09-23-24-WS - Laserfiche WebLink

Home Browse Search

ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION— SEPTEMBER 23, 2024 8 Mayor Grant said as long as there were no pre-payoff penalties, that would be an option. That would give the City the flexibility with $458,000 coming in against the debt service of$395,000. We can pay it off quicker,but also if funds are needed for a fire truck or some design condition that needs to be added, there would be some money there. Councilmember Holden said there is a $500,000 difference if it's not paid off early. She thought increasing the C/I non-demand at$5.00. Councilmember Monson thought Council has a good feel for what the options are and she thought Xcel should be invited back. Councilmember Holden said the new interest rates may give some savings. Mayor Grant asked Mike Wilhelmi to return with some concrete numbers to target the $455,000. He said Council all agrees that a shorter debt service is preferred over a longer time period. Councilmember Fabel said he opposes this method of refinancing. He thinks if we were being funded properly through the taxpayers knowing they are paying for it, it would be part of the annual budget. It would make sense to spread that out over number of years rather than levying the entire thing in the first ten years. Councilmember Monson said she would like to have a public hearing. Mayor Grant said it needs to be in place by February. Finance Director Yang said it needs to be in place by November, for implementation in February. Xcel energy needs a 90-day grace period. Councilmember Monson said we would need to have the public hearing and vote in October. Mayor Grant said the 90-day period is an Xcel requirement. Mike Wilhelmi said it is required by Xcel and the PUC for processing. Bill notices go out to customers, so they aren't surprised when they see the fee. Interim City Administrator Jagoe said the item could be brought back on the October 14 Work Session for final direction. That would allow time for the 10-day posting, get it on the agenda for October 28. If there is direction for a public hearing that could be noticed as part of the entire agenda item. That would reach that targeted November 1 deadline. Councilmember Rousseau asked what happens if there is a public hearing and the public dissuades Council from moving forward with franchise fees. What would need to be done with the tax levies? Mayor Grant said we would be beyond the point to change it. Councilmember Monson said it's not in the preliminary levy. She said Council would have to set the prelim levy to a point that assumes franchise fees won't be used. This is not a palatable