Minutes - Council Work Session - 08/23/2022

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Finance Director Lund stated that it is too early to tell because part of the fund balance is based on what is adopted as part of the budget. Councilmember Musgrove asked Finance Director Lund if this seems to be a unique year due to the roads and if there was anticipation that next year would not be as much of a struggle and would be a better year with less needs. Finance Director Lund mentioned that next year the road levy will be built in. She added there was a meeting with the County yesterday and other cities within Anoka County have comparable increases. Finance Director Lund added that White Bear Lake is at a 23% increase over last year due to the City taking on other big projects, such as funds for White Bear Lake fire stations and public facilities. She added that other cities are getting wages up for their Staff. She noted that Ramsey was at 20.67% and the highest was at 23.21% and the lowest was Eden Prairie at 4.5%. She added that most cities are also looking at big projects and that all increases are higher than the average 5%, and there are about 5 cities out of 14 that are above 20%. Councilmember Musgrove asked if the city will have ARPA funds for 2022-2023 or for 2023- 2024. Finance Director Lund said that it will be $750,000 for 2023-2024, $375,000 being applied for the spray patching and the other $375,000 affecting the general fund, increasing the amount for spray patching to $575,000 for 2023-2024. She added that the other part of the ARPA fund is for body cameras, for around $200,000 and this was authorized in 2022, so this was subtracted off. She said that the remaining balance is what was then used to determine the net debt amount needed for the additional roads. Councilmember Musgrove asked if some of the funds will have to be picked up in the 2025 budget since the funds are not available. She stated that she was just trying to look ahead because it does not seem like there is much that can be done with this year’s budget but it will work itself out in the coming years and in 2025, more would have to be picked up again. Finance Director Lund stated that she believes that Councilmember Musgrove was absent from the meeting where Council discussed the $750,000 that would go towards the spray patching and the catch up amount for the next two to three years. She stated that she was not sure if it would stay at a $575,000 amount for each year and it was currently at $200,000 and the $375,00 was added. City Engineer/Interim Public Works Director Westby mentioned that the Public Works committee had discussed this and he would propose there be an increase of the $200,000 to closer to $500,000 range for spray patching. Finance Director Lund stated that the $300,000 would be the additional amount that would be needed. Acting Mayor Riley added that it would be in two years. City Council Work Session / August 23, 2022 Page 6 of 16