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<br /> <br />MEMORANDUM <br /> <br /> <br />To: St. Anthony Village City Council <br />From: Shelly Rueckert, Finance Director and Charlie Yunker, City Manager <br />Date: February 9, 2021 City Council Work Session <br />Request: Proposal for Tennis Court Resurfacing Project Funding <br /> <br /> <br />BACKGROUND <br />The Tennis courts located south of City Hall were built in 1998 and have been repaired on four different <br />occasions since 2012 and are in need of replacement. The courts are well-utilized by the general community as <br />well as the school district for physical education classes and the tennis team. <br />The 2021 Capital Improvement plan has scheduled the resurfacing of the tennis courts located next to City Hall <br />as a 2022 project. Given the current conditions of the court City Staff has explored moving up the project date to <br />2021. This topic of project timing was discussed at the October 26, 2020 City Council Work Session and staff was <br />directed to seek input from the Parks & Environmental Commission. The Commission discussed the topic at their <br />December 7, 2020 meeting and supported moving the project to 2021 if a funding source could be identified. <br />The project’s cost is estimated at $180,000, which comprises the contractors quote, engineering costs and a 5% <br />contingency allowance. <br />The project costs exceed the current Park Improvement Funds’ resources. Therefore, Staff is recommending the <br />use of an Interfund Loan to finance the 2021 project costs. Given this size of an expenditure an Interfund Loan is <br />a more cost effective and expedient tool than debt financing. Staff is also recommending phasing in a Parks <br />Improvement levy over a 10-year horizon. The potential levy and Interfund loan terms have been structured to <br />provide: <br />• The repayment of the Interfund loan in 15 years <br />• An additional source of funds for future Park Improvement expenditures <br />• Interest earnings to internal lending source that exceeds the present investing rates <br /> <br />DISCUSSION ITEMS FOR COUNCIL FEEDBACK <br />Below are the specific items for discussion and feedback for the City Council: <br />• Does the Council support the use of an Interfund Loan? <br />• Does the Council support phasing in a Parks Improvement levy over a 10-year horizon? <br />• Any other aspects of the replacement Staff should consider? <br /> <br />ATTACHMENTS: <br />1) Modeling of levy and debt.