Minutes - 2001/02/26 - Laserfiche WebLink

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Mounds View City Council February 26, 2001 Regular Meeting Page 18 ~J ~J • The Springsted Representative stated they were given $8.00 and that is what was used noting he would have assumed that if it took $8.00 per round to meet the projected revenue one could only assume that sales tax would be added to the $8.00 not subtracted from it. Mayor Sonterre asked if the City had to secure the bonds with an amount of money as a down payment from the City. Finance Director Kessel indicated bonds typically require aone-year debt service that amounted to approximately $309,000. Mayor Sonterre asked if the down payment was considered in the pro forma. The Springsted Representative indicated that it was. Mayor Sonterre noted there were much higher expenses than estimated and asked if those expenses were solely for the cost of developing the course or if they were all operational costs. The Springsted Representative explained that question is why Springsted was not able to get the materials to Council earlier. He then explained they did not have a chance to look at the efficiency or effectiveness of the golf course and break down the costs. There were some costs that were not anticipated that would put them into the extraordinary costs from the beginning. Mayor Sonterre stated from the time the first shovel hit the ground until the first person walked on the course, not including legal fees, estimated costs were exceeded. Mr. Hammerschmidt explained actual construction costs came in under budget and there was money left over but decisions were made to save money that ended up costing money in the long run. Council Member Thomas stated the actual debt service numbers are less than was estimated by several thousand dollars every year. The Springsted Representative confirmed that they were and indicated it was due to interest rates. Council Member Thomas questioned if the debt service estimates were prepared by Springsted. The Springsted Representative indicated that they were. The Springsted Representative explained it is his role to act as City Staff to structure the finances for the golf course to City advantage, take the information to the market, and get bids on the debt. Council Member Thomas asked if consideration was given to refinancing.