HomeMy WebLinkAbout7.b. Armory - Levy AuthorizationAsk
T0: Mayor Hoke ITEM 7b
Councilmembers: Napper
Oxborough
Walsh
Wippermann
FROM: Stephan Jilk, Administrator/Clerk
DATE: July 15, 1988
RE: Special Levy
Armory Construction
As part of the planning, and eventual construction, of the
National Guard Armory in Rosemount the city will be obligated to
pay a portion of the construction costs. We have indicated to
you in our discussion on this that the city will be responsible
for 12.5% of the overall cost of the basic building and a varying
portion of additional features the City and the Guard chooses to
construct
Our authorized method of collecting taxes for this financial need
is to levy 1/3 mill on the taxable property in the city. For
taxes payable in 1989 this 1/3 mill would produce about $17,000.
The city can begin to levy this amount for taxes payable in 1989
because we have been notified, by the Guard, that the Armory will
be built.
To collect this levy for a couple of years prior to its actual
construction will allow us to build up a small reserve to help us
leverage more debt when we do bond for the facility thus giving
us a few more possibilities in adding features to the project.
We therefore request your adopting the attached resolution
"Levying an Anticipatory Tax for a State Armory Building." We
ask that this be done now as one of the steps in our budgeting
process for 1989.
V