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MEMORANDUM DATE: November 21, 2000 TO: Mike Mornson, City Manager FROM: Roger Larson, Finance Director ITEM: CENTRAL PARK PROJECT/FUNDING The following represents a financial plan for the $1.6 million dollar Central Park Project with zero increases in taxes and full utilization of budget reserves: The proposed funding sources for Central Park are as follows: 1) $595,000 - General Obligation Bond (Abate Evergreen Townhomes) The debt associated with the Evergreen Soil Correction District has been defeased. The District can now be decertified (expires is 2001) and established as a Tax Abatement Parcel. Revenues from the property are sufficient to fund the $595,000 General Obligation Bond based on a minimum School abatement of$37,500 as shown by the Springsted analysis. If the School abates more, which they can, the bond issue can increase and the City wouldn't have to use as much reserves. 2) $250,000 - General Fund Reserves Previously, these reserves were set aside for budget contingencies for potential losses in revenue in State Aid (LGA/HACA) and Liquor Profits. 3) $100,000 - Parks Grant (State Amateur Grant). 4) $655,000 Funding from the Water Filtration Fund. As part of the Springsted Debt Study, an analysis was performed to identify available water filtration funds without jeopardizing funding for operation and maintenance or plant replacement costs. Funds totaling $1,000,000 were identified as useable. It should be noted that the Water Filtration Funds have been invested in long-term investments with the intention of preserving capital while using the interest earnings to pay for the,operation and maintenance of the GAC Plant. To make these funds available for the Central Park Project without losses in principal, liquidation of investments would occur over the next several months.