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Home My WebLink About10-14-24-WS and Closed WSMayor: Address: David GrantIt 1245 W Highway 96 Arden Hills MN 55112 -A HILLS Councilmembers: EN Phone: Brenda Holden 651-792-7800 Emily Rousseau City Council Work Session Tena Monson Website: Tom Fabel Agenda www.cityofardenhills.org October 14, 2024 5:30 p.m. City Hall City Vision Arden Hills is a strong community that values its unique environmental setting, strong residential neighborhoods, vital business community, well -maintained infrastructure, fiscal soundness, and our long-standing tradition as a desirable City in which to live, work, and play. Members of the public may attend a meeting in -person at City Hall or they may view the meeting remotely on the City's website using the below link. Meetings are also broadcast on Cable Channel 16 for those that live in Arden Hills. https://cityofardenhills.orci/320/Watch- City-Meetings This meeting will be streamed live on local Cable Channel 16 and available for playback on our website. CALL TO ORDER - Declare October 14, 2024 a Non -Holiday to Conduct City Business 1. PUBLIC INQUIRIES/INFORMATIONAL This is an opportunity for citizens to respectfully bring to the Council's attention any items which are relevant to the City. In addressing the Council, you must first state your name and address for the record. Comments shall be limited to three (3) minutes or less. Written documents or other materials should be handed to the City Clerk for distribution to the Council prior to or during the meeting. Council will generally not respond at the same meeting where an issue is initially raised by a member of the public but the Council may refer the issue to staff for further research and possible report or action at a future Council meeting. 2. RESPONSE TO PUBLIC INQUIRIES 3. AGENDA ITEMS 3.A. Franchise Fee Discussion Update Joua Yang, Finance Director Documents: MEMO.PDF ATTACHMENT A.PDF ATTACHMENT B.PDF ATTACHMENT C.PDF ATTACHMENT D.PDF 3.13. Adult Use Cannabis Zoning Discussion Jessica Jagoe, Interim City Administrator Documents: MEMO.PDF ATTACHMENT A.PDF ATTACHMENT B.PDF 3.C. Personnel Discussion Jessica Jagoe, Interim City Administrator Documents: MEMO.PDF 3.D. Union Negotiations Update (Closed Per M.S. 13D.03, Subd. 1(B) And 179A.01 To 179A.25) Jessica Jagoe, Interim City Administrator Documents: MEMO.PDF 3.E. Rice Creek Commons/TCAAP Discussion Jessica Jagoe, Interim City Administrator Documents: MEMO.PDF 3.F. Agenda Planning Jessica Jagoe, Interim City Administrator Documents: MEMO.PDF ATTACHMENT A.PDF ATTACHMENT B.PDF 4. COUNCIL/STAFF COMMENTS ADJOURN AGENDA ITEM - 3A lt' ,-ARZEN HILLS MEMORANDUM DATE: October 14, 2024 Honorable Mayor and City Councilmembers TO: Jessica Jagoe, Interim City Administrator FROM: Joua Yang, Finance Director SUBJECT: Preliminary 2025 General Obligation CIP Bond Schedules Electric Franchise Fee Rate Structure Scenarios Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Council Should Consider Provide feedback on the Preliminary 2025 General Obligation Capital Improvement Plan (CIP) Bond Schedules Provide feedback on the implementation of Electric Franchise Fees Backiround Staff held a Capital Funding Update Open House on Saturday, April 20th at City Hall. Staff shared that there is an anticipated future gap in funding for the City, largely due to increased costs for the Lake Johanna Fire Department Station project ($4.1M), the Old Hwy 10 Trail/Lake Valentine to Hwy 96 and Lake Johanna trail projects ($3.6M), and a recently revised equipment needs schedule. A survey was released, thereafter, for City residents and businesses to provide additional input. During the May 13, 2024 Work Session, staff shared the survey results. There were 73 residential survey responses, with approximately 54% choosing a franchise fee option (22% - electric only; 32% - gas and electric), approximately 30% choosing a property tax levy option, and approximately 17% choosing the combination of property tax levy and franchise fee option. For those respondents who chose any combination of a franchise fee option, approximately 64% indicated the City should consider dedicating the fees for a specific purpose. Some common themes included bike lanes, park and trail improvements; structures and road maintenance; storm water system maintenance and utility infrastructure; fire station. Respondents also provided their concerns and additional comments for Council consideration. Some common concerns shared is that an increase to property taxes would burden taxpayers and would remain in effect indefinitely. Additionally, some respondents shared that non -profits should be assessed a fee in lieu of taxes, which would mean assessing a levy increase on residents and imposing a franchise fee on non- residential and non-profit organizations. Pagel of 3 Council Discussion Staff is seeking direction from the City Council regarding debt service and franchise fees adoption for the Lake Johanna Fire Department new station. CIP Funding Update —Debt Service & Franchise Fees Included in the 2025-2029 CIP budget are franchise fee assumptions of $375,000 annually, estimated to start in 2025 to offset debt service for the new fire station. Per the August 19 budget work session, Council directed staff to work with the City's financial advisor, Ehler's, to determine the timing and structure of a bond issuance to occur in the spring of 2025, in order to align with the anticipated development of the new fire station. Staff and Ehler's recommend that the City issue bonds independently of one overarching project bond, as this will allow the City to take advantage of more favorable interest rates through the issuance of Bank Qualified (BQ) bonds (less than $10 million of tax-exempt bonds). Attachment A are the preliminary Series 2025 general obligation CIP bond schedules provided by Ehler's, highlighting one scenario at current market bank qualified (BQ) AAA rates and the second scenario at current market BQ AAA rates with a 75 basis points cushion. The scenarios assume the City will issue bonds at a par value between $4,645,000 and $4,690,000, of which $4,425,000 would be directed to the project construction fund, with remaining funds to cover the costs of issuance, underwriter fees, and interest. Each scenario assumes the bonds would settle on May 15, 2025 at different maturity dates of 10 years, 15 years, and 20 years. At the September 23 Worksession, Council discussed at length, the cost of the new fire station in conjunction with debt service and franchise fees. As a follow-up to that discussion, Council had inquired as to whether the debt service schedule accounts for construction costs at $20 million or $25 million. Staff confirmed that the $4.425M project estimate (per Attachment A, Page 2, Deposit to project construction fund) accounts for an estimated $24M of construction cost, less an estimated $6M in state funding, and the City's 25% proportionate share. Staff also confirmed the bonds would be callable but it would come at an additional cost or refinancing could also be an option. What term or debt service schedule does Council want to move forward with? This direction is needed in order to finalize the franchise fee rate structure. Attachment B contains nine electric franchise fee rate structure scenarios provided by Xcel Energy. The scenarios assume three revenue targets of a) $330,000, b) $395,000, and c) $542,000, which aligns with the Series 2025 general obligation CIP bond schedules at current market BQ AAA rates. The fee rate structures assume Residential properties are assessed a monthly fee between $2.50 and $4.25, Small C&I Non -Demand properties are assessed a monthly fee between $3.25 and $5.75, and other property rates varying slightly. For comparative purposes, Attachment C provides a comparative analysis of a franchise fee and/or property tax increase and the impact to residential, manufactured homes, apartments, and commercial properties under the $395,000 revenue target. If construction bids come back differently, Council could amend ordinances to change the rates or the City could find other funding mechanisms to cover any differences. With the debt service payments expected to occur in February 2026, staff recommends adoption of the franchise fee rate structure no later than November 2024. This timing is crucial to allow Xcel Energy time to meet the Public Utilities Commission's requirements. Below is a timeline of key dates to ensure proper implementation of franchise fees in order to meet the City's bonding need in the spring of 2025. Page 2 of 3 • October 28, 2024 — City Council Franchise Fees Ordinance & Agreement • November 2024 — January 2025 — Public Utilities Commission (PUC) review of Franchise Fees (ex. PUC needs 90 days, this could shift to December — February 2025 which means implementation is March 2025) • February 2025 — Implementation of Franchise Fees (aligns one year in advance of debt service payment) • Tentative May 15, 2025 — Cities Issuance of Bonds for LJFD Headquarters • February 2026 — Debt Service Payment Staff has confirmed with the City Attorney that a public hearing is not required for the adoption of an ordinance for the implementation of franchise fees and/or approval of the franchise agreements with Xcel Energy. For all ordinances, a notice is posted on the City website 10 days in advance of the Council's consideration to inform the public of the upcoming ordinance review. During the September 23 Worksession, the Council consensus was not to have a public hearing, but instead add the topic as a new business item to include the steps Council took to inform residents of the process. Council should discuss and provide direction to city staff on the new business item at the October 28 meeting. What additional thoughts, if any, should staff consider? Attachment D is a draft electric franchise ordinance with fees for Council review. This agreement has been reviewed by the City Attorney and will need to be fully approved and executed prior to Xcel Energy's implementation of franchise fees on customers' bills. Budget Impact None. Attachments A. Preliminary Series 2025 General Obligation CIP Bond Schedules B. Electric Franchise Fee Rate Structure Scenarios C. Comparative Analysis — Property Type D. Northern States Power Company Electric Franchise Ordinance with Fee Page 3 of 3 Attachment A 2025 DEBT SERVICE SCHEDULE LJFD FINANCING Scenario 1: Current Market BQ AAA Rates 10-year 15-year 20-year Underwriter's Fee $ 55,740 $ 55,800 $ 55,920 Costs of Issuance 68,000 68,000 68,000 Interest 93,547 100,039 109,582 Project Construction 4,425,000 4,425,000 4,425,000 Rounding 2,713 1,161 1,498 Par Amount of Bonds $ 4,645,000 $ 4,650,000 $ 4,660,000 Total Interest 765,185 1,252,755 1,898,735 Total Debt Service $ 5,410,185 $ 5,902,755 $ 6,558,735 Annual Debt Service $ 542,000 $ 395,000 $ 330,000 True Interest Cost 3.07856% 3.28670% 3.61672% Scenario 2: Current Market BQ AAA Rates plus 75 bps 10-year 15-year 20-year Underwriter's Fee $ 56,040 $ 56,100 $ 56,280 Costs of Issuance 68,000 68,000 68,000 Interest 119,022 125,794 135,940 Project Construction 4,425,000 4,425,000 4,425,000 Rounding 1,938 106 4,780 Par Amount of Bonds $ 4,670,000 $ 4,675,000 $ 4,690,000 Totallnterest 980,875 1,587,078 2,371,750 Total Debt Service $ 5,650,875 $ 6,262,078 $ 7,061,750 Annual Debt Service $ 568,000 $ 420,000 $ 356,000 True Interest Cost 3.83315% 4.04475% 4.37874% City of Arden Hills, Minnesota $4,645,000 General Obligation CIP Bonds, Series 2025 Assumes Current Market BQ AAA Rates 10 Years Sources & Uses Dated 05/15/2025 1 Delivered 05/15/2025 Sources Of Funds Par Amount of Bonds $4,645,000.00 Total Sources Uses Of Funds Total Underwriter's Discount (1.200%) Costs of Issuance Deposit to Capitalized Interest (CIF) Fund Deposit to Project Construction Fund Rounding Amount Total Uses Series 2025A GO CIP Bonds I SINGLE PURPOSE 1 8/28/2024 1 2:11 PM $4,645,000.00 55,740.00 68,000.00 93,546.67 4,425,000.00 2,713.33 $4,645,000.00 EHLERS City of Arden Hills, Minnesota $4,645,000 General Obligation CIP Bonds, Series 2025 Assumes Current Market BQ AAA Rates 10 Years Net Debt Service Schedule Date Principal Coupon Interest Total P+I CIF Net New D/S Fiscal Total 05/15/2025 - - 02/01/2026 93,546.67 93,546.67 (93,546.67) - 08/01/2026 65,775.00 65,775.00 65,775.00 - 02/01/2027 410,000.00 2.750% 65,775.00 475,775.00 475,775.00 541,550.00 08/01/2027 - - 60,137.50 60,137.50 60,137.50 - 02/01/2028 420,000.00 2.750% 60,137.50 480,137.50 480,137.50 540,275.00 08/01/2028 - - 54,362.50 54,362.50 54,362.50 - 02/01/2029 435,000.00 2.750% 54,362.50 489,362.50 489,362.50 543,725.00 