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ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION — AUGUST 25, 2025 21 Councilmember Monson said we would increase the levy in 2027 by $163,000. There would be no change to the annual levy after that. It's at $250,000 and we would bump it by $163,000 in 2027. We would just hold it there? We have projects that would allow us to bond in 2026 but this would still shift the projects. Finance Director Yang confirmed. Councilmember Monson said scenario B is bonding in 2026 and bonding again in 2030 plus an increase to the levy with another increase in 2031. At that point we don't know what else we will be on the project list. She doesn't want to get in the position where we are bonding for every PMP. She is leaning toward scenario E, allowing for adjustments if we need it. Councilmember Holden said in scenario E we say we don't have to have a levy increase or just minor increases. We know we are going to add more projects. We know residents are going to want things. We know public safety costs are going to increase. For us to say the levy will hardly go up over the next 8-10 years isn't a reality. We know we are going to be in the hole in 3032 and 3034. There is no reason why we can't set the levy now to alleviate that, without paying a ton of money in interest. Councilmember Weber asked what percent increase to the PIR would it take for that? He thought 150%. That is essentially scenario A which would increase funding now to plan ahead. That still wouldn't get us there. Just increasing the levy will hurt now and still not get us where we need to be. He agrees with a single round of bonding. Scenario E looks good, it could look better at the end. We don't need a 0% increase on the PIR this year. We can do $50,000 and then $50,000 every year after. The initial presentation that showed we have 30 miles of roads and we're only funding it at 50% of what we need. He thought $1.5 million a year is what we need to be investing in the City to maintain that. We are only doing $750,000. Some of that comes from state aid but that's only $350,000 per year. We need to start building back the PIR. In 2034 we may be in a good position. Once we get Rice Creek Commons moving, those new residents will be helping to pay down those bonds. He isn't suggesting that as a crutch, but it is the goal of the City to get Rice Creek Commons underway. Councilmember Holden said looking at what Rice Creek Commons is going to cost us, we're in the hole. The money we get from Rice Creek Commons has to go back into Rice Creek Commons. The money from the current Arden Hills will have to go into Rice Creek. Councilmember Weber asked in what timeframe. Mayor Grant said it is true that the City will get revenue out of Rice Creek Commons. The City will also incur costs out of Rice Creek Commons that we will have to cover. By the time you net them we hope they break even. He isn't sure we're there. It won't be a huge cash cow. Councilmember Monson asked if Councilmember Holden is advocating for scenario A. Councilmember Holden said she hasn't decided yet. She would probably go with Staff recommendation. Councilmember Monson asked when the PIR Fund had an increase in the levy.