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ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION — JULY 14, 2025 14 Finance Director Yang said we would want to bond when we need the cash. Councilmember Holden agreed. She said they won't let us bond if it's four years out. She thought we had enough money for the Old Highway trail with the Trident and County funds. Finance Director Yang said there is a portion of the Old Highway 10 trail that needs to be MSA funded. We have to upfront money and it's more than our annual allocation. Councilmember Holden thought that was only if you use MSA money for the whole thing. We have other money, in other pots that we could use. She wouldn't want to spend a quarter of a million dollars bonding for a $2 million trail. Councilmember Weber said it was $4.5 million trail. He wondered if we will get the grant money before the bills are due. Finance Director Yang said that's when they would reimburse it. Public Works Director/City Engineer Swearingen said we get 50% when the construction contract is signed. He believes that is true for both $1 million grants. We should get $1 million when a contract is signed. Mayor Grant said we get $350,000 a year and we are able to go unfunded to the amount of $3.5 million but can't go beyond that. Some cities run a positive balance and some cities, like us, are in a negative. If enough cities are in the positive, we can go to MSA and ask then to advance us some money that's not being used. They will probably say yes but will say no if they don't have it. Councilmember Holden said finance people will tell you to never have a positive balance. Councilmember Rousseau agreed. A dollar today is more valuable than it will be five years from now. Councilmember Holden said assuming it's around in five years. Mayor Grant said there is nothing wrong with an unfunded balance, but it's not infinite. Councilmember Rousseau asked how much MSA money are we underfunded. Public Works Director/City Engineer Swearingen said that is the $1.75 million on the chart. Finance Director Yang confirmed. The $1.75 million is as of 2024. Mayor Grant asked when we get the 2025 allocation. Finance Director Yang didn't recall exactly, but it will be soon. Mayor Grant said when that comes in, we'll be at $1.38 million.