to the advantage of both the professional and the client that fees be commensurate with the service rendered. Charges are based on hours spent at hourly rates in effect for the individuals performing the work. The hourly rates for principals and members of the staff vary according to skill and experience. The current specific billing rate for any individual can be provided upon request. The fee schedule shall apply for the period through December 31. 2026. These rates may be adjusted annually thereafter to account for changed labor costs, inflation, or changed overhead conditions. These rates include labor, general business, and other normal and customary expenses associated with operating a professional business. For projects with typical expenses and unless otherwise agreed, the above rates include vehicle and personal expenses, mileage, telephone, survey stakes, and routine expendable supplies; no separate charges will be made for these activities and materials. Expenses beyond typical project expenses, non -routine expenses, and expenses beyond the agreed scope of services, such as out of town travel expenses, long travel distances, large quantities of prints, extra report copies, outsourced graphics and photographic reproductions, document recording fees, outside professional and technical assistance, and other items of this general nature will be invoiced separately. Rates and charges do not include sales tax, if applicable. EMPLOYEE 2026 HOURLY CLASSIFICATION BILLING RATE Administrative $70-175 Technician $98-186 Survey Technician_ Senior Technician $112-202 $138-230 Construction Manager $162-228 Design Engineer $135-202 Graduate Engineer $125-190 Graduate Surveyor $145-202 Landscape Designer $128-170 Landscape Architect $156-185 Licensed Project Surveyor $190-237 Planner $120-181 Project Engineer $148-220 Project Manager $140-261 Senior Landscape Architect $154-269 Senior Planner $172-240 Senior Project Engineer $170-220 Senior Project Manager $190-290 Architect $160-276 Two -Man Survey Crew $260-310 One -Man Survey Crew $175-210 Specialist* $100-216 Practice Expert** $125-349 Principal** $180-320 No separate charges wll oe made for GPS or robotic total stations on Hutton & Menk, Inc. survey assignments: the cost of this equipment is included in the rates for survey technicians. 'Specialized role not classified above otherwise. "Highly specialized and industry expertise unique to the market or area of discipline. 2026 FEE SCHEDULE I EIRTON & MINK, INC. Bolton & Menk is an eoual 0000rtunity ern NEW BUSINESS ITEM -11A 75 Years MEMORANDUM DATE: June 8, 2026 TO: Honorable Mayor and City Councilmembers Jessica Jagoe, City Administrator FROM: Julie Hanson, Assistant to the City Administrator/City Clerk SUBJECT: Ordinance Amendment Chapter 2, Section 210 — Council Meetings Budgeted Amount: Actual Amount: Funding Source: Council Should Consider Motion to approve, table, or deny the following: • Ordinance 2026-011 Amending Chapter 2, Section 210, Subsection 210.03, Subd. 1 related to the Council's work sessions' start time. Background/Discussion The City Council discussed its meeting schedule at the May 11 and May 26 work sessions. Staff was directed to bring forward an ordinance amendment to accomplish the following: • Hold regular City Council Work Sessions at 5:00 p.m. Attached is a redlined draft Ordinance 2026-011 as such. The passage of this ordinance would be effective immediately and begin with the June 22 work session. Budget Impact N/A Attachments Attachment A: Draft Ordinance 2026-011 Page 1 of 1 Attachment A 75 Years ORDINANCE NO.2026-011 CITY OF ARDEN HILLS RAMSEY COUNTY, MINNESOTA AN ORDINANCE AMENDING CHAPTER 2, SECTION 210, SUBSECTION 210.03 OF THE ARDEN HILLS CITY CODE CONCERNING COUNCIL MEETINGS THE CITY COUNCIL OF THE CITY OF ARDEN HILLS, MINNESOTA, ORDAINS: SECTION 1. Chapter 2 —Administration, Section 210 — City Council, Subsection 210.03 — Council Meetings, is hereby amended by adding the below underlined language and removing the strieken language. Subd. 1 Regular Meetings. The City Council shall have regular meetings on the second and fourth Monday of each month at 7:00 p.m. and shall have regular workshops on the second and fourth Monday of each month at 5:3000 p.m. If a regular or workshop meeting date falls on a holiday, the meeting shall be conducted on the next following business day. The first meeting of the year shall be held on the second Monday of January. All meetings shall be held in the City Hall except as otherwise, from time to time, may be designated by City Council Resolution. PASSED and ADOPTED this 8th day of June, 2026, by the City Council of the City of Arden Hills, Minnesota. CITY OF ARDEN HILLS By David Grant, Mayor ATTEST: Julie Hanson, City Clerk Published in the Pioneer Press on June , 2026 To view the final document, access adopted Ordinances via Arden Hills Public Laserfiche Weblink by visiting cityofardenhills.org and clicking on Archived Documents under Helpful Links on our main webpage