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E Attachment D �iiR�EN HILLS MEMORANDUM DATE: October 14, 2003 Agenda Item 4.A TO: Mayor and Council Michelle Wolfe, City Administrator FROM: Aaron Parrish, Director of Community Development / Asst. City Admin. SUBJECT: Karth Lake Pumping Project Financing Options ENCLOSURES: 1. Karth Lake Pumping Project Costs: Direct Expenses 2. Karth Lake Pumping Project Financing Scenarios 3. Scenario #1 Parcel Specific Estimates 4. Scenario #2 Parcel Specific Estimates 5. Scenario 43 Parcel Specific Estimates 6. Scenario 44 Parcel Specific Estimates 7. Surface Water Management Fund Retained Earnings Overview At the September 29, 2003 Council meeting, the City Council approved proceeding with the Karth Lake Pumping project. However, the ultimate approach to financing the project was deferred to the October Work Session. Previously, the notion of a 50/50 split between the City and Lake Improvement District was discussed. The intent was to share in all costs including construction expenses, legal expenses associated with creating the Lake Improvement District, and engineering expenses. Since the project came in significantly over the engineer's estimate, the Council wanted to explore the possibility of changing the approach to finance the project. Discussion at the Council meeting ranged from changing the percentage allocation between the Lake Improvement District and the City to changing what costs were ultimately included in the total project cost. As a follow up to this discussion, staff has prepared a series of four alternatives each with different cost and policy implications. These alternatives generally include the following: 1. Scenario #1: Previous Proposal. This scenario takes into account all direct expenses associated with the project. The cost is split between the Lake Improvement District and the City equally.