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ARDEN HILLS CITY COUNCIL WORK SESSION — JANUARY 12, 2026 3 Public Works Director/City Engineer Swearingen confirmed. That amount was put into their budget. It wasn't through a specific grant program. The watershed originally thought the amount would be lower. We are pursuing an additional $10,000 that we could apply to this but we won't hear on that until February or March. Councilmember Weber asked if the $56,000 would be split between the City and the Improvement District. Public Works Director/City Engineer Swearingen confirmed. That amount would be taken off the top and the remaining amount would be split 50150 between the two. Councilmember Holden is leaning towards scenario one. She noted that during public comment they heard residents say this shouldn't be on all taxpayers. She said development will cause a change to a piece of property. Changes to drainage due to development of one property shouldn't be the responsibility of everyone. Mayor Grant said the budget amount is outlined, but noted there is a potential for $110,000 more. He asked if Staff is anticipating it will cost that much more, or if the budget is flexible. Public Works Director/City Engineer Swearingen said the available funding sources are in there. What is budgeted in the Stormwater Fund is the $500,000. The additional is grants. The available funding equals the $660,000 potential. Mayor Grant asked if the actual budgets have changed. Staff said they have not. Mayor Grant is in favor of option one. He asked Staff if the cost of that option would be the $185,000. Public Works Director/City Engineer Swearingen confirmed that is the current estimate. Councilmember Weber asked if the assessment will be based on property value so it will fluctuate from home to home. Staff confirmed. Councilmember Weber said he supports option one, scenario one. Councilmember Monson said if we do option one, scenario one what year would the levy start? Staff said we could levy starting in 2027. Residents would start paying in 2027. Councilmember Monson noted that in 2026 residents will have the standard City levy. She asked when they pay that assessment. Public Works Director/City Engineer Swearingen said it would be the same process.