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<br />4 <br /> <br />- <br /> <br />-- <br /> <br />CITY COUNCIL WORK SESSION <br />Topic Report: Town Center Funding: <br />Possible Use of HRA Funds Held at County <br /> <br /> <br />By: Diana Lund, Finance Officer <br /> <br />Background: <br /> <br />The funding sources for the purchase of Ramsey Town Center were stated as being the <br />Letter of Credit in the amount of$1.5 million and the Water Utility Fund in the amount <br />of $5.25 million. <br /> <br />Annually the County levies an HRA levy on Ramsey Residents. This levy is currently <br />being used to help pay the debt service of the Savannah Oaks Senior Housing and the <br />excess of those needed funds amounts to approximately $600,000. This amount is <br />currently being held at Anoka County HRA on the City's behalf. This balance was <br />originally $1.025 million, but was reduced by $430,000 at the beginning of the year when <br />the County HRA refinanced the debt on the Savannah Oaks project. As council may <br />recall, $600,000 had originally been designated for the AACAP project in front of the <br />municipal parking ramp. <br /> <br />As the City is always looking to reduce the costs associated with the purchase of Ramsey <br />Town Center, it is being proposed that the $600,000 ofthe HRA funds be designated <br />towards the purchase price. The Anoka County HRA just requires a resolution from the <br />City identifying the use of the funds. <br /> <br />A possible fund scenario for Ramsey Town Center could be as such: <br /> <br />Letter of Credit: $1,500,000 <br />Anoka County HRA Funds: 600,000 <br />Water Utility Fund (Internal Loan) 2,325,000 <br />Sewer Utility Fund (Internal Loan)......... ..... ....2.325.000 <br />Total Funding $6,750,000 <br /> <br />Action Statement: <br /> <br />Discussion of Funding Sources for Ramsey Town Center. <br />