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be drafted to facilitate one City doing the bonding, it is attached under Attachment A, she <br />believes the agreement is relatively simple and is comfortable with the process. This term sheet <br />assumes Arden Hills would be the City providing the bonding. <br />The question being posed to the City Council this evening is if it would entertain bonding for the <br />project and having an agreement with the other three cities to pay us their portion of the debt <br />service annually. Tonight is not committing the City to this financing method, but if the City is <br />willing to consider it, the Council Liaison and Staff will report back to the board for future <br />funding discussions. <br />It should also be noted that Shoreview has proposed, and Staff would recommend, using a <br />phased debt service option for the station, which would have lower payments at the beginning <br />and slightly higher payments later on. This would result in approximately $125,000 more from <br />Arden Hills over the 20-year life of the bond. <br />Budget Impact <br />The City has been slowly stepping up its increases to its Public Safety Capital Fund to support <br />the upcoming construction of the station and avoid large levy spikes; however, the estimated cost <br />for the new station has increased more than anticipated and the City will need to continue to <br />make adjustments to its funding sources, note funding sources are going to be considered by the <br />Council at a future date. It is anticipated that the Public Capital Safety Fund will need an <br />approximate $230,000 more on an annual basis starting in 2025 to meet its ongoing obligations. <br />Attachment <br />Attachment A: Draft Term Sheet for Bonding <br />Page 2 of 2 <br />