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ARDEN HILLS CITY COUNCIL WORK SESSION — DECEMBER 8, 2025 7 Councilmember Holden said development affects other lakes, too. This shouldn't be any different than what we do at other lakes. Councilmember Rousseau said there is a big volume difference between Karth Lake and Lake Johanna. She said it's similar to a pond. The culvert by the businesses is a huge waterslide. She is pleased to see Karth Lake got a B rating from the DNR. The Karth Lake Foundation has done a lot of work. Councilmember Weber asked if the businesses in that area are a part of the Karth Lake Improvement District and if they would be leviable. Staff said they are not. Councilmember Weber said they are putting water directly into the lake from their lots. Public Works Director/City Engineer Swearingen confirmed. He said the stormwater pond we are proposing is Phase 2 of BMP 1. Phase 1 was fixing the erosion on the hillside. We cured the erosion issue in Phase 1 and Phase 2 will be treating that. A lot of these improvements are doing work for the commercial properties but the commercial properties didn't trigger it and it's grandfathered in. Those properties pay the same stormwater utility that every other property pays. Councilmember Monson wants to know more about why they're still a district. What distinguishes their criteria for them to levy? She is interested to know why Staff is recommending the City cover this cost vs. levying the district. Why is this project distinguishable? Public Works Director/City Engineer Swearingen doesn't have an answer for why they are an improvement district. Historically there is a discussion the City Council can have if they want to apply costs to this improvement district. There is nothing in the bylaws that outlines what should be done. The City Attorney said any work done would benefit the properties on the lake. So there is a legal avenue for the City to apply a levy. Councilmember Weber said the statement that this is a benefit to those lake properties is the same logic we use in assessing for streets. Councilmember Rousseau asked how many residents there are in the district. Public Works Director/City Engineer Swearingen said there are 40. Councilmember Rousseau asked what our percentage is, as a City. Public Works Director/City Engineer Swearingen said we are one property. Councilmember Rousseau asked for confirmation that the contributing businesses don't pay any of it. Public Works Director/City Engineer Swearingen said they wouldn't be levied but they would be paying through the stormwater utility fund.