Agenda - Council - 04/12/2005 - Laserfiche WebLink

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ihe residents o£ Ramsey. He explained the methodology utilized would be a revolving fund for the inl?astructure, which would be similar to the Equipment Revolving Fund. Mr. l)onna indicated thc Ramscy Town Center infrastructure needs have been broken into the fbllowing lbur components: Phase 1, Phase 2, AUAR, and Parking. He explained for financing purposes thc four components should be treated as one large project fund with inflows of funds craning in and outflows for construction. The resources should be combined and managed in an cfficient manner to fund the infrastructure throughout the construction project. A revolving fund will allow them to leverage revenues, particularly assessments for cash flow purposes. This will require an ongoing management by City staff to be sure the cash flow is being managed efficiently. Mr. Donmt reviewed the fiscal impact of the Ramsey Town Center improvements, including the t¥11owing cash flow statements with the Council: Phase 1 Fund, Phase 2 Fund, AUAR Roads, and Parldng Structures. Councihncmbcr Elvig noted the second parking deck, which is shown with an outflow midway through 2006, is a big variable in the equation. (',ouncilmembcr Strommen noted the Council discussed reviewing the fiscal impact on a quarterly basis. As the numbers come in they will be able to reevaluate the effect. Mi'. l)onna indicated 13.4 million dollars has been identified as the City's share of the costs. This number will change depending on the second deck and the actual bids. Additional grant moneys may be secured and internal monies may be freed up. When the actual dollar amount is delermincd, thc opportune time to lock in will need to be evaluated. He indicated there is proposed legislation that would restrict the City from borrowing money that would be supported in any way fi'om a property tax. However, the likelihood of the legislation passing is low. Councihncmber Cook commented if the second ramp is pushed out too far there will be increases in the interest rate and construction costs. He noted a third ramp may be necessary to make a commtmity center viable. Mi'. I)onna advised the project should drive the financing, rather than the financing driving the pr(0ect. There are a lot of project costs that are estimates that will not be bid for another two or threc years, lie reviewed tax impacts based on a delayed borrowing scenario. He advised the only wa3, around thc tax bump in 2006 is either through capitalizing some interest on the debt in fl~c municipal center or infusing other cash flow to reduce the total impact. In 2007 the levels are back to what they were and continue to decrease. Councihncmber Elvig noted two million dollars is needed to prevent a tax impact. This can be done through many variables, such as internal borrowing and capitalized interest. The Council had previously discussed that landfill funds may be available, as well as overages from the general revenue. City Council Work Session/March 29, 2005 Page 2 of 8