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ARDEN HILLS CITY COUNCIL WORK SESSION — SEPTEMBER 8, 2025 4 Finance Director Yang reported the City received $2 million in local grants for the Old Highway 10 project to assist with covering the costs for the trail work. Councilmember Weber commented on how bonding costs the City money, but noted it also costs the City money to defer projects. He explained in the last Council meeting there was a consensus to go with Option D or E. He noted he supported Options D or J moving forward. Mayor Grant supported the Council focusing on Options D and J. Councilmember Holden asked how many years the City would be bonding for. Finance Director Yang reported this would be a 20 year bond. Further discussion ensued regarding Options J-1 and J-2. Councilmember Holden indicated she would rather levy for dollars up front than throw away funding on interest payments. She asked how much the City would be paying in interest each year for 20 years. Finance Director Yang estimated this to be $1.3 million on a $2.8 million bond. There was further discussion around the interest amount and whether it was $1.3 million or $1.5 million. Finance Director Yang confirmed it is the $1.3 million. Councilmember Weber commented if the proposed street projects were further delayed, costs to the City would continue to rise. He did not want to risk the street projects rolling over to a full reconstruction. He supported the City paying $1.3 million for 20 years starting in 2028 then end up with an unhealthy PIR Fund. Councilmember Monson explained Scenario J has a shift in the PMP projects. She expressed concern with how the delay and bonding would impact expenses for the City. She stated she would like to see what it would look like to not shift the 2028 project. Councilmember Holden indicated the bonding was not a short term action but rather would require putting enough money into the budget for the future. She was of the opinion $50,000 was too low. Mayor Grant commented if the City set aside $180,000 (three levy points) in addition to the $250,000, the City would have $430,000 annually. He indicated the Council could consider a 3% additional levy increase over the next few years and this funding could go directly into the PIR Fund. He explained he would like to avoid the $1.5 million in interest each year for the next 20 years. Councilmember Rousseau stated she understood this levy number would be high, but this does have some appeal as this would assist with saving money over time. She understood this increase would hurt initially but this may be the best option for the City in the long run. She indicated she was also interested in making sure the road projects weren't shifted. Mayor Grant noted Karth Lake was proposed for 2026 and Benton Way was proposed for 2028.