CC PACKET 11132001 - Laserfiche WebLink

Home Browse Search

39 MEMORANDUM DATE: October 15, 2001 TO: Mike Mornson, City Manager FROM: Roger Larson, Finance Director ITEM: COMMUNITY CENTER UPGRADES Per your direction, I reviewed possible funding options for the proposed Community Center renovations. The funds necessary total $150,000 with transformations and improvements being implemented over a one to three-year period. To determine if a potential funding source or sources exists, I reviewed the following prospective areas. Community Center Fund Balance The-original financing plan for the Community Center included establishing a building ® fund for City Hall/Community Center improvements. At that time, it was the intent of the City that a portion of the annual lease would go towards repayment of capital (thus establishing a building improvement fund) and a portion would reimburse the City for operation and maintenance costs. Based on a cost projection formula for operation and maintenance of$1.58 per square foot (furnished by the architectural firm of Williams/O'Brien), a portion of the School District's rent was slated to fund future building improvements/renovations. As with any structure, the actual costs associated with building can vary depending on the use of the facility. Since the opening of the building in February of `97, the overall use of the building increased significantly, which ultimately escalated the costs for operation and maintenance. The end result of this increased use has been that the revenues derived from the School District lease are consumed by the costs of operation and maintenance of the building. Liquor nrofats Profits from our Liquor Operation are a major source of funding for Capital Equipment purchases. Over the next 5 years, capital equipment needs are estimated at $500,000 per year. Profits from operations are projected between $200,000 -$250,000 annually, which • equates to the profits generated from operations are not available for a project of this nature.