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ARDEN HILLS CITY COUNCIL WORK SESSION — SEPTEMBER 22, 2025 18 bonding for 2026. It's too expensive. For today's purposes, we can assume it includes bonding or not. We can make that decision next year. Mayor Grant said for every $2 you bond, you pay pack $3. Councilmember Monson understands. There are also advantages to keeping the levy lower. Bonding is a normal financial tool. There are trade-offs. She would prefer to try to keep the levy smooth. Councilmember Weber said if not for today's visit, we may not have had a choice. To that point, it was a good discussion with the County. Given the potential of getting that good news from the County, may solve the problem we're facing. We have to add at least $100,000, maybe $150,000, to the PIR this year. It needs to be on the higher end, if we don't bond. Mayor Grant agreed with the earlier comment that we don't have to make the decision today, but as we look at next year, it becomes easier to see what our options are. We'll know what the County is doing. His view of bonding is it should be reserved for a large project. We should try to levy, when possible, to avoid bonding. The interest will pay for a road project. Discussion ensued regarding the trade off between bonding and completing projects on schedule or increased project costs due to delaying projects. Council agreed the PIR Fund must be built up. Finance Director Yang said she can bring back options showing $100,000, $120,000, $180,000, $240,000 and $300,000. Mayor Grant said $300,000 is out and $240,000 may also be off the table. Councilmember Monson wants to see $100,000. We can do $100,000 this year and we can always increase it next year. Councilmember Weber wants to see the scenarios. He also believes $240,000 may be out of the question. Council directed Staff to provide scenarios showing $100,000, $120,000 and $180,000, to include all of the other changes discussed earlier. City Administrator Jagoe asked Council for direction on whether or not to shift the PMP projects. She said the Old Highway 10 project will be moved to 2027, per Council's direction. She was wondering if there is anything with the Street Projects that would be affected by the PMP shift. Finance Director Yang said shifting the PMP, starting in 2028, won't impact this year. Finance Director Yang will not have different scenarios next time. She will have the rates and what the levy increases would result in based on tonight's discussion. The focus will be on just 2026 and the levy impact.