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the residents of Ramsey. He explained the methodology utilized would be a revolving fund for <br />the infl'astructure, which would be similar to the Equipment Revolving Fund. <br /> <br />Mr. Donna indicated the Ramsey Town Center infrastructure needs have been broken into the <br />f'ollowit~g lbur components: Phase 1, Phase 2, AUAR, and Parking. He explained for financing <br />purposes the four components should be treated as one large project fund with inflows of funds <br />coming in and outflows for construction. The resources should be combined and managed in an <br />efficient manner to fund the infrastructure throughout the construction project. A revolving fund <br />will allow them to leverage revenues, particularly assessments for cash flow purposes. This will <br />r~:quirc an ongoing management by City staff to be sure the cash flow is being managed <br />efficiently. <br /> <br />Mt'. Donna revicwed the fiscal impact of the Ramsey Town Center improvements, including the <br />following cash flow statements with the Council: Phase 1 Fund, Phase 2 Fund, AUAR Roads, <br />and [~arking Structures. <br /> <br />Councilmember Elvig noted the second parking deck, which is shown with an outflow midway <br />through 2006, is a big variable in the equation. <br /> <br />Councihnember Strommen noted the Council discussed reviewing the fiscal impact on a <br />quarterly basis. As the numbers come in they will be able to reevaluate the effect. <br /> <br />Mr. Donna indicated 13.4 million dollars has been identified as the City's share of the costs. <br />This number will change depending on the second deck and the actual bids. Additional grant <br />moneys may be secured and internal monies may be freed up. When the actual dollar amount is <br />determined, the opportune time to lock in will need to be evaluated. He indicated there is <br />proposed legislation that would restrict the City from borrowing money that would be supported <br />in auy way from a property tax. However, the likelihood of the legislation passing is low. <br /> <br />Councihnember Cook commented if the second ramp is pushed out too far there will be increases <br />in the iuterest rate and construction costs. He noted a third ramp may be necessary to make a <br />community center viable. <br /> <br />Mt'. Donna advised the project should drive the financing, rather than the financing driving the <br />project. There are a lot of project costs that are estimates that will not be bid for another two or <br />three years. Itc reviewed tax impacts based on a delayed borrowing scenario. He advised the <br />only way around the tax bump in 2006 is either through capitalizing some interest on the debt in <br />thc municipal center or infusing other cash flow to reduce the total impact. In 2007 the levels are <br />back to what they were and continue to decrease. <br /> <br />C, ouncihnember Elvig noted two million dollars is needed to prevent a tax impact. This can be <br />done through many variables, such as internal borrowing and capitalized interest. The Council <br />had previously discussed that landfill funds may be available, as well as overages from the <br />general revenue. <br /> <br />City Council Work Session/March 29, 2005 <br /> Page 2 of 8 <br /> <br /> <br />