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ARDEN HILLS CITY COUNCIL WORK SESSION—APRIL 8, 2024 5 City Administrator Perrault believed Shoreview was not interested in bonding the full project. Councilmember Fabel asked why the fire department could not issue for the bonds. City Administrator Perrault reported the fire department was a private non-profit and the City funds their activities. He explained the cities would receive a lower interest rate and would have to fund the project. He stated a JPA was in place for the future operation of the new station. He stated the City's bond attorney has explained the JPA likely will not be allowed to issue debt given the fact they have no debt history. Mayor Grant stated he supported the City issuing its own debt for this project because this would give the City more control over the project. Councilmember Rousseau questioned what the cost to the City would be to bond for this project. Mayor Grant estimated the cost to the City would be roughly $30,000. Councilmember Rousseau asked if the City were to go the individual route, would Shoreview and North Oaks follow suit. Councilmember Monson anticipated Shoreview and North Oaks would support this option because there was no big financial swing one way or another. She believed it was important for the City to maintain flexibility when it comes to repayment options. Councilmember Holden stated the Council may have more opportunities in the future if the City were to bond the entire project. She also noted that if the City bonds on its own, there are more options to bond for other future needs in the City such as the Lake Johanna trail, versus bonding jointly with Shoreview and North Oaks. She said the City could possibly pay the bond off and get a lesser rate. Councilmember Monson agreed. Mayor Grant discussed how interest rates may come down in the future and noted it may benefit the City to hold its own bonds for this project. Councilmember Holden questioned how much the City would owe for the station if it was pro- rated for future residents. City Administrator Perrault reported this was a complicated question. He indicated he could not speak to how much the City would owe five or ten years from now. He discussed how this would vary based on the formula. Councilmember Holden stated she supported the City bonding for its own portion of the project. Councilmember Fabel asked if the fire board had a preference for the bonding. Councilmember Monson did not believe the fire board had a preference and understood the City of Shoreview does not want to carry a single bond for this project.