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Executive Summa, 4 . The City had originally identified $1.5million in projects to be paid for from MSA funds. The City does not have the ability to issue $1.5 million in MSA Bonds. Based on the statutory formula the maximum the City could issue is $895,000 (Minnesota Statute 162.18). In addition to the Bonds the City would receive an additional $137,000 per year in M.S.A. funds that would not be dedicated to debt service that could be used to fund projects on a cash basis. However, these two techniques will not cover the entire amount designated. Of the $1.5 million only $400,000 is available from the MSA Bonds to pay for the Flood Mitigation/Street reconstruction projects. The City does have the ability to issue $2,040,000 in General Obligation Stormwater Revenue Bonds. The Enterprise fund currently has revenues of approximately $160,000 a year which could support an estimated maximum of$2,040,000 in General Obligation Storm Sewer Bonds (Minnesota Statutes Chapter 444). Public Works Building- The City has several options for financing the public works buildings. Springsted recommends the City issue lease revenue bonds through their Housing and Redevelopment Authority ("HRA"). Central Park—The City has fewer financing options for the Central Park improvements. Springsted recommends the City put the question to the voters in order to issue General Obligation Bonds. Fire Station The City has several options for financing the Fire Station. Springsted recommends the City issue lease revenue bonds through their Housing and Redevelopment Authority • ("HRA"). Off-Sale Liquor Store —The liquor store operations are generating sufficient profit to finance the $1,000,000 in Liquor Revenue Bonds. Salvation Army—The valuation report of the Salvation Army was received by the City with a comparable value of$13,600,000. The City does not have the debt capacity to issue the bonds. In addition the cost is too prohitive for the voters to support. Springsted recommends that the City not proceed towards financing the purchase of the property through tax levies. Capital Equipment—The City sets aside from the operational budget $75,000 a year for capital equipment purchases. Based on the capital equipment plan's identied needs for the city through the next five years Springsted recommends that the City increase this amount to $100,000 per year (APPENDIX I. TIF-The TIF portion of the Study will be discussed in a separate report. • 2 SPRINGSTED Page 2