2003-09-04 Special - Laserfiche WebLink

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Session 1896 September 4, 2003 and security was not represented in the summary before the Council. Mr. Ollendorff then explained that this money would come from sales tax ($500,000 to $550,000 a year). Mr. Wagner asked why the summary lists the amounts of $4.3 to $4.8 million, and Mr. Ollendorff explained those figures represented the amount the City can borrow. Starting with the figure of $500,000 to $550,000 raised annually: if the City puts $400,000 into debt, that would yield $4.3 to $4.8 million, leaving $100,000 to $150,000 for operation, maintenance and security issues. The only way to increase the $4.8 million dollar figure is to increase the sales tax in the bond issue and less into the maintenance figure, which is not advised. Mr. Wagner expressed confusion over the figure of $1.5 million dollars and where it came from. Mr. Ollendorff explained that to borrow $4.8 million dollars, $400,000 dollars would be subtracted from the sales tax figure, leaving $100,000 to $150, 000 not shown on the current summary sheet. Mr. Ollendorff advised these figures are capital only. Ms. Welsch asked how the summarized figures would change if a 20-year bond, rather than a 15-year bond was sought, and she was advised by Mr. Ollendorff that the amount would be approximately $5.4 million dollars. She questioned where money to pay for staff and programs would come from, and wanted to know the time frame for determining the exact concept for the improved fitness center and gymnasium locker rooms. Mr. Ollendorff's response was three to four months, with Council selection of the design team this month, followed by two or three months for them to complete the plans and provide an estimate. Ms. Welsch questioned the pros and cons of a 20-year bond issue, because she feels the public would question using the old bath house facility. Mr. Ollendorff shared that the summarized figures represent amounts left over if the Council determined to proceed with the pool bid. The interest rate to be paid on these bonds will be a huge variable, from 3.8 per cent to 5 per cent, with the lower interest rate resulting in more money borrowed. Projections for a 20-year bond are approximately $5.4 million, depending on the interest rate. Ms. Welsch pointed out that if 20-year bonds were undertaken, the Council could retain some for debt payment and also have enough to renovate the bath house while other renovations are underway. Mr. Ollendorff responded that the Council must acknowledge that the estimate is nearly a year old and that the figure of $2.8 million dollars for improving the locker room does not include the other half dozen amenities that the Council recommended last week. Ms. Welsch affirmed her wish to examine 20-year or more bonds, so that the City is able to build as much as decided upon as possible. Mr. Ollendorff said that he, the Finance Department and the bond consultant would provide various alternatives in about a month's time. The plan is to issue the bonds in November so that there are funds to pay for the first pool bills. The bond sale requires six weeks to complete, so late September or early October is the target date for the final decision on bond details by the Council. Today's consideration, he said, is preliminary, and indeed a 20-year bond would yield Page 2