08/01/2029 - - 48,381.25 48,381.25 48,381.25 - 02/01/2030 445,000.00 2.750% 48,381.25 493,381.25 493,381.25 541,762.50 08/01/2030 - - 42,262.50 42,262.50 42,262.50 - 02/01/2031 455,000.00 2.750% 42,262.50 497,262.50 497,262.50 539,525.00 08/01/2031 - - 36,006.25 36,006.25 36,006.25 - 02/01/2032 470,000.00 2.800% 36,006.25 506,006.25 506,006.25 542,012.50 08/01/2032 - - 29,426.25 29,426.25 29,426.25 - 02/01/2033 480,000.00 2.800% 29,426.25 509,426.25 509,426.25 538,852.50 08/01/2033 - - 22,706.25 22,706.25 22,706.25 - 02/01/2034 495,000.00 2.900% 22,706.25 517,706.25 517,706.25 540,412.50 08/01/2034 - - 15,528.75 15,528.75 15,528.75 - 02/01/2035 510,000.00 2.950% 15,528.75 525,528.75 525,528.75 541,057.50 08/01/2035 - - 8,006.25 8,006.25 8,006.25 - 02/01/2036 525,000.00 3.050% 8,006.25 533,006.25 533,006.25 541,012.50 Total $4,645,000.00 - $858,731.67 $5,503,731.67 (93,546.67) $5,410,185.00 - Significant Dates Dated 5/15/2025 First Coupon Date Yield Statistics 2/01/2026 Bond Year Dollars Average Life $29,893.11 6.436 Years Average Coupon Net Interest Cost (NIC) True Interest Cost (TIC) 2.8726741% 3.0591385% 3.0785566% Bond Yield for Arbitrage Purposes All Inclusive Cost (AIC) 2.8681724% 3.3399105% IRS Form 8038 Net Interest Cost 2.8726741% Weighted Average Maturity 6.436 Years Series 2025A GO CIP Bonds I SINGLE PURPOSE 1 8/28/2024 1 2:11 PM REHLERS PUBLIC FINANCE ADVISORS City of Arden Hills, Minnesota $4,645,000 General Obligation CIP Bonds, Series 2025 Assumes Current Market BQ AAA Rates 10 Years Debt Service Schedule 105% of Date Principal Coupon Interest Total P+I CIF Net New D/S Total 02/01/2026 - - 93,546.67 93,546.67 (93,546.67) - - 02/01/2027 410,000.00 2.750% 131,550.00 541,550.00 541,550.00 568,627.50 02/01/2028 420,000.00 2.750% 120,275.00 540,275.00 540,275.00 567,288.75 02/01/2029 435,000.00 2.750% 108,725.00 543,725.00 543,725.00 570,911.25 02/01/2030 445,000.00 2.750% 96,762.50 541,762.50 541,762.50 568,850.63 02/01/2031 455,000.00 2.750% 84,525.00 539,525.00 539,525.00 566,501.25 02/01/2032 470,000.00 2.800% 72,012.50 542,012.50 542,012.50 569,113.13 02/01/2033 480,000.00 2.800% 58,852.50 538,852.50 538,852.50 565,795.13 02/01/2034 495,000.00 2.900% 45,412.50 540,412.50 540,412.50 567,433.13 02/01/2035 510,000.00 2.950% 31,057.50 541,057.50 541,057.50 568,110.38 02/01/2036 525,000.00 3.050% 16,012.50 541,012.50 541,012.50 568,063.13 Total $4,645,000.00 - $858,731.67 $5,503,731.67 (93,546.67) $5,410,185.00 $5,680,694.25 Significant Dates Dated 5/15/2025 First Coupon Date 2/01/2026 Yield Statistics Bond Year Dollars $29,893.11 Average Life 6.436 Years Average Coupon 2.8726741% Net Interest Cost (NIC) 3.0591385% True Interest Cost (TIC) 3.0785566% Bond Yield for Arbitrage Purposes 2.8681724% All Inclusive Cost (AIC) 3.3399105% Series 2025A GO CIP Bonds I SINGLE PURPOSE 1 8/28/2024 1 2:11 PM EHLERS PUBLIC FINANCE ADVISORS City of Arden Hills, Minnesota $4,650,000 General Obligation CIP Bonds, Series 2025 Assumes Current Market BQ AAA Rates 15 Years Sources & Uses Dated 05/15/2025 1 Delivered 05/15/2025 Sources Of Funds Par Amount of Bonds $4,650,000.00 Total Sources Uses Of Funds Total Underwriter's Discount (1.200%) Costs of Issuance Deposit to Capitalized Interest (CIF) Fund Deposit to Project Construction Fund Rounding Amount Total Uses Series 2025A GO CIP Bonds I SINGLE PURPOSE 1 8/28/2024 1 2:10 PM $4,650,000.00 55,800.00 68,000.00 100,039.11 4,425,000.00 1,160.89 $4,650,000.00 EHLERS City of Arden Hills, Minnesota $4,650,000 General Obligation CIP Bonds, Series 2025 Assumes Current Market BQ AAA Rates 15 Years Net Debt Service Schedule Date Principal Coupon Interest Total P+I CIF Net New D/S Fiscal Total 05/15/2025 - - 02/01/2026 100,039.11 100,039.11 (100,039.11) - 08/01/2026 70,340.00 70,340.00 70,340.00 - 02/01/2027 255,000.00 2.750% 70,340.00 325,340.00 325,340.00 395,680.00 08/01/2027 - - 66,833.75 66,833.75 66,833.75 - 02/01/2028 260,000.00 2.750% 66,833.75 326,833.75 326,833.75 393,667.50 08/01/2028 - - 63,258.75 63,258.75 63,258.75 - 02/01/2029 265,000.00 2.750% 63,258.75 328,258.75 328,258.75 391,517.50 08/01/2029 - - 59,615.00 59,615.00 59,615.00 - 02/01/2030 275,000.00 2.750% 59,615.00 334,615.00 334,615.00 394,230.00 08/01/2030 - - 55,833.75 55,833.75 55,833.75 - 02/01/2031 280,000.00 2.750% 55,833.75 335,833.75 335,833.75 391,667.50 08/01/2031 - - 51,983.75 51,983.75 51,983.75 - 02/01/2032 290,000.00 2.800% 51,983.75 341,983.75 341,983.75 393,967.50 08/01/2032 - - 47,923.75 47,923.75 47,923.75 - 02/01/2033 300,000.00 2.800% 47,923.75 347,923.75 347,923.75 395,847.50 08/01/2033 - - 43,723.75 43,723.75 43,723.75 - 02/01/2034 305,000.00 2.900% 43,723.75 348,723.75 348,723.75 392,447.50 08/01/2034 - - 39,301.25 39,301.25 39,301.25 - 02/01/2035 315,000.00 2.950% 39,301.25 354,301.25 354,301.25 393,602.50 08/01/2035 - - 34,655.00 34,655.00 34,655.00 - 02/01/2036 325,000.00 3.050% 34,655.00 359,655.00 359,655.00 394,310.00 08/01/2036 - - 29,698.75 29,698.75 29,698.75 - 02/01/2037 335,000.00 3.150% 29,698.75 364,698.75 364,698.75 394,397.50 08/01/2037 - - 24,422.50 24,422.50 24,422.50 - 02/01/2038 345,000.00 3.200% 24,422.50 369,422.50 369,422.50 393,845.00 08/01/2038 - - 18,902.50 18,902.50 18,902.50 - 02/01/2039 355,000.00 3.300% 18,902.50 373,902.50 373,902.50 392,805.00 08/01/2039 - - 13,045.00 13,045.00 13,045.00 - 02/01/2040 365,000.00 3.400% 13,045.00 378,045.00 378,045.00 391,090.00 08/01/2040 - - 6,840.00 6,840.00 6,840.00 - 02/01/2041 380,000.00 3.600% 6,840.00 386,840.00 386,840.00 393,680.00 Total $4,650,000.00 - $1,3529794.11 Significant Dates Dated First Coupon Date Yield Statistics Bond Year Dollars Average Life Average Coupon Net Interest Cost (NIC) True Interest Cost (TIC) Bond Yield for Arbitrage Purposes All Inclusive Cost (AIC) IRS Form 8038 Net Interest Cost Weighted Average Maturity Series 2025A GO CIP Bonds I SINGLE PURPOSE 1 8/28/2024 1 2:10 PM g'ZEHLERS PUBLIC FINANCE ADVISORS $6,002,794.11 (100,039.11) $5,902,755.00 - 5/15/2025 2/01/2026 $42,991.67 9.246 Years 3.1466426% 3.2764352% 3.2867024% 3.1314377% 3.4794575% 3.1466426% 9.246 Years City of Arden Hills, Minnesota $4,650,000 General Obligation CIP Bonds, Series 2025 Assumes Current Market BQ AAA Rates 15 Years Debt Service Schedule 105% of Date Principal Coupon Interest Total P+I CIF Net New D/S Total 02/01/2026 - - 100,039.11 100,039.11 (100,039.11) - - 02/01/2027 255,000.00 2.750% 140,680.00 395,680.00 395,680.00 415,464.00 02/01/2028 260,000.00 2.750% 133,667.50 393,667.50 393,667.50 413,350.88 02/01/2029 265,000.00 2.750% 126,517.50 391,517.50 391,517.50 411,093.38 02/01/2030 275,000.00 2.750% 119,230.00 394,230.00 394,230.00 413,941.50 02/01/2031 280,000.00 2.750% 111,667.50 391,667.50 391,667.50 411,250.88 02/01/2032 290,000.00 2.800% 103,967.50 393,967.50 393,967.50 413,665.88 02/01/2033 300,000.00 2.800% 95,847.50 395,847.50 395,847.50 415,639.88 02/01/2034 305,000.00 2.900% 87,447.50 392,447.50 392,447.50 412,069.88 02/01/2035 315,000.00 2.950% 78,602.50 393,602.50 393,602.50 413,282.63 02/01/2036 325,000.00 3.050% 69,310.00 394,310.00 394,310.00 414,025.50 02/01/2037 335,000.00 3.150% 59,397.50 394,397.50 394,397.50 414,117.38 02/01/2038 345,000.00 3.200% 48,845.00 393,845.00 393,845.00 413,537.25 02/01/2039 355,000.00 3.300% 37,805.00 392,805.00 392,805.00 412,445.25 02/01/2040 365,000.00 3.400% 26,090.00 391,090.00 391,090.00 410,644.50 02/01/2041 380,000.00 3.600% 13,680.00 393,680.00 393,680.00 413,364.00 Total $4,650,000.00 - $1,352,794.11 $6,002,794.11 (100,039.11) $5,902,755.00 $6,197,892.75 Significant Dates Dated 5/15/2025 First Coupon Date 2/01/2026 Yield Statistics Bond Year Dollars $42,991.67 Average Life 9.246 Years Average Coupon 3.1466426% Net Interest Cost (NIC) 3.2764352% True Interest Cost (TIC) 3.2867024% Bond Yield for Arbitrage Purposes 3.1314377% All Inclusive Cost (AIC) 3.4794575% Series 2025A GO CIP Bonds I SINGLE PURPOSE 1 8/28/2024 1 2:10 PM i4'EHLERS IN PUBLIC FINANCE ADVISORS City of Arden Hills, Minnesota $4,660,000 General Obligation CIP Bonds, Series 2025 Assumes Current Market BQ AAA Rates 20 Years Sources & Uses Dated 05/15/2025 1 Delivered 05/15/2025 Sources Of Funds Par Amount of Bonds $4,660,000.00 Total Sources Uses Of Funds Total Underwriter's Discount (1.200%) Costs of Issuance Deposit to Capitalized Interest (CIF) Fund Deposit to Project Construction Fund Rounding Amount Total Uses Series 2025A GO CIP Bonds I SINGLE PURPOSE 1 8/28/2024 1 2:09 PM $4,660,000.00 55,920.00 68,000.00 109,582.22 4,425,000.00 1,497.78 $4,660,000.00 EHLERS City of Arden Hills, Minnesota $4,660,000 General Obligation CIP Bonds, Series 2025 Assumes Current Market BQ AAA Rates 20 Years Net Debt Service Schedule Date Principal Coupon Interest Total P+I CIF Net New D/S Fiscal Total 05/15/2025 - - 02/01/2026 109,582.22 109,582.22 (109,582.22) - 08/01/2026 77,050.00 77,050.00 77,050.00 - 02/01/2027 175,000.00 2.750% 77,050.00 252,050.00 252,050.00 329,100.00 08/01/2027 - - 74,643.75 74,643.75 74,643.75 - 02/01/2028 180,000.00 2.750% 74,643.75 254,643.75 254,643.75 329,287.50 08/01/2028 - - 72,168.75 72,168.75 72,168.75 - 02/01/2029 185,000.00 2.750% 72,168.75 257,168.75 257,168.75 329,337.50 08/01/2029 - - 69,625.00 69,625.00 69,625.00 - 02/01/2030 190,000.00 2.750% 69,625.00 259,625.00 259,625.00 _ 329,250.00 08/01/2030 - - 67,012.50 67,012.50 67,012.50 - 02/01/2031 195,000.00 2.750% 67,012.50 262,012.50 262,012.50 329,025.00 08/01/2031 - - 64,331.25 64,331.25 64,331.25 - 02/01/2032 200,000.00 2.800% 64,331.25 264,331.25 264,331.25 328,662.50 08/01/2032 - - 61,531.25 61,531.25 61,531.25 - 02/01/2033 205,000.00 2.800% 61,531.25 266,531.25 266,531.25 328,062.50 08/01/2033 - - 58,661.25 58,661.25 58,661.25 - 02/01/2034 210,000.00 2.900% 58,661.25 268,661.25 268,661.25 327,322.50 08/01/2034 - - 55,616.25 55,616.25 55,616.25 - 02/01/2035 215,000.00 2.950% 55,616.25 270,616.25 270,616.25 326,232.50 08/01/2035 - - 52,445.00 52,445.00 52,445.00 - 02/01/2036 225,000.00 3.050% 52,445.00 277,445.00 277,445.00 329,890.00 08/01/2036 - - 49,013.75 49,013.75 49,013.75 - 02/01/2037 230,000.00 3.150% 49,013.75 279,013.75 279,013.75 328,027.50 08/01/2037 - - 45,391.25 45,391.25 45,391.25 - 02/01/2038 235,000.00 3.200% 45,391.25 280,391.25 280,391.25 325,782.50 08/01/2038 - - 41,631.25 41,631.25 41,631.25 - 02/01/2039 245,000.00 3.300% 41,631.25 286,631.25 286,631.25 328,262.50 08/01/2039 - - 37,588.75 37,588.75 37,588.75 - 02/01/2040 250,000.00 3.400% 37,588.75 287,588.75 287,588.75 325,177.50 08/01/2040 - - 33,338.75 33,338.75 33,338.75 - 02/01/2041 260,000.00 3.600% 33,338.75 293,338.75 293,338.75 326,677.50 08/01/2041 - - 28,658.75 28,658.75 28,658.75 - 02/01/2042 270,000.00 3.750% 28,658.75 298,658.75 298,658.75 327,317.50 08/01/2042 - - 23,596.25 23,596.25 23,596.25 - 02/01/2043 280,000.00 3.850% 23,596.25 303,596.25 303,596.25 327,192.50 08/01/2043 - - 18,206.25 18,206.25 18,206.25 - 02/01/2044 290,000.00 3.950% 18,206.25 308,206.25 308,206.25 326,412.50 08/01/2044 - - 12,478.75 12,478.75 12,478.75 - 02/01/2045 305,000.00 4.000% 12,478.75 317,478.75 317,478.75 329,957.50 08/01/2045 - - 6,378.75 6,378.75 6,378.75 - 02/01/2046 315,000.00 4.050% 6,378.75 321,378.75 321,378.75 327,757.50 Total $4,660,000.00 - $2,008,317.22 $6,668,317.22 (109,582.22) $6,558,735.00 - Significant Dates Dated _ 5/15/2025 First Coupon Date 2/01/2026 Yield Statistics Bond Year Dollars $56,968.78 Average Life 12.225 Years Average Coupon 3.5252946% Net Interest Cost (NIC) 3.6234536% True Interest Cost (TIC) 3.6167188% Bond Yield for Arbitrage Purposes 3.4905474% All Inclusive Cost (AIC) 3.7730918% IRS Form 8038 Net Interest Cost 3.5252946% Weighted Average Maturity 12.225 Years Series 2025A GO CIP Bonds I SINGLE PURPOSE 1 8/28/2024 1 2:09 PM 14EHLERS PUBLIC FINANCE ADVISORS City of Arden Hills, Minnesota $4,660,000 General Obligation CIP Bonds, Series 2025 Assumes Current Market BQ AAA Rates 20 Years Debt Service Schedule 105% of Date Principal Coupon Interest Total P+I CIF Net New D/S Total 02/01/2026 - - 109,582.22 109,582.22 (109,582.22) - - 02/01/2027 175,000.00 2.750% 154,100.00 329,100.00 329,100.00 345,555.00 02/01/2028 180,000.00 2.750% 149,287.50 329,287.50 329,287.50 345,751.88 02/01/2029 185,000.00 2.750% 144,337.50 329,337.50 329,337.50 345,804.38 02/01/2030 190,000.00 2.750% 139,250.00 329,250.00 329,250.00 345,712.50 02/01/2031 195,000.00 2.750% 134,025.00 329,025.00 329,025.00 345,476.25 02/01/2032 200,000.00 2.800% 128,662.50 328,662.50 328,662.50 345,095.63 02/01/2033 205,000.00 2.800% 123,062.50 328,062.50 328,062.50 344,465.63 02/01/2034 210,000.00 2.900% 117,322.50 327,322.50 327,322.50 343,688.63 02/01/2035 215,000.00 2.950% 111,232.50 326,232.50 326,232.50 342,544.13 02/01/2036 225,000.00 3.050% 