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ARDEN HILLS CITY COUNCIL WORK SESSION — APRIL 8, 2024 6 Councilmember Holden asked how the Council wanted to use franchise fees. She supported the City having a specific focus for its franchise fees. City Administrator Perrault stated last July, August and September the Council had franchise fee discussions and the direction to staff at that time was to bring this item back in the spring of 2024. Staff was to give a presentation to the public to gauge feedback and was then to report back to the City Council. He reported staff was aware of funding gaps in the PIR Fund, Public Safety Capital Fund and Equipment Building Replacement Fund. He indicated the finance director has been working on a presentation and this information would be provided to the Council on Wednesday. Mayor Grant commented the feedback would be on bonding, tax increases, and franchise fees. He stated the Council would have to consider its preferred route. Councilmember Rousseau requested that a breakdown on how taxes would increase be included as well. City Administrator Perrault explained staff would provide a breakdown on property taxes versus franchise fees. Councilmember Fabel was of the opinion how the funding was spent confuses the issue. He stated the fact is, the City needed more money than was currently coming in for budgeted expenses. He indicated this funding could come through an increase in property taxes or a franchise fee. Councilmember Holden supported the City including trail expenses in the City's future expenditures. Councilmember Monson stated the Council has not decided whether or not to move forward with trail improvements without State bonding. She supported the Council having this discussion. She believed it would be interesting to have the trails included in some form to show the additional costs for the next five years. Mayor Grant indicated he could support this. He appreciated how the information presented would provide residents with a wide view of the City's upcoming expenses and how the City was planning to collect funds for its upcoming projects. Councilmember Holden did not believe operating costs should be coming out of franchise fees. Rather, franchise fees should be for trails or the fire station and operating costs should be coming out of property taxes. Mayor Grant indicated it would be great if the City received funding for the fire station from the federal government and state funding for the trails. However, for the time being, the City had to consider how to collect fees in order to cover its expenses for its proposed projects. Councilmember Monson supported the City having more discussions regarding franchise fees once the Council learns if there is an appetite for franchise fees from the public. Mayor Grant asked if Councilmember Holden had any further questions regarding this item.