HomeMy WebLinkAbout5.b. Armory Committee Recommendation �. � r . . . . . . �
+ ` P.O. BOX 510
r \�Z� 0 2875-145TH ST. W.
O�Qy�}A ROSEMOUNT. MINNESOTA 55068
G,r�'0��� 612-d23-4411
ITEI� # 5 �
�
TO: Mayor Napper
Council Members Klassen, Oxboroug , Willcox, Wippermann
!;` �
FROM: Stephan Jilk, City Administrator1 r
DATE: August 15, 1990 J �
RE: Armory/Community Facility
Attached are items of information regarding costs and effects on
taxes for different projects including:
A. Armory
B. Street Reconstruction
C. City Building Construction
D. School District Referendums
As discussions have been held on the Armory and possible
enhancements/additions, questions always come up about other
city/school projects which will affect taxes. I thought it might
be a good idea to put together this information so that as we
discuss the Armory/Community facility we might see what other
projects may be facing us and how the overall tax picture may be
affected.
I will be prepared to answer questions on this data as we discuss
the Armory Committee report.
If you have questions on the data please don't hesitate to
contact me prior to the meeting.
This report is not intended to be a recommendation, but merely an
opportunity to review data which I believe many of you may be
asking about in order to make decisions on the Armory issue.
Zj
ARMORY PROJECT IDEAS FOR DISCUSSION
August 15, 1990
COST
Basic Armory — City Share $ 877 ,500
Gymnasium Upgrade 122 ,000
Park & Recreation Offices 7Q,000
Banquet Facility 512,000
TOTAL $1 ,581 , 500
Add 7 .5� for Architects Fees $ 118,500
and miscellaneous Adds
ESTIMATE CITY TOTAL COST $1 , 700,000
Less National Guard Buydown ($ 200,000)
Less Ac.cumulated Levy Prior to
Having to Pay Debt Service
Assuming $95,000 + 1/3 mill levy ($ 262,000)
TOTAL TO BOND FOR $1 , 240,000
ANNUAL DEBT SERVICE PAYMENTS
$1 , 240,000 AT 8� FOR 20 YRS. — $124,462
$1 , 240,000 AT 8� FOR 30 YRS. — $109, 184
LEVY AVAILABLE
Special Levy $ 95,000
1/3 Mill Levy $ 26,000#
TOTAL $121 ,000
#This number will increase about 10� a year due to tax base
growth.
Armory Project
Ideas for Discussion
August 15 , 1990
Page 2
This scenario has been developed so as to consider which
"enhancements" the City could afford without any additional levy
approval through referendums. It assumes maximum use of
available funding .
Additional tax ramification ideas.
l . There are more projects which the City alone will be
considering in the future which will have effects of
increasing taxes in the City .
a. City Facilities: We are now completing a space
needs/facilitp needs study which will help us determine
what cost ramification we must deal with to provide
adequate facilities for police, fire, public works and
administration offices.
The initial estimates we have seen provide us with a
cost estimate to provide facilities, over the next
fifteen years of some eight (8) million dollars with
the first major need before us now of some $2,$00,000
for a new fire station and remodeling of existing
facilities for use by public works and other
departments.
Cost $2,800,000.
b. Road Reconstruction Program: It is estimated that over ,
the next fire (5) years the City will be conducting �I�
major reconstruction projects amounting to three (3)
million dollars total. Assuming that the City wi11
eventuallp end up providing assistance in the foxm of
reducing assessments to about 50� of cost we can plan
that we wi11 incur an "average" debt of 2.5 million
dollars for these projects and 509 of that, or 1 .25
million would be covered by increased general taxes,
Cost $1 , 250,000.
2. School District: The School District, of course, is
continuing to consider additional debt for state aid
shortfalls and growth in the district. They are discussing
a levp override referendum in the amount of $300,000 and
additional school construction needs of 15 to 20 million
dollars in the next 2 to 5 years minimally.
Levy Override $3,000,000 annuallp
Debt $20,000,000
Armory Project
Ideas for Discussion
August 15, 1990
Page 3
3. Tax Ramifications: To consider what effects all of these
projects will have on the communitp requires some �
assumptions. To create some scenarios to look at let' s
assume:
�I a. City Builds Armory with Options #' s 1 , 2, 3, & 5
Annual Debt Service Needs $ 121 ,000/yr.
b. City proceeds with Street Reconstruction ro ram
P �
and 507 fundi
ng policq.
Annual Debt Service Needs $ 181 ,000/pr.
c. City receives referendum approval for lst stage of
Facility Study. $2,800,00 at 8� for 20 years.
Annual Debt Service Needs $ 281 ,000/yr.
d. School District receives approval to levp $3
million/pr . for reduced state aids.
Annual Levy $3,000,000/yr.
e. School District receives approval to levy for
$20,000,000 in additional schools.
Annual Levy $2,000,000/yr.
f. A 10' increase in tax base value each year which ',
reduces amount individuals pay on debt. '
lj
Armory Project
Ideas for Discussion
August 15, 1990
Page 4
TA% EFFECTS ON CITY TA% PAYER — AVERAGS HOME (�90,OD0)
Single Family Homestead
10� Increase per pear in Taz Base �
This Pro�ect Accumulative
A. $121 , 000/yr. (Armory)
Year 1 $ 11 .89 $ 11 .89
Year 10 5.04 5.04
Year 20 1 .94 1 .94
B. $182,000/yr. (Streets)
Year 1 17 .88 29.77
Year 10 7 . 58 12.62
Year 20 2.92 4.86
C. $281 ,000/pr. (City Facilities)
Year 1 27 .61 57.38
Year 10 12. 55 24. 33
Year 20 4.51 9. 37
D. $3,000,000/pr. (Override Levp)
City Year
Year 1 29.58 86.96
Year 10 12.55 36.88 I
Year 20 4.84 14. 21
E. $2,000,000 (School Bldgs. )
Citp Year
Year 1 19. 22 106.68
Year 10 8.36 45. 24
Year 20 3. 22 17.43