104,890.00 329,890.00 329,890.00 346,384.50 02/01/2037 230,000.00 3.150% 98,027.50 328,027.50 328,027.50 344,428.88 02/01/2038 235,000.00 3.200% 90,782.50 325,782.50 325,782.50 342,071.63 02/01/2039 245,000.00 3.300% 83,262.50 328,262.50 328,262.50 344,675.63 02/01/2040 250,000.00 3.400% 75,177.50 325,177.50 325,177.50 341,436.38 02/01/2041 260,000.00 3.600% 66,677.50 326,677.50 326,677.50 343,011.38 02/01/2042 270,000.00 3.750% 57,317.50 327,317.50 327,317.50 343,683.38 02/01/2043 280,000.00 3.850% 47,192.50 327,192.50 327,192.50 343,552.13 02/01/2044 290,000.00 3.950% 36,412.50 326,412.50 326,412.50 342,733.13 02/01/2045 305,000.00 4.000% 24,957.50 329,957.50 329,957.50 346,455.38 02/01/2046 315,000.00 4.050% 12,757.50 327,757.50 327,757.50 344,145.38 Total $4,660,000.00 - $2,008,317.22 $6,668,317.22 (109,582.22) $6,558,735.00 $6,886,671.75 Significant Dates Dated First Coupon Date Yield Statistics 5/15/2025 2/01/2026 Bond Year Dollars $56,968.78 Average Life Average Coupon Net Interest Cost (NIC) True Interest Cost (TIC) Bond Yield for Arbitrage Purposes All Inclusive Cost (AIC) Series 2025A GO CIP Bonds I SINGLE PURPOSE 1 8/28/2024 1 2:09 PM 12.225 Years 3.5252946% 3.6234536% 3.6167188% 3.4905474% 3.7730918% 1;4'EHLERS IN PUBLIC FINANCE ADVISORS City of Arden Hills, Minnesota $4,670,000 General Obligation CIP Bonds, Series 2025 Assumes Current Market BQ AAA Rates plus 75bps 10 Years Sources & Uses Dated 05/15/2025 1 Delivered 05/15/2025 Sources Of Funds Par Amount of Bonds $4,670,000.00 Total Sources Uses Of Funds Total Underwriter's Discount (1.200%) Costs of Issuance Deposit to Capitalized Interest (CIF) Fund Deposit to Project Construction Fund Rounding Amount Total Uses Series 2025A GO CIP Bonds I SINGLE PURPOSE 1 8/28/2024 1 2:14 PM $4,670,000.00 56,040.00 68,000.00 119,022.22 4,425,000.00 1,937.78 $4,670,000.00 EHLERS City of Arden Hills, Minnesota $4,670,000 General Obligation CIP Bonds, Series 2025 Assumes Current Market BQ AAA Rates plus 75bps 10 Years Net Debt Service Schedule Date Principal Coupon Interest Total P+I CIF Net New D/S Fiscal Total 05/15/2025 - - - - 02/01/2026 119,022.22 119,022.22 (119,022.22) - 08/01/2026 83,687.50 83,687.50 - 83,687.50 - 02/01/2027 400,000.00 3.500% 83,687.50 483,687.50 - 483,687.50 567,375.00 08/01/2027 - - 76,687.50 76,687.50 - 76,687.50 - 02/01/2028 410,000.00 3.500% 76,687.50 486,687.50 - 486,687.50 563,375.00 08/01/2028 - - 69,512.50 69,512.50 - 69,512.50 - 02/01/2029 425,000.00 3.500% 69,512.50 494,512.50 - 494,512.50 564,025.00 08/01/2029 - - 62,075.00 62,075.00 - 62,075.00 - 02/01/2030 440,000.00 3.500% 62,075.00 502,075.00 - 502,075.00 564,150.00 08/01/2030 - - 54,375.00 54,375.00 - 54,375.00 - 02/01/2031 455,000.00 3.500% 54,375.00 509,375.00 - 509,375.00 563,750.00 08/01/2031 - - 46,412.50 46,412.50 - 46,412.50 - 02/01/2032 475,000.00 3.550% 46,412.50 521,412.50 - 521,412.50 567,825.00 08/01/2032 - - 37,981.25 37,981.25 - 37,981.25 - 02/01/2033 490,000.00 3.550% 37,981.25 527,981.25 - 527,981.25 565,962.50 08/01/2033 - - 29,283.75 29,283.75 - 29,283.75 - 02/01/2034 505,000.00 3.650% 29,283.75 534,283.75 - 534,283.75 563,567.50 08/01/2034 - - 20,067.50 20,067.50 - 20,067.50 - 02/01/2035 525,000.00 3.700% 20,067.50 545,067.50 - 545,067.50 565,135.00 08/01/2035 - - 10,355.00 10,355.00 - 10,355.00 - 02/01/2036 545,000.00 3.800% 10,355.00 555,355.00 - 555,355.00 565,710.00 Total $4,670,000.00 - $1,099,897.22 $5,769,897.22 (119,022.22) $5,650,875.00 - Significant Dates Dated First Coupon Date Yield Statistics 5/15/2025 2/01 /2026 Bond Year Dollars $30,345.89 Average Life 6.498 Years Average Coupon 3.6245345% Net Interest Cost (NIC) 3.8092053% True Interest Cost (TIC) 3.8331482% Bond Yield for Arbitrage Purposes 3.6185476% All Inclusive Cost (AIC) 4.0983427% IRS Form 8038 Net Interest Cost 3.6245345% Weighted Average Maturity Series 2025A GO CIP Bonds I SINGLE PURPOSE 1 8/28/2024 1 2:14 PM 6.498 Years i44EHLERS PUBLIC FINANCE ADVISORS City of Arden Hills, Minnesota $4,670,000 General Obligation CIP Bonds, Series 2025 Assumes Current Market BQ AAA Rates plus 75bps 10 Years Debt Service Schedule 105% of Date Principal Coupon Interest Total P+I CIF Net New D/S Total 02/01/2026 - - 119,022.22 119,022.22 (119,022.22) - - 02/01/2027 400,000.00 3.500% 167,375.00 567,375.00 567,375.00 595,743.75 02/01/2028 410,000.00 3.500% 153,375.00 563,375.00 563,375.00 591,543.75 02/01/2029 425,000.00 3.500% 139,025.00 564,025.00 564,025.00 592,226.25 02/01/2030 440,000.00 3.500% 124,150.00 564,150.00 564,150.00 592,357.50 02/01/2031 455,000.00 3.500% 108,750.00 563,750.00 563,750.00 591,937.50 02/01/2032 475,000.00 3.550% 92,825.00 567,825.00 567,825.00 596,216.25 02/01/2033 490,000.00 3.550% 75,962.50 565,962.50 565,962.50 594,260.63 02/01/2034 505,000.00 3.650% 58,567.50 563,567.50 563,567.50 591,745.88 02/01/2035 525,000.00 3.700% 40,135.00 565,135.00 565,135.00 593,391.75 02/01/2036 545,000.00 3.800% 20,710.00 565,710.00 565,710.00 593,995.50 Total $4,670,000.00 - $1,099,897.22 $5,769,897.22 (119,022.22) $5,650,875.00 $5,933,418.75 Significant Dates Dated First Coupon Date Yield Statistics Bond Year Dollars Average Life Average Coupon Net Interest Cost (NIC) True Interest Cost (TIC) Bond Yield for Arbitrage Purposes All Inclusive Cost (AIC) Series 2025A GO CIP Bonds I SINGLE PURPOSE 1 8/28/2024 1 2:14 PM 5/15/2025 2/01/2026 $30,345.89 6.498 Years 3.6245345% 3.8092053% 3.8331482% 3.6185476% 4.0983427% IZ4EHLERS PUBLIC FINANCE ADVISORS City of Arden Hills, Minnesota $4,675,000 General Obligation CIP Bonds, Series 2025 Assumes Current Market BQ AAA Rates plus 75bps 15 Years Sources & Uses Dated 05/15/2025 1 Delivered 05/15/2025 Sources Of Funds Par Amount of Bonds $4,675,000.00 Total Sources Uses Of Funds Total Underwriter's Discount (1.200%) Costs of Issuance Deposit to Capitalized Interest (CIF) Fund Deposit to Project Construction Fund Rounding Amount Total Uses Series 2025A GO CIP Bonds I SINGLE PURPOSE 1 8/28/2024 1 2:13 PM $4,675,000.00 56,100.00 68,000.00 125,793.78 4,425,000.00 106.22 $4,675,000.00 EHLERS City of Arden Hills, Minnesota $4,675,000 General Obligation CIP Bonds, Series 2025 Assumes Current Market BQ AAA Rates plus 75bps 15 Years Net Debt Service Schedule Date Principal Coupon Interest Total P+I CIF Net New D/S Fiscal Total 05/15/2025 - - 02/01/2026 125,793.78 125,793.78 (125,793.78) - 08/01/2026 88,448.75 88,448.75 88,448.75 - 02/01/2027 240,000.00 3.500% 88,448.75 328,448.75 328,448.75 416,897.50 08/01/2027 - - 84,248.75 84,248.75 84,248.75 - 02/01/2028 250,000.00 3.500% 84,248.75 334,248.75 334,248.75 418,497.50 08/01/2028 - - 79,873.75 79,873.75 79,873.75 - 02/01/2029 260,000.00 3.500% 79,873.75 339,873.75 339,873.75 419,747.50 08/01/2029 - - 75,323.75 75,323.75 75,323.75 - 02/01/2030 265,000.00 3.500% 75,323.75 340,323.75 340,323.75 415,647.50 08/01/2030 - - 70,686.25 70,686.25 70,686.25 - 02/01/2031 275,000.00 3.500% 70,686.25 345,686.25 345,686.25 416,372.50 08/01/2031 - - 65,873.75 65,873.75 65,873.75 - 02/01/2032 285,000.00 3.550% 65,873.75 350,873.75 350,873.75 416,747.50 08/01/2032 - - 60,815.00 60,815.00 60,815.00 - 02/01/2033 295,000.00 3.550% 60,815.00 355,815.00 355,815.00 416,630.00 08/01/2033 - - 55,578.75 55,578.75 55,578.75 - 02/01/2034 305,000.00 3.650% 55,578.75 360,578.75 360,578.75 416,157.50 08/01/2034 - - 50,012.50 50,012.50 50,012.50 - 02/01/2035 320,000.00 3.700% 50,012.50 370,012.50 370,012.50 420,025.00 08/01/2035 - - 44,092.50 44,092.50 44,092.50 - 02/01/2036 330,000.00 3.800% 44,092.50 374,092.50 374,092.50 418,185.00 08/01/2036 - - 37,822.50 37,822.50 37,822.50 - 02/01/2037 340,000.00 3.900% 37,822.50 377,822.50 377,822.50 415,645.00 08/01/2037 - - 31,192.50 31,192.50 31,192.50 - 02/01/2038 355,000.00 3.950% 31,192.50 386,192.50 386,192.50 417,385.00 08/01/2038 - - 24,181.25 24,181.25 24,181.25 - 02/01/2039 370,000.00 4.050% 24,181.25 394,181.25 394,181.25 418,362.50 08/01/2039 - - 16,688.75 16,688.75 16,688.75 - 02/01/2040 385,000.00 4.150% 16,688.75 401,688.75 401,688.75 418,377.50 08/01/2040 - - 8,700.00 8,700.00 8,700.00 - 02/01/2041 400,000.00 4.350% 8,700.00 408,700.00 408,700.00 417,400.00 Total $4,675,000.00 - $1,712,871.28 $6,387,871.28 (125,793.78) $6,262,077.50 - Significant Dates Dated 5/15/2025 First Coupon Date 2/01/2026 Yield Statistics Bond Year Dollars $43,874.44 Average Life 9.385 Years Average Coupon 3.9040296% Net Interest Cost (NIC) 4.0318944% True Interest Cost (TIC) 4.0447484% Bond Yield for Arbitrage Purposes 3.8852561 % All Inclusive Cost (AIC) 4.2417281% IRS Form 8038 Net Interest Cost Weighted Average Maturity Series 2025A GO CIP Bonds I SINGLE PURPOSE 1 8/28/2024 1 2:13 PM 3.9040296% 9.385 Years 4EHLERS PUBLIC FINANCE ADVISORS City of Arden Hills, Minnesota $4,675,000 General Obligation CIP Bonds, Series 2025 Assumes Current Market BQ AAA Rates plus 75bps 15 Years Debt Service Schedule 105% of Date Principal Coupon Interest Total P+I CIF Net New D/S Total 02/01/2026 - - 125,793.78 125,793.78 (125,793.78) - - 02/01/2027 240,000.00 3.500% 176,897.50 416,897.50 416,897.50 437,742.38 02/01/2028 250,000.00 3.500% 168,497.50 418,497.50 418,497.50 439,422.38 02/01/2029 260,000.00 3.500% 159,747.50 419,747.50 419,747.50 440,734.88 02/01/2030 265,000.00 3.500% 150,647.50 415,647.50 415,647.50 436,429.88 02/01/2031 275,000.00 3.500% 141,372.50 416,372.50 416,372.50 437,191.13 02/01/2032 285,000.00 3.550% 131,747.50 416,747.50 416,747.50 437,584.88 02/01/2033 295,000.00 3.550% 121,630.00 416,630.00 416,630.00 437,461.50 02/01/2034 305,000.00 3.650% 111,157.50 416,157.50 416,157.50 436,965.38 02/01/2035 320,000.00 3.700% 100,025.00 420,025.00 420,025.00 441,026.25 02/01/2036 330,000.00 3.800% 88,185.00 418,185.00 418,185.00 439,094.25 02/01/2037 340,000.00 3.900% 75,645.00 415,645.00 415,645.00 436,427.25 02/01/2038 355,000.00 3.950% 62,385.00 417,385.00 417,385.00 438,254.25 02/01/2039 370,000.00 4.050% 48,362.50 418,362.50 418,362.50 439,280.63 02/01/2040 385,000.00 4.150% 33,377.50 418,377.50 418,377.50 439,296.38 02/01/2041 400,000.00 4.350% 17,400.00 417,400.00 417,400.00 438,270.00 Total $4,675,000.00 - $1,712,871.28 $6,387,871.28 (125,793.78) $6,262,077.50 $6,575,181.38 Significant Dates Dated 5/15/2025 First Coupon Date 2/01/2026 Yield Statistics Bond Year Dollars $43,874.44 Average Life 9.385 Years Average Coupon 3.9040296% Net Interest Cost (NIC) 4.0318944% True Interest Cost (TIC) 4.0447484% Bond Yield for Arbitrage Purposes 3.8852561% All Inclusive Cost (AIC) 4.2417281% Series 2025A GO CIP Bonds I SINGLE PURPOSE 1 8/28/2024 1 2:13 PM i4'EHLERS IN PUBLIC FINANCE ADVISORS City of Arden Hills, Minnesota $4,690,000 General Obligation CIP Bonds, Series 2025 Assumes Current Market BQ AAA Rates plus 75bps 20 Years Sources & Uses Dated 05/15/2025 1 Delivered 05/15/2025 Sources Of Funds Par Amount of Bonds $4,690,000.00 Total Sources Uses Of Funds Total Underwriter's Discount (1.200%) Costs of Issuance Deposit to Capitalized Interest (CIF) Fund Deposit to Project Construction Fund Rounding Amount Total Uses Series 2025A GO CIP Bonds I SINGLE PURPOSE 1 8/28/2024 1 2:12 PM $4,690,000.00 56,280.00 68,000.00 135,939.56 4,425,000.00 4,780.44 $4,690,000.00 EHLERS City of Arden Hills, Minnesota $4,690,000 General Obligation CIP Bonds, Series 2025 Assumes Current Market BQ AAA Rates plus 75bps 20 Years Net Debt Service Schedule Date Principal Coupon Interest Total P+I CIF Net New D/S Fiscal Total 05/15/2025 - - 02/01/2026 135,939.56 135,939.56 (135,939.56) - 08/01/2026 95,582.50 95,582.50 95,582.50 - 02/01/2027 160,000.00 3.500% 95,582.50 255,582.50 255,582.50 351,165.00 08/01/2027 - - 92,782.50 92,782.50 92,782.50 _ 02/01/2028 170,000.00 3.500% 92,782.50 262,782.50 262,782.50 355,565.00 08/01/2028 - - 89,807.50 89,807.50 89,807.50 - 02/01/2029 175,000.00 3.500% 89,807.50 264,807.50 264,807.50 354,615.00 08/01/2029 - - 86,745.00 86,745.00 86,745.00 - 02/01/2030 180,000.00 3.500% 86,745.00 266,745.00 266,745.00 353,490.00 08/01/2030 - - 83,595.00 83,595.00 83,595.00 - 02/01/2031 185,000.00 3.500% 83,595.00 268,595.00 268,595.00 352,190.00 08/01/2031 - - 80,357.50 80,357.50 80,357.50 - 02/01/2032 195,000.00 3.550% 80,357.50 275,357.50 275,357.50 355,715.00 08/01/2032 - - 76,896.25 76,896.25 76,896.25 - 02/01/2033 200,000.00 3.550% 76,896.25 276,896.25 276,896.25 353,792.50 08/01/2033 - - 73,346.25 73,346.25 73,346.25 - 02/01/2034 205,000.00 3.650% 73,346.25 278,346.25 278,346.25 351,692.50 08/01/2034 - - 69,605.00 69,605.00 69,605.00 - 02/01/2035 215,000.00 3.700% 69,605.00 284,605.00 284,605.00 354,210.00 08/01/2035 - - 65,627.50 65,627.50 65,627.50 - 02/01/2036 220,000.00 3.800% 65,627.50 285,627.50 285,627.50 351,255.00 08/01/2036 - - 61,447.50 61,447.50 61,447.50 - 02/01/2037 230,000.00 3.900% 