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ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION—MAY 12, 2014 5 Trunk water Storm water mains Storm water- water feature • Park acquisition and development • City fees (i.e. SAC, WAC, and Park dedication) • Planning studies • Additional studies that are not part of the sewer and water and storm sewer feasibility studies • Private development requests for public improvements • City expenses (staff time and/or hired consultants) to review development proposals and for the building inspections • Future expenses to provide municipal services to TCAAP City Administrator Klaers indicated that in general terms, the City TCAAP expenses can be separated out in to a Capital category and in to an Operating category. City Administrator Klaers reported that capital expenses are for one time, large expenditures such as trunk sewer and water lines or storm sewer mains and ponds. Some of these capital expenses are best completed in advance of the redevelopment projects and some are best completed concurrent with redevelopment activities. Municipal bonds are often used to finance capital improvements and the bonds are typically repaid through assessments to benefitted property owners. City Administrator Klaers stated that everyone understands that financing the trunk utilities is a major concern for the City Council. Article III of the Joint Powers Agreement (JPA) reviews this and some of the other City financial issues. (Article III was provided in the agenda packet as reference.) Regarding the trunk sewer and water utilities, the plan is to assess 100% of the costs out to the benefitted property owners. Originally, at the time of approving the JPA, it was anticipated that the trunk utilities would be installed in phases from south to north but it now looks like they will be installed all at once between County Road 96 and the County Road H/1- 35W intersections. While the likely financing method to recapture the costs is known; the unknowns are the total cost of the trunk utilities, the per developable acre assessment amount, and the repayment schedule. City Administrator Klaers explained that on the topic of the trunk storm sewer mains and ponds, these utilities can be looked at as being both similar and yet different than the trunk sewer and water utilities. They are similar in that they can be 100% assessed; and they are different in that some of the system (the pond especially) may be constructed in phases as development occurs. Also, Rice Creek Watershed regulations are a major determining factor in the final size, location and design of the storm water system. Right now it is very hard to tell where the surface water management requirements end and the water feature amenity begins. This utility is also more likely than the trunk sewer and water to be funded by methods other than assessments (i.e. by storm water fees collected as development happens; similar to City SAC and WAC). City Administrator Klaers stated that concerning park development, the City should be able to acquire all of the desired land for parks through the park dedication/platting process, but if there