05/07/2001 Park Board Packet - Laserfiche WebLink

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O A /LA Lino Lakes Public Services Department 600 Town Center Parkway Lino Lakes, MN 55014 (651) 982 -2440 Fax (651) 982 -2439 • Memorandum To: Park Board Members From: Rick DeGardner, Public Services Director Date: March 27, 2000 Re: Bond Referendum It is my recommendation to delay a bond referendum to develop the athletic complex until at least 2002. The bond referendum may also include neighborhood park improvements and trail projects. My reasons for not proceeding with a bond referendum this year are as follows: ♦ Current market forces have inflated projected costs. High fuel prices have resulted in bituminous costs almost doubling. Site grading costs are high due to the tight labor market. Fencing costs have seen a tremendous increase the past twelve months. Therefore, estimated development costs for core facility development of the athletic complex is $3.3 million dollars (see enclosed sheet). Also, the area and unit fund must be reimbursed for the land acquisition costs ($925,000 plus interest). ♦ The estimated annual tax impact for residential property owners is too high (see enclosed sheet). The annual amount has decreased significantly since 1997. However, I feel the tax impact is more than what a typical Lino Lakes resident would be willing to pay for development of an athletic complex, park improvements, and trails. ♦ An additional $2,793,000 market value of approved and /or built economic development projects will be on the tax rolls in 2001, and an additional $14,260,000 in 2002 (today's dollars). This will reduce the tax impact for residential property owners. Projected commercial projects thru 2002 could result in excess of $17,000,000 additional market value on the tax roles. ♦ We need to look at the "big picture" regarding the City's finances. Bonding projects such as the YMCA and road reconstruction referendums will affect the City's net debt limit of 2 %.