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ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION — JULY 14, 2025 15 Finance Director Yang confirmed. She shared the questions the Council should discuss today. She said in 2026 the ending CIP (PIR) fund balance is expected to be $782,000. In 2027, it will be about $620,000. The fund will be in the red by 2028 by $1.6 million. Councilmember Holden asked if those 2026 and 2027 includes the Old Highway 10 Trail. Finance Director Yang confirmed. Mayor Grant said when Lake Johanna was proposed to the County, there were two other projects of a similar nature. He couldn't remember the names of the others. He remembers the County saying they may not move forward with all of them and may just do one. Is Arden Hills the chosen one? Public Works Director/City Engineer Swearingen can't speak to the other two but Lake Johanna is in the TIP to begin design and planning for the project next year. They anticipate doing an RFP for consulting services later this year so they can begin the project next year. That process will tell what the cost and feasibility of the project are. That gives them a couple of years before the projected 2028 construction. Planning and design for that trail will begin next year. Councilmember Holden said once they do all of that, it can sit on the books for four or five years. Public Works Director/City Engineer Swearingen confirmed. City Administrator Jagoe will follow up with Finance Director Yang on the Trident Park Development. This has the 2026 projected park dedication fees and that would be in 2025. She will see if this is programed in with the 2025 numbers. Councilmember Weber said comparing the graph to last year, it was green, but low. This is a big concern. Looking at the estimated project cost from the PMPs 2028, 2030 and 2032, the price has gone up a lot. He asked what happened there. Public Works Director/City Engineer Swearingen said he organized the PMP for the entire city on a 20-year schedule. That helps map things out. He manages a 10-year CIP. He uses the 20-year CIP map to create a desktop estimate, based on recent projects. When they are 10-years out he enters them as full depth reclamation. It's a worst case scenario. He applies potential added costs. In recent years, costs have been spiking. He's been trying to catch up. He's increasing the contingency quite a bit. When projects get 2-years out Public Works does site inspections. The timing makes it difficult to adjust the CIP for that year. The next year we roll into feasibility and design. Similar to where we are now for the 2026 PMP. His estimates had increases in water because there was an adjustment needed for the main piece off of Highway 96 and a little bit of the PIR because we had to add more trail construction because it would be impacted for access. They put the retaining wall in as PIR rather than a storm water cost. It is difficult to project. Right now there are 33 projects in the 10-year CIP. He has a good process as the projects get closer. They are exaggerated at the 5-year mark and it gets a little tighter as we get closer. Councilmember Weber said comparing last year's CIP to this year, the update was a 22% increase in 2026 estimate and a 45% increase in 2028. He understands that those are probably exaggerated but those are enormous increases. That's hard to plan for.