Laserfiche WebLink
Mr. Donna explained that Lease Purchase Revenue Bonds are the preferred choice because it it a <br />much easier debt to issue. <br /> <br />Mayor Gamec inquired if there was a timeline for spending funds after the bonds are issued. <br /> <br />Mr. Donna explained that all proceeds need to be spent within three years and there is a <br />reasonable expectation to spend 10 percent within six months. <br /> <br />Mr. Donna reviewed the different funding options for Town Center infrastructure. <br /> <br />Councihnember Elvig inquired as to what Tax Increment Financing (TIF) can be used for. <br /> <br />Mr. Dom~a explained that TIF could be used for redevelopment, industrial, commercial, and <br />housing. Use of TIF for retail and office space is very difficult. <br /> <br />City Administrator Norman explained that it would be very important to watch the State's <br />language in regards to the debt levy especially if they are going to be putting a deadline on the <br />issue <br /> <br />Councilmember Elvig inquired if it is being suggested that bond rates may go higher. <br /> <br />Mr. Donna explained that rates have recently come down, but when the market changes rates will <br />increase quickly. <br /> <br />City Administrator Norman noted that the purpose for this case was to provide the Council with <br />an overview of different public financing options. <br /> <br />5) HRA Levy <br /> <br />City Administrator Norman stated that another revenue generating strategy for the City would be <br />to increase the Housing Redevelopment Authority (HRA) levy to the maximum amount allowed. <br />The Economic Development Authority (EDA), which currently has HRA levy authority, chose <br />not to levy the maximum for the 2003 budget. Staff recommended that creation of an <br />independent HRA as to fully utilize the HRA Levy using the current Housing Commission. <br /> <br />Mayor Gamec stated that it made sense to establish an HRA since it allows for another funding <br />option. <br /> <br />Councilmember Zimmerman questioned if the object of the City Council is to spend as much <br />money as they can. <br /> <br />Mayor Gamec replied that they would have to analyze the issues after the legislature approves a <br />budget. <br /> <br />City Council Work Session/April 29, 2003 <br /> Page 14 of 15 <br /> <br /> <br />