2017-9-5_PR Comm Packet - Laserfiche WebLink

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Potential funding options for the construction of the Cedarholm Community Building have been previously 81 discussed. As outlined by Finance Director Chris Miller, those options include available amounts shown in 82 the table belowas well as others. 83 Funding SourceRemainingAmount Available 84 Park Dedication$1,300,000 85 *Park Renewal Program$ 250,000 86 **Park Renewal (SW Commitment)$600,000 87 ***Park Renewal (Potential Remaining)- 88 *Golf Course Fund$165,000 89 Bonding - 90 Internal Loan - 91 Other- 92 Total Potential Available Funding Sources$2,315,000 93 94 Actual Remaining Project Cost w/o Alternates$2,953,900 95 Actual Remaining Project Cost with Alternates$3,132,500 96 Additional Funds Needed w/o Alt$638,900 97 Additional Funds Needed w Alt$817,500 98 99 *Takes into consideration funds already used for design work completed to date. 100 **Funding commitment to Southwest Roseville for Park and Recreation improvements. This 101 assumes$200,000for development of the Cleveland and County B site that is currently in the 102 planning stage. 103 *** Potentialremaining is still yet to be fully finalized after closeout of all projects. 104 105 It is the recommendation of staff to utilizethe entire Park and Recreation Renewal Program Funds for 106 nearerterm projects. 107 108 As noted in the table, one potential funding option is to utilize the City’s bonding authority to borrow 109 monies and pay it off over time. However, Staff generally does not advocate for this option if the bond 110 amount is less than $2 million or so. This is due to the fact that the City will incur significant issuance costs 111 of at least $50-$75,000 regardless of the size of the bond. This in turn, increases the cost of the project. 112 113 To address smaller financing needs it is oftentimes more advantageous to utilize internal loans instead. They 114 are more cost-effective and have less negative effect on the City’s bond rating compared to an actual debt 115 issue. A likely source of funds for the internal loan would be the Street Replacement Fund, which has a 116 current balance of $10 million. 117 118 If either a bond or internal loan were used, the Council would also have to identify a funding source(s) to 119 repay the bond/loan. The mostviable options would be future Park Dedication Fees or Tax Levy. 120 121 The final source of funding and the total amounts can be determined at a later date. 122 123 Asbestos Removal –it has been determined that a double layer of asbestos exists within the ceiling of 124 the existing building. It is expected that the city turn over a clean building to a contractor. Staff has 125 received proposals to do this work. It is estimated to costs $17,000 for the removal and proper disposal. 126 127 128 Page 3of 6