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Mr. Fifield explained that the study would allow for some insight on service demands based on <br />development. <br /> <br />Councilmember Elvig stated that the City is looking at the construction of a new City Hall and <br />discussing a timeline and, if they look at bonding rates, the rates have never been lower. He <br />inquired if there was a way to lock bonding rates for a time period and will the fiscal impact <br />study identify time frames. <br /> <br />Mr. Fifield explained that the fiscal impact study would show year-to-year projections on <br />existing debt and the impact of new debt. <br /> <br />4) Long Range Financing Options <br /> <br />City Administrator Norman stated that with the proposed development of the Town Center, the <br />City is faced with various financing options of how to fund a new City Hall and various <br />infrastructures located within the Town Center. Presented for Council review was an explanation <br />of the different financing options that the City may want to use to finance a new City Hall and <br />Town Center infrastructure. These reports were prepared by the City's financial consultant, Mr. <br />Paul Donna of Northland Securities. <br /> <br />Paul Donna, Northland Securities, explained that lending the money is the easy part; the difficult <br />area is identifying revenue sources to pay the bonds back. Mr. Donna reviewed the two options <br />for financing City Hall, which included General Obligation Bonds, and Lease Purchase Revenue <br />Bonds and explained the difference between the two bonds. The most common option for public <br />buildings is the Lease Purchase Revenue Bonds. <br /> <br />Councilmember Kurak inquired as to where the funds come from to pay the bond back. <br /> <br />Mr. Donna explained that a debt levy is outside of the levy limits under current law, but a key <br />component of the Governor's bill is to include debt levy within levy limits. <br /> <br />Councihnember Kurak inquired as to what the impact would be per homeowner. <br /> <br />Mr. Donna replied that those are figures that will all be built into the fiscal impact study. <br /> <br />City Administrator Norman stated that the end impact to the taxpayer is the key issue and the <br />goal is to bring in additional revenues to cover the additional costs to make a minimal tax impact <br />on the residents. <br /> <br />Councihnember Cook inquired if the reason the Lease Purchase Revenue Bonds are more <br />appropriate is because they don't have to levy the amount to pay for it and other sources could be <br />used. <br /> <br />City Council Work Session/April 29, 2003 <br /> Page 13 of 15 <br /> <br /> <br />