Agenda - Council Work Session - 05/14/2019

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The 1st debt schedule is if we bonded for $7.645M Prin & issuance costs) and have an equal payment for the life of the bond levy years 2022-2041 The 2nd debt schedule is if we bonded for $7.6.45M Prin & Issuance Costs) and pay interest only until the Muni Center debt is paid off in 2031 The 3rd debt schedule is if we internally loaned from the Water Fund for $7.5M at a 2% interest rate The 4th debt schedule is if we internally loaned from the water fund for $7.5M at 2% interest rate, but have debt service until the muni debt is paid off at 50% of normal debt service and then inflate payments in 2032. Each of the debt schedules noted above could be reduced by $44,520 for payment years 2022-2028 as this would the savings in tax levy from selling the PW land and paying off the loan early in 2019/2020. The total of the project is estimated at $15M and these scenarios proposed to finance one-half of the project. In order to minimize the ammount the City would finance, the other $7.5M would come from the following funds and not paid back: Water Utility: $1.875M Sewer Utility: $1.875M Street Lt Util: $250,000 Storm Utility: $ 500,000 Facility Fund: $1M Landfill Fund: $2M Total $7.5M Timeframe: 5 minutes Funding Source: Enterprise (Sewer and Water) Funds would be used for the initial purchase and improvements. In the future, the property could be sold to a private party of the City's Economic Development Authority for economic development purposes. Responsible Party(ies): Kurt Ulric, City Administrator Grant Riemer, Public Works Superintendent Outcome: Concensus direction to proceed to a purchase agreement with Anoka County for this property. Attachments