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79 Staff asked Ehlers to do some financial analysis on what the annual debt service would be 80 for the new building. The analysis used borrowing in the amount of $14.7 million and 81 looked at 15-year and 20-year debt service schedules. To account for issuance costs and 82 potential contingencies, the financing model uses a $14.7M bond issuance. For the 15- 83 year bond, annual debt service would be slightly under $1.4 million. For a 20-year bond, the 84 annual debt service is slightly less than 1.2 million. As the City Council will recall, in 2011, 85 the City, using its port authority powers, issued $27 million in bonds to implement the parks 86 improvement plan and to construct a new fire station. The final payment of $2,485,500 for 87 these bonds will be fully paid off in 2028 using 2027 levy funds. As a result, $2,485,500 of 88 existing levy funds will be available to use towards new debt payments for a new building 89 starting in 2028. 90 91 Other alternatives that could help fund the construction of the new building would be a 92 combination of new tax levy and License and Passport Center revenue. Currently, 93$200,000 of License and Passport Center revenue is transferred to the City's General Fund 94 for general tax relief. This amount could be utilized to help pay towards the debt service 95 but would need to be replaced in the budget with either new tax levy or equivalent cuts in 96 the budget. 97 98 Staff has included comments received from the public about the License and Passport 99 Center and City Dance Studio as Attachment 5. 100 101 Policy Objectives 102 The construction of a new Maintenance Operations Center and License and Passport 103 Center (along with the City Dance Studio) will allow the City to continue to provide needed 104 and valuable services to the residents and businesses of the community in a more efficient 105 manner. The new facilities will ensure that the City's roads, utilities, vehicles, and 106 equipment are maintained at the desired level and that valuable services such as 107 recreational programming and driver license and passport processing are conveniently 108 available to community residents. 109 110 Equity Impact Summary 111 The new maintenance operations center and license center will provide a benefit to the 112 residents, businesses, and visitors to Roseville. The new facilities will allow for more 113 efficient services to be provided for residents, customers, and users of city parks and 114 infrastructure. As with all City projects, staff will continue to identify potential unintended 115 consequences and identify potential alternatives to disproportionally impactful action. 116 117 Budget Implications 118 Regardless of the choice made regarding whether to build a new LPCDS or lease space for 119 those activities, there will be a cost that will need to be covered by tax levy and/or program 120 revenue. Depending on the timing and decisions made by the City Council, existing debt 121 levy could be repurposed to limit the amount of new tax levy needed to fund the new 122 building or annual lease payments. While revenue from the License and Passport Center 123 and the City's dance program could potentially be used to offset need of new tax levy, there 124 would not be enough revenue to cover 100 percent of the costs for the space, whether it is 125 leased or owned. Also any repurposing of revenue that currently goes towards tax levy 126 relief, would need to be made up either through new tax levy or equivalent cuts in the 127 budget. Page 3 of 4 Qbhf!57!pg!488