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ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION — OCTOBER 14, 2024 Councilmember Monson said using the $395,000, if we wanted a 10% cushion that would be $434,500. If we want to go down to 5% it would be $415,000. Mayor Grant said knowing that $15,000 doesn't go very far, knowing we're building a fire station, he would like to see the $435,000. Councilmember Holden asked when we have to bond. Finance Director Yang said it is May of 2025. Councilmember Holden asked when we'll get the bid back. Councilmember Monson said it should be sometime this spring. Before May, because that's when they are hoping to start construction. Councilmember Holden wondered if we bring in extra money, using the 5% or 10%, will we pay down the debt, that year. Or would we hang on to it another year. Her intent is if people are putting in money to pay for the fire station, we should use it to pay for the fire station that year. Whatever we bring in, in a year, should go towards paying the bond in that year. She understands we may be short one year but the interest savings would be significant. She wants to understand if the money will be spent in the year it was collected. Mayor Grant didn't think that decision needed to be made today. Councilmember Holden said if we're going to hang on to the money, in case we are short one year, she would prefer the 5%. But if the intent is to pay this down she would prefer the 10%. Every year we don't have to pay, is more money we aren't paying towards interest. Mayor Grant thinks the 10% option gives a little cushion in case it comes back too high, or if it doesn't quite cover. Councilmember Rousseau asked if all the money collected in the year, if it were higher, would it go towards the next year, if we were short. Finance Director Yang said it would not. Mayor Grant asked if a franchise fee could be structured for at 15-year period. Mike Wilhelmi said you could adjust this to any length. The agreement is 20-years but the fee agreement lives as long as you let it. If you just leave it alone it will be one rate for 20 years. If you want to come back and adjust it, you have the ability to do that. Mayor Grant said in our case, this is just for the fire department building. That's the only thing we're spending these funds on. He can't speak to what future councils may do, but the intent of this council is to use the money strictly for the fire station.