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4.9. SR 06-30-1997~'ity of iver MEMORANDUM Item # 4.9. TO: FROM: DATE: SUBJECT: Mayor & City Council Pat Klaers, City ~trator June 26, 1997 Park and Recreation Bond Referendum For the most part, I will provide the Council with a verbal update on how things are progressing with this bond referendum. Briefly I would like to advise the Council that there was a Committee meeting held with the staff on 6/26/97 to discuss the information that the Commission presented to the Council at the June 16th meeting. The proposal you saw on June 16th is going to change. The Commission is meeting on July 9th with Decision Resources representatives and our bonding counsel. The goal is to establish the maximum amount for the bond referendum and identify steps, and a time frame for the steps, that need to be taken in order to have success in September for the park and recreation referendum. It should be noted that we are not tied in to a September 9th election date and that it is most likely that the election will be on September 23, 1997. Much like the community center desired by the public cannot be constructed with the amount of money the public is willing to pay; the Park and Recreation Commission also cannot give the public everything they support for the amount of money they are willing to pay. Accordingly, I think that some items identified in the survey as desirable will not be in the bond referendum so that we can ensure that sufficient funds are available to make an impact in the areas that are going to be included in the proposal. The June 16th handout had $1.8 million for outdoor recreation activities. This excluded the pool and also excluded any "soft" costs that are associated with improvement projects. The survey indicated that the public would support about $22-$23 as a tax increase for outdoor recreation. This would generate about $2-$2.1 million. Accordingly, I think that we will see the outdoor recreation proposal increase by $250,000 or so and include the city share for the Lion's Park teen center. Furthermore, we may see no funds being applied to a riverwalk because $100,000 will make a very minor impact on a 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425 downtown riverwalk project and these funds can have a much bigger impact on neighborhood parks and trails. The pool question will be a separate issue and will stand alone. It will be the second question on the referendum and the votes for the pool issue will only get counted if the outdoor recreation issue is successful. If the outdoor recreation issue is defeated, the pool votes are not even considered. It is anticipated that if the public is going to support a pool they are going to want a high quality pool. If this means $1.3 million, then that is the amount that the Commission will recommend the Council put forward to the public. If a high quality pool can be done for only $800,000, then likewise, this will be the amount the Commission will recommend the Council put forward to the public. Overall, it was the goal to have the outdoor recreation and the pool be under $30 per average household. We may be approaching $35 if the pool is going to end up needing to be $1.3 million for what the public desires. All of the above comments are offered in a very preliminary fashion. A formal presentation to the Council is expected either on July 14th or July 21st. \\elkriverXsysXshrdoc\councilkp&rupdt. doc