61,447.50 291,447.50 291,447.50 352,895.00 08/01/2037 - - 56,962.50 56,962.50 56,962.50 - 02/01/2038 240,000.00 3.950% 56,962.50 296,962.50 296,962.50 353,925.00 08/01/2038 - - 52,222.50 52,222.50 52,222.50 - 02/01/2039 250,000.00 4.050% 52,222.50 302,222.50 302,222.50 354,445.00 08/01/2039 - - 47,160.00 47,160.00 47,160.00 - 02/01/2040 260,000.00 4.150% 47,160.00 307,160.00 307,160.00 354,320.00 08/01/2040 - - 41,765.00 41,765.00 41,765.00 - 02/01/2041 270,000.00 4.350% 41,765.00 311,765.00 311,765.00 353,530.00 08/01/2041 - - 35,892.50 35,892.50 35,892.50 - 02/01/2042 280,000.00 4.500% 35,892.50 315,892.50 315,892.50 351,785.00 08/01/2042 - - 29,592.50 29,592.50 29,592.50 - 02/01/2043 295,000.00 4.600% 29,592.50 324,592.50 324,592.50 354,185.00 08/01/2043 - - 22,807.50 22,807.50 22,807.50 - 02/01/2044 305,000.00 4.700% 22,807.50 327,807.50 327,807.50 350,615.00 08/01/2044 - - 15,640.00 15,640.00 15,640.00 - 02/01/2045 320,000.00 4.750% 15,640.00 335,640.00 335,640.00 351,280.00 08/01/2045 - - 8,040.00 8,040.00 8,040.00 - 02/01/2046 335,000.00 4.800% 8,040.00 343,040.00 343,040.00 351,080.00 Total $4,690,000.00 - $2,507,689.56 $7,197,689.56 (135,939.56) $7,061,750.00 - Significant Dates Dated 5/15/2025 First Coupon Date 2/01/2026 Yield Statistics Bond Year Dollars $58,465.11 Average Life 12.466 Years Average Coupon 4.2892069% Net Interest Cost (NIC) 4.3854694% True Interest Cost (TIC) 4.3787402% Bond Yield for Arbitrage Purposes 4.2481600% All Inclusive Cost (AIC) 4.5395776% IRS Form 8038 Net Interest Cost 4.2892069% Weighted Average Maturity 12.466 Years Series 2025A GO CIP Bonds I SINGLE PURPOSE 1 8/28/2024 1 2:13 PM 14EHLERS PUBLIC FINANCE ADVISORS City of Arden Hills, Minnesota $4,690,000 General Obligation CIP Bonds, Series 2025 Assumes Current Market BQ AAA Rates plus 75bps 20 Years Debt Service Schedule 105% of Date Principal Coupon Interest Total P+I CIF Net New D/S Total 02/01/2026 - - 135,939.56 135,939.56 (135,939.56) - - 02/01/2027 160,000.00 3.500% 191,165.00 351,165.00 351,165.00 368,723.25 02/01/2028 170,000.00 3.500% 185,565.00 355,565.00 355,565.00 373,343.25 02/01/2029 175,000.00 3.500% 179,615.00 354,615.00 354,615.00 372,345.75 02/01/2030 180,000.00 3.500% 173,490.00 353,490.00 353,490.00 371,164.50 02/01/2031 185,000.00 3.500% 167,190.00 352,190.00 352,190.00 369,799.50 02/01/2032 195,000.00 3.550% 160,715.00 355,715.00 355,715.00 373,500.75 02/01/2033 200,000.00 3.550% 153,792.50 353,792.50 353,792.50 371,482.13 02/01/2034 205,000.00 3.650% 146,692.50 351,692.50 351,692.50 369,277.13 02/01/2035 215,000.00 3.700% 139,210.00 354,210.00 354,210.00 371,920.50 02/01/2036 220,000.00 3.800% 131,255.00 351,255.00 351,255.00 368,817.75 02/01/2037 230,000.00 3.900% 122,895.00 352,895.00 352,895.00 370,539.75 02/01/2038 240,000.00 3.950% 113,925.00 353,925.00 353,925.00 371,621.25 02/01/2039 250,000.00 4.050% 104,445.00 354,445.00 354,445.00 372,167.25 02/01/2040 260,000.00 4.150% 94,320.00 354,320.00 354,320.00 372,036.00 02/01/2041 270,000.00 4.350% 83,530.00 353,530.00 353,530.00 371,206.50 02/01/2042 280,000.00 4.500% 71,785.00 351,785.00 351,785.00 369,374.25 02/01/2043 295,000.00 4.600% 59,185.00 354,185.00 354,185.00 371,894.25 02/01/2044 305,000.00 4.700% 45,615.00 350,615.00 350,615.00 368,145.75 02/01/2045 320,000.00 4.750% 31,280.00 351,280.00 351,280.00 368,844.00 02/01/2046 335,000.00 4.800% 16,080.00 351,080.00 351,080.00 368,634.00 Total $4,690,000.00 - $2,507,689.56 $7,197,689.56 (135,939.56) $7,061,750.00 $7,414,837.50 Significant Dates Dated First Coupon Date Yield Statistics 5/15/2025 2/01/2026 Bond Year Dollars $58,465.11 Average Life 12.466 Years Average Coupon 4.2892069% Net Interest Cost ( True Interest Cost Bond Yield for Ai All Inclusive Cost Series 2025A GO CIP Bonds I SINGLE PURPOSE 1 8/28/2024 1 2:13 PM 4.3854694% 4.3787402% 4.2481600% 4.5395776% 1;4'EHLERS IN PUBLIC FINANCE ADVISORS Attachment B City of Arden Hills Sep-24 Franchise Fee Options Review - DRAFT2 *All calculations are estimates & may change based upon utility customer counts in any given month Goal: Franchise fee revenue to raise $330,000 per year Current Rate Option Al Option B1 Option C1 Customer Rate Classification - Electric Sep 2024 Residential $ - $ 2.50 $ 2.75 $ 3.00 Small C&I: Non -Demand $ - $ 3.25 $ 3.75 $ 4.00 Small C&I: Demand $ - $ 18.00 $ 20.00 $ 22.00 Large C&I $ - $ 236.00 $ 216.00 $ 194.00 Public Street Lighting $ - $ - $ - $ - Municipal Pumping - ND $ - $ - $ - $ - Municipal Pumping - Demand $ - $ - $ - $ - Total Est. Annual Collection - XE Electric $ - $ 330,723 $ 331,806 $ 330,780 Goal: Franchise fee revenue to raise $395,000 per year Current Rate Option A2 Option B2 Option C2 Customer Rate Classification - Electric Sep 2024 Residential $ - $ 3.00 $ 3.25 $ 3.50 Small C&I: Non -Demand $ - $ 4.00 $ 4.25 $ 4.50 Small C&I: Demand $ - $ 22.25 $ 23.75 $ 25.25 Large C&I $ - $ 279.00 $ 260.00 $ 241.00 Public Street Lighting $ - $ - $ - $ - Municipal Pumping - ND $ - $ - $ - $ - Municipal Pumping - Demand $ - $ - $ - $ - Total Est. Annual Collection - XE Electric $ - $ 395,733 $ 395,589 $ 395,445 Goal: Franchise fee revenue to raise $542,000 per year Current Rate Option A3 Option B3 Option C3 Customer Rate Classification - Electric Sep 2024 Residential $ - $ 3.75 $ 4.00 $ 4.25 Small C&I: Non -Demand $ - $ 5.00 $ 5.25 $ 5.75 Small C&I: Demand $ - $ 27.75 $ 29.00 $ 31.50 Large C&I $ - $ 412.00 $ 342.00 $ 371.00 Public Street Lighting $ - $ - $ - $ - Municipal Pumping - ND $ - $ - $ - $ - Municipal Pumping - Demand $ - $ - $ - $ - Total Est. Annual Collection - XE Electric $ - $ 542,310 $ 542,229 $ 542,430 Attachment C 2025 COMPARTATIVE ANALYSIS -PROPER For comparative purposes, the below scenarios provide an estimate of what it would cost a property owner if 1) a franchise fee were imposed or 2) if a property tax levy increase were imposed, in order to generate $395,000 of revenue for the City. The below tables are based on 2025 estimated property tax values. RESIDENTIAL HOMEOWNERS A $480,900 median residential homeowner would see an increase of: • $3.00 per month on their utility bill under an electric -only franchise fee scenario -or- * $9.21 per month on their property tax bill under a bonding scenario, where property taxes are levied to pay back the bond Note: It would cost a residential homeowner a fixed monthly rate of $3.00 for the next 15 years. If property taxes were levied, residential homeowners would pay more than $9.21 per month for the next 15 years. Property taxes are based on a homeowner's estimated market value, where valuations are likely to increase year over year. MONTHLY Impact on Homeowners Franchise Fee and/or Property Tax Increase Home Cost per Home - $395,000 Revenue Target 2025 Preliminary Market Franchise Fee 2025 Property Tax Property Tax (15.5%) Value Electric Only Increase Increase #of Homes %of Homes $ 195,100 $ 3.00 $ 3.35 $ 6.27 135 5.1% $ 292,700 $ 3.00 $ 5.37 $ 10.17 336 12.7% $ 480,900 $ 3.00 $ 9.21 $ 17.62 983 37.1% $ 542,100 $ 3.00 $ 11.03 $ 20.76 343 12.9% $ 623,400 $ 3.00 $ 12.94 $ 24.46 313 11.8% $ 769,300 $ 3.00 $ 16.37 $ 31.11 344 13.0% $ 920,700 $ 3.00 $ 19.95 $ 38.01 86 3.2% $ 1,027,500 $ 3.00 $ 22.45 $ 42.87 24 0.9% $ 2,230,600 $ 3.00 $ 50.77 $ 97.67 79 3.0% $ 3,443,700 $ 3.00 $ 79.31 $ 152.92 6 0.2% Each monthly scenario would generate $395,000 annually 1 2,649 100.0% 1: In a bonding scenario, the City would generate City revenues to pay back the bond. The payback would include both principal and interest amounts. This bonding scenario assumes a $4.65M bond issued, at a 3.28670% interest rate, paid back over 15 years, with fixed annual payments of $395,000. Total cost to the City is $5,902,755, which includes $1,252,755 of interest costs. MANUFACTURED HOMEOWNERS A $38,100 average manufactured homeowner would see an increase of: • $3.00 per month on their utility bill under an electric -only franchise fee scenario -or- * $1.56 per month on their property tax bill under a bonding scenario, where property taxes are levied to pay back the bond Franchise Fees Page 1 MONTHLY Impact on Manufactured Homeowners (MH) Franchise Fee and/or Property Tax Increase Home Cost per Home - $395,000 Revenue Target 2025 Preliminary Market Franchise Fee 202SProperty Tax Property Tax (15.5%) Value A - Electric Only Increase' Increase $2.30 # of Homes 57 Total $ Cost 67.83 $ 5,400 $ 3.00 $1.19 $ 13,400 $ 3.00 $1.28 $2.48 54 $ 69.12 $ 27,700 $ 3.00 $1.45 $2.80 54 $ 78.30 $ 38,100 $ 3.00 $1.56 $3.02 54 $ 84.24 $ 56,600 $ 3.00 $1.77 $3.43 54 $ 95.58 $ 177,200 $ 3.00 $4.131 $7.77 1 $ 4.13 Each monthlyscenario would generate$395,000annually 1: Includes an equal share of MH Park Land Property Taxes 274 $ 399.20 APARTMENT RENTER A $29,300,000 apartment complex would see an increase of: • $279.00 per month on their utility bill under an electric -only franchise fee scenario, assuming the apartment complex is metered similarly to a commercial property -or- * $2,875.31 per month on their property tax bill under a bonding revenue, where property taxes are levied to pay back the bond. The property tax levy would impact each rental unit differently, based upon number of units per apartment building. Note: The franchise fee increase would be dependent upon how the property is metered. For example, if an apartment building has a single meter, it would be treated as a commercial property and would be assessed the commercial rate. If each unit has a separate meter, then each resident would be assessed the residential rate. The below are estimates only. MONTHLY Impact on Apartment Renters Franchise Fee and/or Property Tax Increase Cost per Complex - $395,000 Revenue Target 2025 Preliminary Cost per Unit Franchise Fee 2025Property Tax Property Tax (15.5%) Property Tax Est. Per Unit Est. #of Market Value A - Electric Only Increase Increase Increase Units Property Name $ 803,600 $ 4.00 $ 79.95 $ 95.44 $ 19.99 4 Meatballs Properties (4-Plex) $ 5,205,400 $ 22.25 $ (35.03) $ 77.36 $ (0.95) 37 Edgewater Estates $ 7,249,900 $ 22.25 $ (277.61) $ (120.22) $ (4.63) 60 Cottage Villas of Arden Hills $ 29,300,000 $ 279.00 $ 2,875.31 $ 3,518.12 $ 19.69 146 New Perspective Senior Living $ 22,549,200 $ 279.00 $ (100.10) $ 394.10 $ (1.03) 97 Round Lake Senior Living $ 37,780,200 $ 279.00 $ 258.71 $ 1,088.21 $ 0.63 410 Presbyterian Homes AH Inc Each monthly scenario would generate $395,000 annually and $ 5.62 Average Cost Per Unit assumes a commercial rate is assessed Franchise Fees Page 2 COMMERCIAL PROPERTY OWNERS In order to generate $395,000 of revenue for the City, a $9,625,600 commercial property owner would see an increase of: • $22.25 per month on their utility bill under an electric -only franchise fee scenario —or- * $165.00 per month on their property tax bill under a bonding revenue, where property taxes are levied to pay back the bond Note: The franchise fee increase would be dependent upon the Public Utility Commissions' classification of the commercial property, which is based on utility usage. The below are estimates only. MONTHLY Impact on Commercial Properties Franchise Fee and/or Property Tax Increase Cost per Property -=-=__,eee Revenue Target 2025 Preliminary Market Franchise Fee 2025 Property Tax Property Tax (15.5%) Value A - Electric Only Increase Increase Property Name $ 343,500 $ 4.00 $ 5.21 $ 12.40 Arden Ridge Office Park $ 1,861,100 $ 22.25 $ 31.34 $ 74.18 Chick-fil-A $ 3,682,500 $ 22.25 $ 62.70 $ 148.32 Scherer Bros. Lumberyard, Sales & Design Center $ 9,625,600 $ 22.25 $ 165.00 $ 390.22 Office Building 3+Stories (HealthPartners, DaVita, etc.) $ 21,408,700 $ 279.00 $ 367.80 $ 869.80 Land O' Lakes $ 22,141,000 $ 279.00 $ - $ - North Heights Lutheran Church $ 50,502,100 $ 279.00 $ 868.55 $ 2,053.96 Boston Scientific $ 114,557,000 $ 279.00 $ - $ Bethel University Each monthly scenario would generate $395,000 annually Franchise Fees Page 3 Attachment D ELECTRIC FRANCHISE ORDINANCE ORDINANCE NO. CITY OF ARDEN HILLS, RAMSEY COUNTY, MINNESOTA AN ORDINANCE GRANTING TO NORTHERN STATES POWER COMPANY, A MINNESOTA CORPORATION, ITS SUCCESSORS AND ASSIGNS, PERMISSION TO CONSTRUCT, OPERATE, REPAIR AND MAINTAIN IN THE CITY OF ARDEN HILLS, MINNESOTA, AN ELECTRIC DISTRIBUTION SYSTEM AND TRANSMISSION LINES, INCLUDING NECESSARY POLES, LINES, FIXTURES AND APPURTENANCES, FOR THE FURNISHING OF ELECTRIC ENERGY TO THE CITY, ITS INHABITANTS, AND OTHERS, AND TO USE THE PUBLIC GROUNDS AND PUBLIC WAYS OF THE CITY FOR SUCH PURPOSES. THE CITY COUNCIL OF THE CITY OF ARDEN HILLS, RAMSEY COUNTY, MINNESOTA, ORDAINS: SECTION 1. DEFINITIONS. For purposes of this Ordinance, the following capitalized terms listed in alphabetical order shall have the following meanings: 1.1 City. The City of Arden Hills, County of Ramsey, State of Minnesota. 