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ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION — SEPTEMBER 23, 2024 Councilmember Rousseau asked if it is considered a fixed asset. She asked if it is typical for the repayment to be fluid and subject to change. Finance Director Yang said she hasn't typically seen that in the past. Councilmember Rousseau said she would like to see the bond paid off as soon as possible. She thought if TCAAP is developed, there could be up to 1,900 new homes. She wondered if the franchise fee will make a difference for Council to go to the 20-year bond. Mayor Grant said his preference would be 10years. Councilmember Rousseau said that would be her general preference, too, however, the percentages that go into the interest rate. We've got 24% of our market value is non -profits. She is trying to play devil's advocate. If we did the 20-year and then in 10 years TCAAP gets developed, that would be additional homes and businesses that will pay towards the franchise fee. Councilmember Holden was comparing the difference in interest rates. She thinks we'll pay $765,000 for 10 years and almost $2 million for 20 years. She doesn't think TCAAP being developed should be a factor. Extending the bond for 20 years is just pouring money into interest. That million dollars could pay for a lot of City improvements. She asked when the current bond is done. Mayor Grant replied 2028. Councilmember Holden thought that money could be used to pay down this bond. Mayor Grant said that was in the Enterprise Fund. Councilmember Monson asked if the bond can be paid off early to avoid some interest. Finance Director Yang confirmed. Councilmember Holden said that is why it would be better to bond alone. Mayor Grant thought some bonds can be refinanced. He thought we've done it before when interest rates went down and the City was able to refinance and save $150,000 a year. He would like to know, from Ehlers, if that is possible. Finance Director Yang will ask them that and follow up with Council. Councilmember Monson asked if the franchise fee is only for electric or electric and gas. She asked if the decision for only charging franchise fees is because everyone has electric, but not everyone has gas. Finance Director Yang confirmed. Councilmember Monson asked what the rate would be if the target $542,000 a year. She stated it's $3.00 for $375,000.