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85 E. SEVENTH PLACE,SUITE 100 <br /> SAINT PAUL,MN 55101-2887 <br /> 651-223-3000 FAX:651-223-3002 SPRINGSTED <br /> Public Finance Advisors <br /> EXTERNAL MEMORANDUM <br /> TO: St. Anthony City and School District <br /> FROM: Robert D. Thistle <br /> DATE: September 11, 2000 <br /> SUBJECT: Central Park <br /> The City of St. Anthony and the School District are exploring alternatives to jointly finance <br /> improvements to Central Park. The total cost of those improvements is estimated to be $1.6 <br /> million. <br /> There are basically five options currently under consideration: <br /> 1. Cash on Hand <br /> 2. Internal Loan/Low Interest <br /> 3. Tax Abatement <br /> 4. Referendum <br /> 5. Cash and Abatement <br /> Option 1: Cash <br /> The use of cash on hand may be used if the accumulation of funds is consistent <br /> with policy needs of the..' ity and that the use of such funds does not jeopardize <br /> other financial requirements, needs or obligations. The City does have under <br /> consideration the use of approximately $665,000 from the Water Filtration Fund, <br /> which funds are not vital to the general operations, maintenance and replacement <br /> costs of the plant. The choice is whether or not to spend those funds for this <br /> projector other projects. The City also is expecting to use $100,000 in grant funds <br /> from the State. <br /> Option 2: Internal Loan <br /> The City could loan the funds to the project to be repaid over the same 15 year <br /> term as the abatement bonds. However, any repayment would have to come from <br /> available funds of the City and School District and would not be construed to be a <br /> special levy. Further, the interest rate on a $1 million loan would be approximately <br /> 3.0% assuming an annual revenue of$84,796. That stream at 0% interest <br /> would support a loan of_$1.,270,000: <br /> SAINT PAUL,MN • MINNEAPOLIS,MN • MILWAUKEE,WI • OVERLAND PARK,KS • WASHINGTON,DC • DES MOINES,IA <br />