1.2 City Utility System. Facilities used for providing non -energy related public utility service owned or operated by City or agency thereof, including sewer and water service, but excluding facilities for providing heating, lighting or other forms of energy. 1.3 Commission. The Minnesota Public Utilities Commission, or any successor agency or agencies, including an agency of the federal government, which preempts all, or part of the authority to regulate electric retail rates now vested in the Minnesota Public Utilities Commission. 1.4 Company. Northern States Power Company, a Minnesota corporation, its successors and assigns. 1.5 Electric Facilities. Electric transmission and distribution towers, poles, lines, guys, anchors, conduits, fixtures, and necessary appurtenances owned or operated by Company for the purpose of providing electric energy for public use. 1.6 Notice. A written notice served by one party on the other party referencing one or more provisions of this Ordinance. Notice to Company shall be mailed to the General Counsel, 401 Nicollet Mall, 8th Floor, Minneapolis, MN 55401. Notice to the City shall be mailed to the City Administrator, 1245 W. Highway 96, Arden Hills, MN 55112. Either party may change its respective address for the purpose of this Ordinance by written notice to the other party. 1.7 Public Ground. Land owned by the City for park, open space or similar purpose, which is held for use in common by the public. 1 1.8 Public Way. Any street, alley, walkway or other public right-of-way within the City. SECTION 2. ADOPTION OF FRANCHISE. 2.1 Grant of Franchise. City hereby grants Company, for a period of 20 years from the date passed and approved by the City, the right to transmit and furnish electric energy for light, heat, power and other purposes for public and private use within and through the limits of the City as its boundaries now exist or as they may be extended in the future. For these purposes, Company may construct, operate, repair and maintain Electric Facilities in, on, over, under and across the Public Grounds and Public Ways of City, subject to the provisions of this Ordinance. Company may do all reasonable things necessary or customary to accomplish these purposes, subject, however, to such reasonable regulations as may be imposed by the City pursuant to ordinance and to the further provisions of this franchise agreement. 2.2 Effective Date, Written Acceptance. This franchise agreement shall be in force and effect from and after passage of this Ordinance, its acceptance by Company, and its publication as required by law. The City, by Council resolution, may revoke this franchise agreement if Company does not file a written acceptance with the City within 90 days after publication. 2.3 Service and Rates. The service to be provided and the rates to be charged by Company for electric service in City are subject to the jurisdiction of the Commission. The area within the City in which Company may provide electric service is subject to the provisions of Minnesota Statutes, Section 216B.40. 2.4 Publication Expense. The expense of publication of this Ordinance will be paid by City and reimbursed to City by Company. 2.5 Dispute Resolution. If either party asserts that the other party is in default in the performance of any obligation hereunder, the complaining parry shall notify the other party of the default and the desired remedy. The notification shall be written. Representatives of the parties must promptly meet and attempt in good faith to negotiate a resolution of the dispute. If the dispute is not resolved within 30 days of the written notice, the parties may jointly select a mediator to facilitate further discussion. The parties will equally share the fees and expenses of this mediator. If a mediator is not used, or if the parties are unable to resolve the dispute within 30 days after first meeting with the selected mediator, either parry may commence an action in District Court to interpret and enforce this franchise or for such other relief as may be permitted by law or equity for breach of contract, or either parry may take any other action permitted by law. SECTION 3. LOCATION, OTHER REGULATIONS. 3.1 Location of Facilities. Electric Facilities shall be located, constructed and maintained so as not to interfere with the safety and convenience of ordinary travel along and over Public Ways and so as not to disrupt normal operation of any City Utility System previously installed therein. Electric Facilities shall be located on Public Grounds as determined by the City. Company's construction, reconstruction, operation, repair, maintenance and location of Electric Facilities shall be subject to permits if required by separate ordinance and to other reasonable regulations of the City to the extent not inconsistent with the terms of this franchise agreement. Company may abandon OA underground Electric Facilities in place, provided at the City's request, Company will remove abandoned metal or concrete encased conduit interfering with a City improvement project, but only to the extent such conduit is uncovered by excavation as part of the City improvement project. 3.2 Field Locations. Company shall provide field locations for its underground Electric Facilities within City consistent with the requirements of Minnesota Statutes, Chapter 216D. 3.3 Street Openings. Company shall not open or disturb any Public Ground or Public Way for any purpose without first having obtained a permit from the City, if required by a separate ordinance, for which the City may impose a reasonable fee subject to Section 9.1 of this Ordinance. Permit conditions imposed on Company shall not be more burdensome than those imposed on other utilities for similar facilities or work. Company may, however, open and disturb any Public Ground or Public Way without permission from the City where an emergency exists requiring the immediate repair of Electric Facilities. In such event Company shall notify the City by telephone to the office designated by the City as soon as practicable. Not later than the second working day thereafter, Company shall obtain any required permits and pay any required fees. 3.4 Restoration. After undertaking any work requiring the opening of any Public Ground or Public Way, Company shall restore the same, including paving and its foundation, to as good a condition as formerly existed, and shall maintain any paved surface in good condition for one year thereafter. The work shall be completed as promptly as weather permits, and if Company shall not promptly perform and complete the work, remove all dirt, rubbish, equipment and material, and put the Public Ground or Public Way in the said condition, the City shall have, after demand to Company to cure and the passage of a reasonable period of time following the demand, but not to exceed five days, the right to make the restoration at the expense of Company. Company shall pay to the City the cost of such work done for or performed by the City. This remedy shall be in addition to any other remedy available to the City for noncompliance with this Section 3.4, but the City hereby waives any requirement for Company to post a construction performance bond, certificate of insurance, letter of credit or any other form of security or assurance that may be required, under a separate existing or future ordinance of the City, of a person or entity obtaining the City's permission to install, replace or maintain facilities in a Public Way. 3.5 Avoid Damage to Electric Facilities. Nothing in this Ordinance relieves any person from liability arising out of the failure to exercise reasonable care to avoid damaging Electric Facilities while performing any activity. 3.6 Notice of Improvements. The City must give Company reasonable notice of plans for improvements to Public Grounds or Public Ways where the City has reason to believe that Electric Facilities may affect or be affected by the improvement. The notice must contain: (i) the nature and character of the improvements, (ii) the Public Grounds and Public Ways upon which the improvements are to be made, (iii) the extent of the improvements, (iv) the time when the City will start the work, and (v) if more than one Public Ground or Public Way is involved, the order in which the work is to proceed. The notice must be given to Company a sufficient length of time in advance of the actual commencement of the work to permit Company to make any necessary additions, alterations or repairs to its Electric Facilities. 3.7 Shared Use of Poles. Company shall make space available on its poles or towers for City fire, water utility, police or other City facilities upon terms and conditions acceptable to Company k-1 whenever such use will not interfere with the use of such poles or towers by Company, by another electric utility, by a telephone utility, or by any cable television company or other form of communication company. In addition, the City shall pay for any added cost incurred by Company because of such use by City. SECTION 4. RELOCATIO 4.1 Relocation of Electric Facilities in Public Ways. If the City determines to vacate a Public Way for a City improvement project, or at City's cost to grade, regrade, or change the line of any Public Way, or construct or reconstruct any City Utility System in any Public Way, it may order Company to relocate its Electric Facilities located therein if relocation is reasonably necessary to accomplish the City's proposed public improvement. Except as provided in Section 4.3, Company shall relocate its Electric Facilities at its own expense. The City shall give Company reasonable notice of plans to vacate for a City improvement project, or to grade, regrade, or change the line of any Public Way or to construct or reconstruct any City Utility System. If a relocation is ordered within five years of a prior relocation of the same Electric Facilities, which was made at Company expense, the City shall reimburse Company for non -betterment costs on a time and material basis, provided that if a subsequent relocation is required because of the extension of a City Utility System to a previously unserved area, Company may be required to make the subsequent relocation at its expense. Nothing in this Ordinance requires Company to relocate, remove, replace or reconstruct at its own expense its Electric Facilities where such relocation, removal, replacement or reconstruction is solely for the convenience of the City and is not reasonably necessary for the construction or reconstruction of a Public Way or City Utility System or other City improvement. 4.2 Relocation of Electric Facilities in Public Ground. City may require Company, at Company's expense, to relocate or remove its Electric Facilities from Public Ground upon a finding by City that the Electric Facilities have become or will become a substantial impairment to the existing or proposed public use of the Public Ground. 4.3 Projects with Federal Funding. City shall not order Company to remove or relocate its Electric Facilities when a Public Way is vacated, improved or realigned for a right-of-way project or any other project which is financially subsidized in whole or in part by the Federal Government or any agency thereof, unless the reasonable non -betterment costs of such relocation are first paid to Company. The City is obligated to pay Company only for those portions of its relocation costs for which City has received federal funding specifically allocated for relocation costs in the amount requested by the Company, which allocated funding the City shall specifically request. Relocation, removal or rearrangement of any Company Electric Facilities made necessary because of a federally - aided highway project shall be governed by the provisions of Minnesota Statutes, Section 161.46, as supplemented or amended. It is understood that the rights herein granted to Company are valuable rights. 4.4 No Waiver. The provisions of this franchise apply only to facilities constructed in reliance on a franchise from the City and shall not be construed to waive or modify any rights obtained by Company for installations within a Company right-of-way acquired by easement or prescriptive right before the applicable Public Ground or Public Way was established, or Company's rights under state or county permit. rd SECTION 5. TREE TRIMMING. Company may trim all trees and shrubs in the Public Grounds and Public Ways of City to the extent Company finds necessary to avoid interference with the proper construction, operation, repair and maintenance of any Electric Facilities installed hereunder, provided that Company shall save the City harmless from any liability arising therefrom, and subject to permit or other reasonable regulation by the City. SECTION 6. INDEMNIFICATION. 