Laserfiche WebLink
Mayor Gamec stated he was not really in favor of a special assessment; he would rather raise the <br />rate ahead of time. <br /> <br />Coul~cilmember Strommen suggested putting some projection on what we might be collecting <br />and what we might have to really borrow. <br /> <br />Mr. Donna stated that Table 1 shows buildouts; the total buildout is just under $600 million. He <br />explained how he_ came up with the total debt levy, and identified revenues and the three <br />columns of expenditures. He added that this is based on a nine-year buildout. <br /> <br />Councilmember C~ok asked for a couple of scenarios, i.e. four-year buildout, etc., which Mr. <br />Donna presented. He showed worst case, best case, and practical scenarios and added that <br />initially, this was a three to four-year buildout. <br /> <br />Councilmember Elvig noted that these numbers are more buffered. <br /> <br />Discussion ensued relating to where numbers should be before the second phase is begun. <br /> <br />Mr. Normm~ stated that the residential development is not allowed to go beyond 50 percent until <br />we have 15 pement commercial. The residential development will be driving the conunercial. <br /> <br />Mr. Donna referred to his handout and explained that the balance of the pages is supporting <br />documents. Page 5 is the general fund expenditures, page 6 shows the total debt service phase, <br />pages 7 and 8 are Phase I and II and water tower - 10-year scenario and 7-year scenario. Page 9 <br />is a breakdown of costs of Phase I and II - minus the parking ramp and the water tower. <br /> <br />Councilmember Cook inquired if the figures are conservative. <br /> <br />Mr. Norman noted that after three years, we can show a profit, not a loss. He stated that with the <br />City expense, parking maintenance, etc. $1.3 million is where we will be each year. <br /> <br />Mr. Donna stated that the debt ratio is cut in half. <br /> <br />Councilmember Elvig inquired if the City needs to worry about the State and levies. <br /> <br />Mr. Norman replied that this is levy free. <br /> <br />Councilmember Cook stated that this will pay for itself and help with other things. <br /> <br />Councilmember Elvig inquired of Mr. Engen what kind of assumptions he is on for buildout. <br /> <br />Mr. Engen stated that it is depending upon a fall start up - 18 months and certificate of <br />occupancy. This is not just being optimistic. We feel the second scenario more closely <br />resembles his assumptions - 35, 22, and 20. If we do a bit better on the commercial side, you <br />have a positive fund balance in year 2. If you do not finance the parking ramp, you are in even <br />better shape. <br /> <br />City Council Work Session/September 15, 2003 <br /> Page 5 of 10 <br /> <br /> <br />