City Council Minutes 2016 04 05 - Laserfiche WebLink

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City Council Meeting Minutes April 5, 2016: Page 7 of 18 Chris Kastelic noted this proposes to take the 57,000 square foot facility and add 40,000 square feet of improvements. Mayor Pro Tem Lipton asked Finance Director Watson to describe the estimated debt service and tax impacts for the proposed bond issue chart included in the packet. Finance Director Watson noted a range of project funding requirements was taken from $25 million to $37 million, conservative bond issuance costs of 1.5% to get a total debt amount. The sales tax rate to support the annual debt service was looked at as well as the property tax mill levy to support the debt service. A calculation of what the net mill levy would be was made, which was the new levy less the library levy which expires in 2018. The $25 million dollar project, results in about a 2.941 mill levy, which is about $120 on a $500,000 residence and $425 on a business valued at $500,000. He wanted it understood these are very rough estimates. Mayor Pro Tem Lipton noted there is work being done with the City's financial advisor to examine all the factors to get a clearer vision of the impact on residents. There will also be analysis if the project could be started in 2017 to avoid some of the inflation for construction costs. Council member Maloney asked about the two year overlap of the Library and proposed Rec Center loans. Deputy City Manager Balser emphasized the question in November would be for a new tax at the full amount regardless of what is happening with the Library. Finance Director Watson noted the financing may include a wraparound structure. Council member Loo cautioned against using an exact $25 million number; it is a preliminary figure. Mayor Pro Tem Lipton called for public comment. PUBLIC COMMENT Mike Frontczak, 643 Fairfield Lane, Louisville, CO asked if there was a tie between the arboretum and what is being done at the rec center. Mayor Pro Tem Lipton said it had not, but could be looked at to include the arboretum in the campus. Michael Perkins, 229 Vulcan St, Louisville, CO asked about the tax structure for high density residential. Mayor Pro Tem Lipton noted it would be on assessed value. Scott Beard, 512 Buckthorn Lane, Louisville, CO asked if the rec center operates with a revenue stream that creates profit or was it cost center; would it support itself.