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FC CASE CONSIDER AUTHORIZATION OF A FISCAL IMPACT STUDY By: James E. Norman, City Administrator Background: The City received a fiscal impact of growth study in September 1999, from Springsted Public Finance Advisors, the City's financial consultant at that time. The purpose of the study was to develop a long-range financial plan and review existing financial management policies to ensure their consistency with the financial plan, identify opportunities to diversify General Fund revenues and increase the use of non~tax levy revenues, and explore the fiscal impact of different planning scenarios. The study was to focus on a five-year period ending in the year 2005. One of the problems with the five-year projection was that it did not take into account the de- certification of Tax Increment Financing District No. 6, which is scheduled for the year 2006. At a recent meeting of the Ramsey Town Center Task Force, a recommendation was made to update the Ramsey Fiscal Impact Study by interjecting the new revenue projections, which would be brought about by construction of a new town center. It would be recommended that the study encompass a 10-year period rather than a five-year period. Staff has contacted the City's current financial consultant, Juran and Moody, and they are in the process of developing a proposal for Council consideration. It is assumed that a proposal will be completed by the March 12 Council meeting and will be distributed to the Council for consideration. Council should be aware that the 1999 study was budgeted at $10,340. An additional $2,500 was also budgeted for analyzing different growth scenarios, however, this amount was not utilized. Funding for the study would be obtained from the Council Contingency Fund. Committee Action: Based upon discussion Reviewed by: City Administrator Finance Officer Principal Planner FC: 04/09/02 I ~RA_FS I ~ VOL I [use~:v~City Shared FilelA GENDA COUNCIL & COMMISSIONI City Councill2OO21MarcblFiscallmpactStudyO4OgO2. doc 04/03/02