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ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION — AUGUST 19, 2024 16 expenditures, the funding gap is now $575,000. If Council chooses to move forward with using the franchise fee to offset the $375,000 debt service payment, it will leave $200,000. Councilmember Holden asked when the bond for the fire station will happen. Councilmember Monson said the plan is spring of 2025. Councilmember Monson asked about the equipment building replacement fund. There is an additional transfer to the levy from the EDA. She noted we're still bringing in $100,000 a year for that. So, the proposals may push that and redistribute this money. Finance Director Yang confirmed. She asked if there is direction from Council on a transfer of the $100,000. She explained that by delaying the gateway project to 2026, there is a $100,000 levy that is going to EDA for 2025. She asked if Council would like to transfer that to offset the equipment replacement fund balance or would they want to keep it in the EDA fund. Councilmember Rousseau thought the EDA fund was also used to offset staff costs, as well. Finance Director Yang confirmed it is. There is a healthy fund balance in the EDA so transferring $100,000 wouldn't cause issues to the fund balance. Mayor Grant asked if Council would like to use $100,000 to offset the levy or leave it in the EDA. Councilmember Holden thinks it should be used to offset the levy. Until the EDC comes up with a plan, it would be nice to use those funds in other areas. Mayor Grant agreed. It would be a way to smooth out the levy increase. Councilmember Monson is open to that for 2025 and revisit for 2026. Finance Director Yang asked for clarification that the Council would support moving $100,000 from the EDA to the equipment replacement fund in 2025. Discussion ensued regarding which fund should receive the $100,000. Council agreed to move $100,000 to the general fund for 2025. Finance Director Yang asked if Council had direction on future equipment building replacement fund. She is proposing $110,000 per year, moving into the future to ensure a positive fund balance. Councilmember Holden asked where the 2025 levy is. Mayor Grant stated there is a mathematical error. The number is 18.6%, not 17.4%. Discussion ensued regarding completing the discussion items before deciding about moving the money to the general fund until the bigger picture is clearer.