6.1 Indemnity of City. Company shall indemnify, keep and hold the City free and harmless from any and all liability on account of injury to persons or damage to property occasioned by the construction, maintenance, repair, inspection, the issuance of permits, or the operation of the Electric Facilities located in the Public Grounds and Public Ways. The City shall not be indemnified for losses or claims occasioned through its own negligence except for losses or claims arising out of or alleging the City's negligence as to the issuance of permits for, or inspection of, Company's plans or work. The City shall not be indemnified if the injury or damage results from the performance in a proper manner, of acts reasonably deemed hazardous by Company, and such performance is nevertheless ordered or directed by City after notice of Company's determination. 6.2 Defense of Citv. In the event a suit is brought against the City under circumstances where this agreement to indemnify applies, Company at its sole cost and expense shall defend the City in such suit if written notice thereof is promptly given to Company within a period wherein Company is not prejudiced by lack of such notice. If Company is required to indemnify and defend, it will thereafter have control of such litigation, but Company may not settle such litigation without the consent of the City, which consent shall not be unreasonably withheld. This section is not, as to third parties, a waiver of any defense or immunity otherwise available to the City and Company, in defending any action on behalf of the City, shall be entitled to assert in any action every defense or immunity that the City could assert in its own behalf. SECTION 7. VACATION OF PUBLIC WAYS. The City shall give Company at least two weeks prior written notice of a proposed vacation of a Public Way. Except where required for a City improvement project, the vacation of any Public Way, after the installation of Electric Facilities, shall not operate to deprive Company of its rights to operate and maintain such Electric Facilities, until the reasonable cost of relocating the same and the loss and expense resulting from such relocation are first paid to Company. In no case, however, shall City be liable to Company for failure to specifically preserve a right-of-way under Minnesota Statutes, Section 160.29. SECTION 8. CHANGE IN FORM OF GOVERNMENT. Any change in the form of government of the City shall not affect the validity of this Ordinance. Any governmental unit succeeding the City shall, without the consent of Company, succeed to all of the rights and obligations of the City provided in this Ordinance. 5 SECTION 9. FRANCHISE FEE. 9.1 Fee Schedule. During the term of the franchise hereby granted, and in lieu of any permit or other fees being imposed on Company, the City may impose on Company a franchise fee by collecting the amounts indicated in a Fee Schedule set forth in a separate ordinance from each customer in the designated Company Customer Class. The parties have agreed that the franchise fee collected by the Company and paid to the City in accordance with this Section 9 shall not exceed the following amounts. Class Residential Sm C & I — Non -Derr Sm C & I — Demand Large C & I Public Street Ltg Muni Pumping —N/D Muni Pumping — Dem Fee Per Premise Per Month 9.2 Separate Ordinance. The franchise fee shall be imposed by a separate ordinance duly adopted by the City Council, which ordinance shall not be adopted until at least 90 days after written notice enclosing such proposed ordinance has been served upon Company by certified mail. The fee shall not become effective until the beginning of a Company billing month at least 90 days after written notice enclosing such adopted ordinance has been served upon Company by certified mail. Section 2.5 shall constitute the sole remedy for solving disputes between Company and the City in regard to the interpretation of, or enforcement of, the separate ordinance. No action by the City to implement a separate ordinance will commence until this Ordinance is effective. A separate ordinance which imposes a lesser franchise fee on the residential class of customers than the maximum amount set forth in Section 9.1 above shall not be effective against Company unless the fee imposed on each other customer classification is reduced proportionately in the same or greater amount per class as the reduction represented by the lesser fee on the residential class. 9.3 Terms Defined. For the purpose of this Section 9, the following definitions apply: 9.3.1 "Customer Class" shall refer to the classes listed on the Fee Schedule and as defined or determined in Company's electric tariffs on file with the Commission. 9.3.2 "Fee Schedule" refers to the schedule in Section 9.1 setting forth the various customer classes from which a franchise fee would be collected if a separate ordinance were implemented immediately after the effective date of this franchise agreement. The Fee Schedule in the separate ordinance may include new Customer Class added by Company to its electric tariffs after the effective date of this franchise agreement. 9.4 Collection of the Fee. The franchise fee shall be payable quarterly and shall be based on the amount collected by Company during complete billing months during the period for which payment is to be made by imposing a surcharge equal to the designated franchise fee for the applicable customer classification in all customer billings for electric service in each class. The payment shall be Con due the last business day of the month following the period for which the payment is made. The franchise fee may be changed by ordinance from time to time; however, each change shall meet the same notice requirements and not occur more often than annually and no change shall require a collection from any customer for electric service in excess of the amounts specifically permitted by this Section 9. The time and manner of collecting the franchise fee is subject to the approval of the Commission. No franchise fee shall be payable by Company if Company is legally unable to first collect an amount equal to the franchise fee from its customers in each applicable class of customers by imposing a surcharge in Company's applicable rates for electric service. Company may pay the City the fee based upon the surcharge billed subject to subsequent reductions to account for uncollectibles, refunds and correction of erroneous billings. Company agrees to make its records available for inspection by the City at reasonable times provided that the City and its designated representative agree in writing not to disclose any information which would indicate the amount paid by any identifiable customer or customers or any other information regarding identified customers. 9.5 Equivalent Fee Requirement. The separate ordinance imposing the fee shall not be effective against Company unless it lawfully imposes and the City monthly or more often collects a fee or tax of the same or greater equivalent amount on the receipts from sales of energy within the City by any other energy supplier, provided that, as to such a supplier, the City has the authority to require a franchise fee or to impose a tax. The "same or greater equivalent amount" shall be measured, if practicable, by comparing amounts collected as a franchise fee from each similar customer, or by comparing, as to similar customers the percentage of the annual bill represented by the amount collected for franchise fee purposes. If the Company specifically consents in writing to a franchise or separate ordinance collecting or failing to collect a fee from another energy supplier in contravention of this Section 9.5, the foregoing conditions will be waived to the extent of such written consent. SECTION 10. PROVISIONS OF ORDINANCE. 10.1 Severability. Every section, provision, or part of this Ordinance is declared separate from every other section, provision, or part and if any section, provision, or part shall be held invalid, it shall not affect any other section, provision, or part. Where a provision of any other City ordinance conflicts with the provisions of this Ordinance, the provisions of this Ordinance shall prevail. 10.2 Limitation on Applicability. This Ordinance constitutes a franchise agreement between the City and Company as the only parties, and no provision of this franchise shall in any way inure to the benefit of any third person (including the public at large) so as to constitute any such person as a third party beneficiary of the agreement or of any one or more of the terms hereof, or otherwise give rise to any cause of action in any person not a party hereto. 7 SECTION 11. AMENDMENT PROCEDURE. Either party to this franchise agreement may at any time propose that the agreement be amended to address a subject of concern and the other party will consider whether it agrees that the amendment is mutually appropriate. If an amendment is agreed upon, this Ordinance may be amended at any time by the City passing a subsequent ordinance declaring the provisions of the amendment, which amendatory ordinance shall become effective upon the filing of Company's written consent thereto with the City Clerk within 90 days after the date of final passage by the City of the amendatory ordinance. SECTION 12. PREVIOUS FRANCHISES SUPERSEDED. This franchise supersedes any previous electric franchise granted to Company or its predecessor. Passed and approved: , 20_. Attest: City Clerk Date Published: Mayor AGENDA ITEM - 3B 'It EN HILLS MEMORANDUM DATE: October 14, 2024 TO: Honorable Mayor and City Councilmembers Jessica Jagoe, Interim City Administrator FROM: T.J. Hofer, Consultant Planner SUBJECT: Zoning Code Amendments —Chapter 13, Section 1305, 1320, 1325 Cannabis Zoning Standards Discussion Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Council Should Consider The City Council should discuss and provide direction on the draft zoning standards for cannabis uses. Zoning Code Text Amendments In 2023, cannabis was legalized for recreational use and the sale, possession, use, and growth of cannabis was decriminalized. The Office of Cannabis Management (OCM) is currently drafting rules and standards for licensing and use of facilities that will deal with cannabis. The OCM recently closed the application period of Social Equity Applicants and received over 1,800 applications. Licenses are anticipated to be issued shortly after the rules from OCM are finalized in 2025. A considerable amount of changes to the City Code will be required to address the registration of cannabis businesses and the use of cannabis, however, the zoning ordinance is specifically used to control for the time, place, and manner of the operations of a cannabis business provided that such restrictions do not prohibit the establishment or operation of cannabis businesses. Notably, if the City wishes to limit the amount of registrations for cannabis retail businesses within the City, this should not be done in the zoning ordinance, but in the section that establishes standards for registration. Cannabis Businesses and Uses Minnesota State Statute sets a definition for the term "cannabis business." The use of this term means the following uses: Page 1 of 6 (1) cannabis microbusiness; (2) cannabis mezzobusiness; (3) cannabis cultivator; (4) cannabis manufacturer; (5) cannabis retailer; (6) cannabis wholesaler; (7) cannabis transporter; (8) cannabis testing facility; (9) cannabis event organizer; (10) cannabis delivery service; (11) medical cannabis cultivator; (12) medical cannabis processor; (13) medical cannabis retailer; and (14) medical cannabis combination business. These "businesses" correlate with the types of licenses that will be available from the OCM. Without amendments to the Zoning Ordinance, all cannabis uses are considered permitted. In terms of zoning, we can narrow this list by looking at what activity is a part of each type of cannabis business. Use Grow Sell to M p p U � O a O O a U pq Microbusiness X X X X X X Mezzobusiness X X X X X X Cultivator X X X X X a� Manufacturer X X X a� Retailer X Wholesaler X a Testing X Event X X Transporter NA Delivery Services NA Microbusiness and mezzobusinesses are the two unique use names within cannabis. These uses can be compared to something like a small winery or brewery; however, on -site consumption of intoxicating products is prohibited. Microbusinesses and mezzobusinesses are allowed to cultivate, manufacture/process, package, and