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ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION — JULY 14, 2025 13 Mayor Grant understands. He said we could. He said 2042 is so far out. That money could be used for the trail and keep the MSA so we can get to a favorable balance long before 2042. The PMP projects on the chart consume a good portion of that $350,000/year. Councilmember Rousseau asked if we put some money toward the Lake Jo roundabout. Public Works Director/City Engineer Swearingen said MSA is more of a revenue stream, rather than an account. When you see the unfunded balance when projects come through, there are certain items that can be MSA eligible. That's what gets put into that unfunded balance. When we receive the MSA revenue dollars, he can submit to request it goes to that account and it is reimbursed. When they come through, when we don't have MSA funds available, we front it with PIR Funds. He would recommend not directing PIR funds towards projects that can be funded by MSA. He said you can have an unfunded balance and every time you get funds from MSA you can request it back. He said there were MSA eligible items in that roundabout project. We had State Aid record that. Councilmember Rousseau asked what the bonding rate would be for the additional portions of that. Finance Director Yang said based on the 2025 series, our rate was 3.71%. She assumes we would still be right around that same rate if we were to issue additional bonds. Councilmember Holden asked what we were considering bonding for. Councilmember Rousseau said we could go a different route for the trail funding. Mayor Grant said bonding would cost us more money. Councilmember Weber wondered if it is accurate to say our current balance for MSA is $3.1 million and we expect it to be up to $3.3 million. Finance Director Yang pointed out the unfunded column on the chart. That shows that we have more project expenditures than we do MSA funds. Councilmember Weber thinks we have to bond the whole trail project. We don't have the cash to pay for it. We don't get paid back by any of the revenue streams that we are anticipating using to pay for the trail. Councilmember Holden asked what trail we were discussing. Councilmember Weber said the Old Highway 10 Trail is the only trail that we are slated to move forward with. Public Works Director/City Engineer Swearingen said the Snelling Avenue Trail, Hamline Trail and MnDOT Trail, as well. There are four trail projects next year. Councilmember Holden said we could use the Trident money. We will probably have to bond for the Lake Johanna Trail. We can't bond early for two trails.