10-14-24-R - Laserfiche WebLink

Home Browse Search

ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION — SEPTEMBER 23, 2024 8 Councilmember Monson said she is supportive of the proportion of share where residents pay the lowest, with small commercial and industrial at the next level and it grows based on usage. She thinks that structure will help support the small businesses by charging a smaller fee. Mike Wilhelmi shared a preliminary run of what amount each category would pay to reach the $455,000 amount discussed earlier. If the share was $3.50 for residential, $4.50 for C/I non - demand, $24 for demand and $325 for large C/I. The councilmembers thought that was reasonable. Mayor Grant asked how much debt service that would fund. One option is to make up the difference in a different way. Councilmember Rousseau thought Council could select the 15-year plan and try to pay it off sooner. Councilmember Monson agreed if we can save on interest. 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.