Agenda - Council - 02/08/2005 - Laserfiche WebLink

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revenue bonding would be done thr0Ugh :. the EDA. He would like the Council to discuss this tonight and it will be moved to a regular Council meeting for formal action. Finance Officer Lund reviewed the fiscal stUdy regarding the Municipal Center. Paul Donna of Northland Securities indicated according to the updated figures from Jim Lasher, the cost for the RTC municipal deck is at 8.5 million dollars for 600 stalls. The cost of the RTC west deck, also known; as the ExcelSior-qrand :deck, is at 8.7 million dollars with inflation and will also be 600 stalls. The total cost of the two decks is at 17.2 million dollars. He indicated after grant funds and assessments are apPlied, there will be a gap of 2.6 million dollars to be funded. Mr. Lasher was able to identify roughly 107 stalls on the municipal deck as related to City Hall. These stalls can be financed through the City Hall bond, which will reduce the 2.6 million dollar gap. He advised as far as identifying various grant moneys, it should be looked at as a big pot of money and how t° best levei'age the tools available. Finance Officer Lund reviewed the impact~ On residences based on the amount of debt attributed to Town Center and Town Hall. She indicated the Council had asked to hold the debt capacity rate stable. She reviewed the rate increase from 2005 to 2006 and explained the majority of the expense is due to interest on the debt in thb year 2006. To reduce the amount of tax capacity on 2006 it would push the interest into later years. She explained based on this fiscal study, in 2007 the rate goes back down to the 2005 rate, The overall net from 2006 to 2007 is a net increase of eight dollars on a $250,000 house. City Administrator Norman indicated the figures presented are the extremely worst-case scenario. Mr. Donna explained this fiscal information shows the net impact to the City. The City will be borrowing for more than the amount reflected, but there will be assessments. Also, the year in which this debt would occur is not reflected, and it is all shown as levied in 2006. He advised projects can be staged. The Council reviewed the following information: · Summarization of the studies completed on the existing City Hall site · Comparison of costs between renOvation/addition to the existing facility and a new municipal center · The financial information for fundirig of the new municipal center The Council discussed the deficiencies of the current City Hall and the importance of being certain that the revenue projections are acCUrate. Councilmember Elvig commented a lot of-this is in the City's control. There is discussion of pipes going to the north and the west, and there is opportunity to expand and help the cash flow. :City CoUncil Wor~ SesSion/January 19, 2005 Page 2 of 8