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Taxpayer Impact Assuming the City needed to secure an additional $1.7 million dollars, the repayment of the internal loan described above would result in the following impact. Avg. Valued Home 9 $235K Current taxes e, Payback Schedule Payback $565 e, Schedule $ Additional taxes 29 17 Total taxes 594 582 1.6% % Increase 5.0% 3.1 % Alternatively, if the City issued bonds or equipment certificates to pay for the project and amortized the debt over a I0 -year period, the impact would be as follows: Avg. Valued Home 9 $235K Current taxes 10 -Year Pa b. Schedule $565 Additional taxes 9 Total taxes 574 % Increase 1.6% The Council is reminded that these taxpayer impacts would be in addition to any added impacts from other property tax levy increases that will be needed for the City's operating and capital replacement budgets. Final Comments There are other financing alternatives beyond what is identified above. The City does have discretionary funds in the Park Improvement Program (PIP) Fund and the Park Dedication Fund. However, these funding sources only have the capacity to pay approximately $200,000. The City could also earmark future revenues from these funding sources to pay for the Arena improvements; however that would only serve to deplete monies from other parks and recreation programs and amenities. The City could also draw further from other operating budget reserves, but that would be in violation of the City's operating Budget Reserve Policy, and could potentially jeopardize the City's bond rating. Finally, the City could simply choose not to repay the internal loan. This too however will have an impact on other city services. Staff will be available to answer any Council inquiries. 0