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Finance Director Lund stated that they can attribute the bonds to different areas and the interest <br />could help the numbers. <br /> <br />Councilmember Riley asked if rates could be decreased at that point. <br /> <br />Finance Director Lund stated that she would recommend holding the rates steady for water and <br />sewer, as Ramsey’s rates are not even as high as most cities. She stated that if the Council wishes <br />to do a 5% rate increase on the sewer and decrease the amount of the loan from the sewer and any <br />grant funds that come in could be applied against that. <br /> <br />Councilmember Musgrove asked if the rate would increase 10% in 2023 and 2024 then down to <br />8% in 2025. <br /> <br />Finance Director Lund said yes but explained that there are two factors that could come into play <br />here, if they do not have to bond then the interest rate would go away and secondly, we don’t yet <br />know the true cost to run the water treatment plant. She explained that as the market value <br />continues to rise on investments this should increase the investment total. <br /> <br />Councilmember Musgrove asked if the 8% in 2025 could end up being 10%. <br /> <br />Finance Director Lund added that it could possibly go lower. <br /> <br />City Administrator Hagen noted the future COR infrastructure projects and that these funds could <br />be used if Council wanted to move forward with infrastructure improvements in the coming years <br />under TIF-14. He asked how that would play into this fund. <br /> <br />Finance Director Lund stated that if they are talking about sewer and water related to TIF-14, this <br />would be eligible for TIF-14 bonding. She stated that park improvements are the only thing not <br />eligible for TIF-14 funds. <br /> <br />City Administrator Hagen asked if these funds can be used and then paid back through TIF revenue <br />rather than having interest on the bonds. <br /> <br />Finance Director Lund stated that this would be an interfund resolution to pay this back. She stated <br />that if there were projects outside of The COR area they could use the sewer and water funds. <br /> <br />Councilmember Specht shared that he is comfortable approving this worst-case scenario plan <br />knowing that they may not need to go this high. <br /> <br />Councilmember Musgrove asked for clarification that Councilmember Specht was in support of <br />the 10% increase. <br /> <br />Councilmember Specht said yes. <br /> <br />Councilmember Musgrove agreed that this will helps cover costs and can later be readjusted. <br /> <br />City Council Work Session / May 23, 2023 <br />Page 5 of 12 <br /> <br />