sell with their license. Businesses licensed as microbusinesses or mezzobusinesses can operate multiple locations and the cultivation and manufacturing part of the license can be located separately from the retail location. As such, the uses may have multiple parts of a singular building that make up a single structure such as a warehouse type facility for Page 2 of 6 storage and processing and a greenhouse for cultivation, but these all serve the principal use of microbusiness or mezzobusiness. Registration v. Licensing The OCM will issue and manage licenses for cannabis businesses. Retail operations for cannabis must register with local units of government before making retail sales to customers or patients. Currently, local government units are required to allow for one registration for every 12,500 residents. The statute specifies these registrants as cannabis retailers, cannabis mezzobusinesses with a retail operations endorsement, and cannabis microbusinesses with a retail operations endorsement. This minimum of one applies only to cannabis retailer registration. It is currently unclear if the City will be able to limit non -retailer uses to any capacity, however, staff believes uses that are not required to register cannot be prohibited. Draft Zoning Standards The first draft of rules from the OCM addresses many of the operational challenges related to cannabis such as security, testing, and tracking product through the commercial businesses. There are gaps left by the OCM's first draft that need to be addressed by local municipalities such as setbacks, odor control, screening, and nuisances. The OCM is still in the process of developing the final rules, so the below zoning standards are presented as a draft of what zoning regulations regarding cannabis uses may look like. Staff will continue to monitor the activity of OCM to ensure that the standards presented to the Council reflect and work with the final rules from OCM. The proposed standards have been drafted based on the first draft of rules that the OCM published on July 30, 2024 and the City Council comments from the September 23, 2024, work session. The future ordinance amendment may change based on the future changes to the rule that the OCM has proposed. The standards include: • Restrictions for cannabis uses, based on business type, based on zoning district • A 1,000 ft. setback from schools as allowed by Minnesota State Statue • Use specific standards for indoor cultivation of cannabis -related to character area standards, odors, screening, lighting, and water management. • Use specific standards for cannabis microbusiness including consumption standards and references to other sections. • Use specific standards for cannabis mezzobusiness including references to other sections. • Use specific standards for light manufacturing, cannabis -related to character area standards, warehousing, odors, screening, waste storage, lighting, and water management. In reviewing these standards, the Council should consider various questions such as: • Do the permitted districts reflect the vision of the City? • Should the 1,000 ft. setback apply to cannabis uses solely, or cannabis and hemp business? • Does the City want to require odor control measures that limit the odor to the property line or the exterior of the facility? • Are there hours of operations the City wants to impose on cannabis related businesses? • Does the City want to regulate cannabis testing facilities separately from other "Research and development facilities," which has more permissive standards? Page 3 of 6 Two aspects of cannabis uses have known potential for nuisances which are not addressed in the first draft of rules from OCM: odor and lighting. The draft language includes language to address these potential nuisances. Odor Control OCM has left odor control to be controlled at the local level aside from Minnesota Pollution Control Standards for nuisances. The draft standards include a condition that odor control systems be installed for uses where odor would be expected as part of the regular businesses (indoor cultivation, manufacturing, wholesaling). In researching standards for this, some communities require verification from a qualified industrial hygienist that appropriate odor control systems have been installed and continual monitoring was required. If the Council wished to require this, the standards should be modified to reflect this. Lighting All uses will be required to meet the standards within the City Code for outdoor lighting, however, indoor cultivation has a specific need for lighting to facilitate plant growth. Indoor cultivation done in greenhouses will have semi -transparent structures and during the winter months, the indoor illumination needed for the plants to grow will be obvious from outside of the structure. In researching the use in other communities, it was found that 4:30 a.m. and 10:00 p.m. was a time frame that was used to allow this. Cannabis requires a lighting cycle of 12 hours of light and 12 hours of darkness for ideal growing conditions. This time frame could be more limited if the Council desired. Outdoor Prohibition As part of a cultivator, microbusiness, and mezzobusiness license, cultivation is allowed and can either be indoor cultivation (greenhouses, hydroponics) or outdoor cultivation. Outdoor cultivation is not expected to be largely utilized as the growing conditions in Minnesota are not optimal for cannabis. Regardless, as the City has no agricultural districts or uses within it, the draft language includes a prohibition for outdoor uses. Cannabis Testing Facilities The City may want to consider regulating cannabis testing facilities separately from the "Research and development facilities" use that exists within the code. If development standards for "Research and development facilities" were amended, any new standard could make existing uses within the City legally nonconforming if they did not comply with the amended standards. To avoid this, cannabis testing facilities would be listed as its own use rather than for "Research and development facilities" and would be subject to the same standards as other cannabis uses. Review of Questions from September 23, 2024 Work Session Staff have reviewed and researched some questions that were posed at the September 23, 2024, Work Session. Will cannabis businesses be part of existing businesses or standalone businesses? Most cities are preparing or passing language that would allow for standalone uses. Further legal review would be needed if the Council wished to only allow cannabis businesses as accessory uses. Staff s current understanding of the statutes would not allow for the uses to be only allowed as accessory uses. The uses could be allowed as accessory uses as well. Page 4 of 6 Who ensures potency of product? The OCM is establishing a statewide monitoring system that will track all cannabis products. Manufacturing of product requires recordkeeping that includes the date the activity was completed; the name of the worker completing the activity, or the name for the responsible worker when more than one worker; the process step or description of the activity that was completed; relevant process control measurements; and batch number. Can events be prohibited? Staff believes that events can be prohibited, however, this should be done outside of zoning and through an event permit of some kind. For reference, Minnesota State Statute 342,39 Cannabis Event Organizer Licensing Subd. 2(7) requires that an event organizer provide proof of local approval for a cannabis event. The City could not prohibit a cannabis event organizer from establishing a business in the City, but staff believes that the use would function like an office with regulations applied by the OCM. • Can municipalities establish cannabis retail stores? Municipalities can establish municipal cannabis retail stores, however, if the City operates a municipal store, one other registration must be allowed. Could a zoning overlay be implemented to address the uses? An overlay district could be used to implement the zoning standards, however, what the boundaries and applicability of the overlays would need to be determined. Most cities that staff have reviewed are incorporating zoning standards into existing districts. Can the City impose operational procedures for businesses such as multiple point ID verification? Minnesota State Statute 342.13 establishes standards for local control and states: o A local unit of government may not prohibit the possession, transportation, or use of cannabis flower, cannabis products, lower potency hemp edibles, or hemp - derived consumer products authorized under this chapter. o Except as provided in section 342.22, a local unit of government may not prohibit the establishment or operation of a cannabis business licensed under this chapter. o A local unit of government may adopt reasonable restrictions on the time, place, and manner of the operation of a cannabis business provided that such restrictions do not prohibit the establishment or operation of cannabis businesses. The City may impose standards for the manner of the operation of a cannabis business. If the Council has direct input as to what operation should look like, staff will research those standards and provide an evaluation on the reasonableness and a report on if the OCM regulates the manner of operation. Currently the OCM draft rules regulates sale by the following: Subp. 2. Age verification. A. Retailers must confirm that individuals within the retail area are 21 years of age or enrolled in the medical cannabis patient registry — or their registered caregivers. B. Retailers must confirm an individual's age or enrollment in the medical cannabis patient registry at the time of sale of any item regulated by the office. Page 5 of 6 C. Retailers must confirm individuals age using one of the documents provided for in Minnesota Statutes, section 342.27, subdivision 4(b). Minnesota State Statute 342.27 Subd. 4(b) requires the following: b) Proof of age may be established only by one of thefollowing: (1) a valid driver's license or identification card issued by Minnesota, another state, or a province of Canada, and including the photograph and date of birth of the licensed person; (2) a valid Tribal identification card as defined in section 171.072, paragraph (b); (3) a valid passport issued by the United States; (4) a valid instructional permit issued under section 171.05 to a person of legal age to purchase adult -use cannabis flower or adult -use cannabis products, which includes a photograph and the date of birth of the person issued the permit; or (5) in the case of a foreign national, by a valid passport. Is registration tied to all owners and operators of a registration like tobacco? Registration is directly tied to the license issued by the OCM. The City's ordinance for cannabis registration would likely address this question. Criteria has not been developed for the registration portion of cannabis use and will be considered as part of future discussions. Discussion Staff is looking for direction from the City Council on the draft ordinance language for cannabis uses. Budget Impact N/A Attachments A) Draft Ordinance Amendment for Cannabis Zoning Standards B) City Map Cannabis Setback Page 6 of 6 Attachment A 'It -ARPEN HILLS ORDINANCE NO.2024-XXX CITY OF ARDEN HILLS RAMSEY COUNTY, MINNESOTA AN ORDINANCE AMENDING CHAPTER 13, ZONING CODE, SECTION 1305, 1320, AND 1325 OF THE ARDEN HILLS CITY CODE THE CITY COUNCIL OF THE CITY OF ARDEN HILLS, MINNESOTA, ORDAINS: A* SECTION 1. Chapter 13 - Zoning Code, Section 1305 — Rules, Scope, Interpretation, & Definitions, subsection 1325.04 Definitions, is hereby amended by deleting strikethfougk language and adding the underlined language as follows: • Agriculture, Commercial Outdoor Cannabis. See "Cannabis cultivation". • Agriculture, Commercial Indoor Cannabis. See "Cannabis cultivation". • Cannabis cultivation. Growing cannabis plants from seed or immature plant to mature plant, harvesting the cannabis flower from a mature plant, and packaging and labeling immature cannabis plants and seedlings and cannabis flower for sale. • Cannabis, Mezzobusiness. A cannabis business that conducts an oper pursuant to Minnesota Statute Section 342.29, as it may be amended. • Cannabis, Microbusiness. A cannabis business that conducts an operation pursuant to Minnesota Statute Section 342.28. as it may be amended. • Cannabis sales. The sale of cannabis plants and seedlings, adult -use cannabis flower. and adult use cannabis nroducts directiv to consumers. • Light Manufacturing, Lower -Potency