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ARDEN HILLS CITY COUNCIL WORK SESSION — JUNE 9, 2025 4 Parks and Recreation Manager Skalicky said sponsors typically reach out first to express interest. That is when they will get the information, prior to payment. Councilmember Holden said if you look at the Easter Egg Hunt or the Halloween event, there are a lot of games. Staff is doing most of the work. It would be nice if someone could sponsor the golf game at the Halloween event or the one of the individual games during the Easter Egg Hunt. Mayor Grant said the Arden Hills Foundation buys the pumpkins for the Pumpkin Hunt. He doesn't know that they would want a booth, but they may want their name on a sandwich board. Councilmember Monson thinks Parks and Recreation Manager Skalicky has a good vision for what she wants. She thinks they have given good feedback. In the interest of time, she would like to move on. B. Utility Rates — SAC/WAC Discussion Stacie Kvilvang, Financial Consultant from Ehlers began the discussion regarding the utilities on TCAAP that Arden Hills is responsible for; to include the utilities under the spine road, the water tower and ancillary things that help the water tower get water to the places it needs to go. The costs are about $14 million today. The intent was that Arden Hills would bond for those improvements. The preference is to bond through the 429 Assessment process. What that means is those costs are assessed to the property owners, so they pay through the property taxes. It's the lowest risk debt option for the City. The other option is to pay for the improvements with SAC and WAC fees. They would have a set debt schedule but the City would have to wait for the SAC and WAC units to come in with development. That's riskier. What if there is a recession? Or what if something fell through? Financial Consultant Kvilvang said TCAAP has always been the "thumb" and the "California Parcel". That is how it has been discussed in the past. The thumb parcel will be developed by Ryan Companies and the California parcel is still available to Alatus and other sub -developers. There is benefit to the property owner of the thumb parcel. When you run numbers for SAC and WAC units to payoff that debt, the thumb would only be paying about $380,000. Financial Consultant Kvilvang said for the purpose of this analysis, we know the California parcel is going to happen once we get to a development deal. They intend to assess those improvements. We can give latitude to the developer if they want to spread those equally on a per -square foot basis or they can put proportionate shares on the users. The single-family residential can't support as big of a burden as the apartments or the commercial properties. The thumb parcel is under a different developer, so SAC and WAC fees have been set. That will set the schedule for the City. There will be a separate schedule for SAC and WAC in TCAAP. All of that can change. What happens if the County doesn't sell the land for $1.00? The City has been clear that we want assessment debt because that is the least risk to the City. Conversations will have to happen with Ryan about how we put a proportionate share on the thumb parcel. The numbers she is presenting may change based on those conversations. Mayor Grant said with the 429 Assessments there are two different bonding scenarios. Financial Consultant Kvilvang confirmed. That is because the improvements are happening at different times.