HeMp Edible. A hemp business that conducts an operation pursuant to Minnesota Statute Section 342.45, as it may be amended. • Lower -Potency HeMp Edible sales: The sale of lower -potency heMp edibles, that have been obtained from a licensed Minnesota cannabis microbusiness, cannabis mezzobusiness, cannabis manufacturer, cannabis wholesaler, or lower -potency hemp edible manufacturer, directly to consumers M h III III III III III III III III UI III III III III III III III III II I A III III III III III III III III II I UI III III III UI UI III UI UI UI III III III UI UI III UI UI ,~ UI III III III UI UI III UI UI I ii ii UI UI U UI UI UI UI ii ii U UI UI UI ii I ii U I UI UI UI ii ii I U � III U U UI III III III III III III II III II III II III II III II III II QI U III II II II A � III III III III III III III III II I �o N� III III III III III III III III II I i U cn cnr cl C, .nr x a cd 5� SECTION 3. Chapter 13 - Zoning Code, Section 1325 — General Regulation, subsection 1325.047 is hereby amended by deleting stfikedffetigh language and adding the underlined language as follows: 1325.047 Cannabis Uses Conditional Use Permit Criteria. Subd. 1 Applicability The standards within this subsection shall apply to the following uses:. A. Agriculture, Commercial Cannabis B. Cannabis sales C. Cannabis, Mezzobusiness D. Cannabis, Microbusiness E. Light Manufacturing, Cannabis 4 F. Light Manufacturing, Lower -Potency Herqp Edible G. Wholesaling, Cannabis Subd. 2 Setbacks %h6 cannabis use must be setback 1.000 feet from schools as established by Minnesota Statute Section 342.13 (c). Subd. 3 Development Standards A. Must be licensed by the State of Minnesota and in compliance with the standards set by Minnesota Statutes, Minnesota Rules, and the Office of Cannabis Management. B. The facility shall be secured as required by Minnesota Statutes, Minnesota Rules, and the Office of Cannabis Management. C. Outdoor operations are prohibited. D. The facility shall not produce noxious or nuisance causing odors, subject to the following conditions: 1. The facility shall be ventilated so that all odors cannot be detected by a person with a normal sense of smell at the exterior of the facility or at any adjoining use or proppAL. 2. Growing cannabis must comply with all applicable laws and shall not produce noxious or dangerous gases or odors or otherwise create a danger to any person or entity in or near the facilities. 3. An odor maintenance plan must be submitted to the City and qpproved b. the City 4. At the City Council's discretion, the applicant ma,, b�quired to provide plans that show appropriate odor control systems so as not to produce any noxious or dangerous gases or odors or create any to any person or entity in or near the facility. E. All mechanical, odor suppression equipment, and trash enclosures must be screened. F. Outdoor storage of containers, pallets, waste/recycle containers, etc. is prohibited. G. Ling 1. All site lighting must meet City Code requirements. All light fixtures must be downward directed with cut-offs and be architecturally designed to match the overall design of the building. 2. The specifications of all light fixtures must be provided to the City with the application for a conditional use permit. 3. A photometric plan must be submitted to the City with the application for a conditional use permit indicating light measure at the property. line. 4. Lighting within a greenhouse is permitted between the hours of 4:30 a.m. and 10:00 p.m. Lighting at the site property lines shall not exceed 1.0 foot-candles at an., time. H. Water and Wastewater (414MM 1. Management of wastewater shall be in accordance with the Office of Cannabis Management, Minnesota Pollution Control Agency, or local ordinances. Where multiple standards exist, the more restrictive of the standards shall apply. 2. Water use within the site shall be designed to maximize the amount of water reuse _possible. I. aim Signs shall be in compliance with the Office of Cannabis Management and the CitX Code. Whenever a more restrictive standard exists, the more restrictive standard shall M kiy. SECTION 4. This Ordinance shall become effective immediately upon its passage and publication according to law. A Summary of this Ordinance will be published in accordance with state statute. PASSED and ADOPTED this City of Arden Hills, Minnesota. ATTEST: Julie Hanson, City Clerk day of , 2024, by the City Council of the CITY OF ARDEN HILLS David Grant, Mayor W a rn h4 m z� 1 � z p,�y u uno ,(aswe aano 4LL�' VI MS31o0 W %ll N S - �,d 000 Z0 V/ wal3 swe!IIIM I I I voa�� . y med ulE 000' l - aagna Aepuooeg isod ! udalsam4ld0N to fl a� �000' 1 - iagns Ioo4os Zl-N O ��a any,alem�P3, d 1 PPa4�e a i' tlo3� i(eMaoe�O� ,:� AepuooeS isod V , 6u 1 FFFFM WW _ Tj"`V/.H sloo4osJ9410 0 Q a a 10040S /uepuooaS 0 u S8a a�yuo7 I \ �i"o N _ Paa14oN� / a Ps\`1 peoy I �0e " Pa 1 E H 10043S ,(Lewud •e!I!POlS // HOV3il Soopus 3s1SP.Z P e ua6al wM� antll `jjeH j-gljjj�,}(� pN8-:euueynf-a>oall Si is I MSSSieI e w013 Al Puel51 WWWL1 L111�a g` 66 V7�� M 3 PN Rluno7 rymPo antl4 j MNISM M•3iP'd\ J m i `ocMea u Q t MN is - �antla>Ie7Puelal i 1 `a 47 � 'I E cN*oiRa,g 3 N ! 1 i wal3 s111H au1luaRA i a Mai ls.! MNIS 410 - a � q C? = / N -A Pa8-1 nlun 1a41as 0 [M �Z3 Pa Rlune7 s3 as Zluno7 — MN Is 41s - 1 any,(Puea 1 _ apa�.ual� ua� \hn_E_F_z p A a ! 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P4V N L ® anv alwol ! y y::ba ! i d oanV_PunoW 1 ,a mPluwj �s 1 o � ,o Paoma16ue�o f o�� I m � ' � , ••i \ auPie M,a Nna,aW-, 1 a _ '-Id Poo4u!9oa I 1 ) 1 ! of .i...0a>la!a PN Apliq,S r nyaBP4 2 ! .✓ l wey6wYana— S j M � j H Pa R1S�oy -- j �� l�Iils!a XTU-1 �O Le /,e'alepw o ! �'? °o leulsnpulleiauaO:Z-1 �o J q j �Z- PNAunoa leulsnpul pa11w11 :L-I j d anyyaq..l . ssou!sng RemaleJ :90 1 I i S. ! a ,Q.uofu e- F ssoulsne 11e1aH :4-g 1 ssoulsne aoln6as :S-9 .................................................A w — g bl .M.I.Pa-aluno7. ,a Puo wd wal3 pa,� ena� poomauld ssaulsng �eiauao:Z-g I ssoulsng Pallwll a-8 la llau,o7 s;oulsld BuluoZ +a rv>I q i a O 'ul annbg N N 3 W '$ Q VZOZ'£Z aagwojdaS }p sV juaamo 6uluoZ NW 'SIM uaPay;o 43 N 01109 uoi;elnBeN BuiuoZ sigeuueo AGENDA ITEM - 3C -ADEN HILLS MEMORANDUM DATE: October 14, 2024 TO: Honorable Mayor and City FROM: Jessica Jagoe, Interim City Administrator SUBJECT: Personnel Discussion Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A For Council Consideration A verbal update will be provided at the meeting. Page 1 of 1 AGENDA ITEM - 3D -AI�EN HILLS MEMORANDUM DATE: October 14, 2024 TO: Honorable Mayor and City Councilmembers FROM: Jessica Jagoe, Interim City Administrator SUBJECT: Union Negotiations Updated (Closed per M.S. 13 D.03, Subd. 1(b) and 179A.01 to 179A.25) Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A For Council Consideration Council may choose to enter into a closed session to discussion Union Negotiations per M.S. 1313.03, Subd. l(b) and 179A.01 to 179A.25. A verbal update will be provided at the meeting. Background N/A Budget Impact N/A Attachment N/A Page 1 of 1 -ADEN HILLS MEMORANDUM DATE: October 14, 2024 TO: Honorable Mayor and City FROM: Jessica Jagoe, Interim City Administrator SUBJECT: Rice Creek Commons/TCAAP Discussion Budgeted Amount: N/A For Council Consideration Actual Amount: N/A AGENDA ITEM - 3E Funding Source: N/A Council will have the opportunity to comment on any TCAAP related items they so choose. Background N/A Budget Impact N/A Attachment N/A Page 1 of 1 AGENDA ITEM - 3F '!Tt -AII��EN_ HILLS MEMORANDUM DATE: October 14, 2024 TO: Honorable Mayor and City Councilmembers FROM: Jessica Jagoe, Interim City Administrator SUBJECT: Agenda Planning Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Council Should Consider Council should discuss its next work session agenda. Background Per Council's adopted policy on agenda setting, please find proposed agendas below for upcoming meetings. October 281h Work session — Joint Meeting with the Planning Commission • Zoning Ordinance Review Discussion (time sensitive) • RCC/TCAAP Discussion (not time sensitive) Agenda Planning (time sensitive) November 121h Work session • 2025 Budget Discussion (time sensitive) 2025 Fee schedule (time sensitive) RCC/TCAAP Discussion (not time sensitive) Agenda Planning (time sensitive) November 251h Work session • TBD RCC/TCAAP Discussion (not time sensitive) Agenda Planning (time sensitive) Attached is the list of topics that have yet to be discussed by Council. Council may want to discuss if any items need to be added to this list for future discussion or assign a future meeting for some of these items. This would need to be done by a majority consensus of Council. Page 1 of 2 Below is a running list of things Staff brings forward to work session annually, in recent years, we have shifted away from bringing some items forward unless needed, such as, the Pavement Management Update from Public Works. Note, these timelines may shift year to year. Most items discussed at work sessions are one-off items that may require multiple meetings but are usually not reoccurring. • January o Legislative priorities • February o None • March o Initial guidance on next year's Public Works projects • April o None • May o None • June o Follow up on next year's Public Works projects • July o Capital improvement planning • August o Operating budgets • September o Operating budget and levy discussion • October o State of the City (if planned for early following year) • November o City-wide budget and fee schedule o Follow up on next year's Public Works projects • December o Committee and commission appointments Budget Impact N/A A++.anhmnn+ Attachment A: Council Priorities Attachment B: Agenda Setting Policy Page 2 of 2 Attachment A [Rank 1 Fopic for Consideration Committee/Commission Goal Setting Likely Responsible Department Admin F Notes TBD 3 Volunteer Recognition (to Personnel first) Admin TBD 3 Speed Limit Old Snelling PW TBD 3 Trail Prioritization (Lake Jo versus Snelling Ave N) PW/Fin November 2024 Discussion 4 Climate Action Plan Admin TBD 4 Committee/Commission Membership Admin TBD 4 EV Fleet Analysis PW TBD 5 Energy audit Admin TBD 5 Porta potties IPW JTBD 6 EDA Membership Discussion CD/Admin Future EDA meeting 7 Community S ey Admin TBD Potential Ordinance Review Items: 1 tpic for Consideration Short-term Rental Ordinance Likely Responsible Depart en' CD/Admin TBD Z Rental Licensing Program CD/Admin TBD 4 Building Materials Update/Discussion CD JTBD Keeping of Ducks and Review Chicken Ordinance CD/Admin TBD Added items: Proclamation Policy Garbage Collection (MV Presentation?) Committee/Commission Liaison Role Policy Code of Conduct Door to Door Group Affiliation/Information With City Approved Policy Discussion Buy Nothing Day/Clean Up Day MNTWC Encroachment Discussion (2025) Door to Door Solicitations Attachment B It "ENILLS CITY OF ARDEN HILLS Agenda Setting Policy The purpose of this policy is to establish a method for agenda setting that allows for Council to review and have control over its agendas and decide as a Council how it wants items for consideration to be brought forward. For regular worksession agendas: • Prior to concluding each regularly scheduled worksession, the City Council shall review its next regularly scheduled worksession agenda and direct Staff on any changes. • Should an individual Councilmember want to raise an item for discussion at the next meeting or in the future, they would do so during this review period. The item would need at least one other Councilmember to agree to having the item considered for future discussion, and then Council, by majority, would direct to have it placed on a future agenda or not. Staff will have flexibility to add or remove items to the worksession as needed to maintain operational efficacy. For regular City Council meeting agendas: • Agendas will be largely Staff driven based on approvals needed for normal operations. • Items coming from the City Council shall first be discussed at a worksession and can direct Staff at said worksession to bring items forward for formal approval if needed. • In rare instances, if a Councilmember brings forward an item that needs approval prior to going to a worksession, they may request the City Administrator add the item to the agenda. The City Administrator shall have the discretion to determine if the issue should be added or not, but Councilmembers will make every effort to having the item first discussed at a worksession. Special meetings and emergency meetings: • Special meetings and emergency meetings may still be called at the discretion of the Mayor or any two Councilmembers, and the members calling the meeting shall set the agenda.