8.2. SR 08-01-2016
Request for Action
To Item Number
Mayor and City Council 8.2
Agenda Section Meeting Date Prepared by
General BusinessAugust 1, 2016Cal Portner, City Administrator
Item Description Reviewed by
Community Center Referendum Lori Ziemer, Interim Finance Director
Reviewed by
Action Requested
Provide staff direction regarding a possible November 8, 2016, referendum for the construction of a
multi-purpose community center.
Background/Discussion
On July 18, 2016, the City Council accepted the Community Center report as presented by JLG
Architects. The report included an analysis of existing recreation facilities including the Activity Center
(55+), Elk River Ice Arena, and Lions Park Center.
The report finds that anticipated repairs to the existing facilities are estimated to cost approximately $10
million. The task force was charged with gathering community input regarding stakeholder’s desires for
facility improvements. The report finds that improvements to existing facilities consistent with
stakeholder requests would cost in the neighborhood of $23 million (minor improvements) to $32 million
(major improvements).
The report recommends consideration of a new, multi-purpose facility that consolidates the three primary
facilities with planned phasing for additional improvements identified by stakeholders. The preliminary
facility cost is $30-$33.5 million. That cost does not include potential revenue from the disposition of
existing facilities, possible grants including Mighty Ducks Grants, or funding from community partners.
If the council chooses to have a ballot question on the next general election, November 8, 2016, the
following would be required:
Written notice must be provided to the county auditor by Friday, August 26 regarding the
title and language of the question(s).
The city attorney must review and sign off on the title of the ballot question and determine if
the title accurately describes the questions being asked.
MS 457.57-59 explains resolution requirements.
https://www.revisor.mn.gov/statutes/?id=475.57. Attached is a sample that was used for
the Y project.
Statutory wording is required with the question and the title can’t contain more than 10
words.
At the last meeting, Council asked for some additional information in which to use to determine a
possible total amount. Following is information gathered with the assistance of our financial advisor at
Springsted, Inc., our finance department and the county assessor regarding the community center debt
questions. Note the debt capacity has changed from the April number from our 2014 CAFR. The new
capacity is reflected in the 2015 CAFR the Council received in June.
Debt capacity as of 12/31/15 - $48,399,029
Debt capacity projected as of the end of 2016 – approx. $55,000,000
Average home value is approx. $227,500 = approx. $234 tax increase based on $35,000,000
debt (20 yr. repayment)
Median home value is approx. $200,000 = approx. $201 tax increase based on $35,000,000
debt (20 yr. repayment)
Taxable market growth:
5 yr. avg. – (-3.6%)
10 yr. avg. – 1.7%
15 yr. avg. – 6.0%
20 yr. avg. – 7.1%
25 yr. avg. – 7.5%
Taxable market growth related to new construction – 2% - 3%
Repayment term is suggested to be in the 20-25 year range.
According to Springsted, there are many options to structure the debt that can take
advantage of projected growth.
Public Safety building debt will be retired in February of 2023, making the current levy
amount available to decrease the annual costs of debt for a facility.
The council may wish to consider anticipated facility funding costs, additional phase construction costs,
additional park improvements, as well as other additional revenue additions such as stated earlier to
determine a bonding request amount.
With Council direction, staff will prepare required information for Council approval at the next meeting.
Financial Impact
N/A
Attachments
July 17, 2006, Minutes Y Referendum
• EXTRACT OF MINUTES OF MEETING OF
THE CITY COUNCIL OF THE
CITY OF ELK RIVER, MINNESOTA
HELD: July 17, 2006
is
Pursuant to due call and notice thereof, a regular meeting of the City Council of the City
of Elk River, Minnesota, was duly called and held at the City Hall on July 17, 2006, at 6:30
o'clock p.m.
The following members were present: Mayor Klinzing, Councilmembers Dietz,
Gumphrey, Farber, and Motin
and the following were absent: None
Member Gumphrey introduced the following resolution and moved its adoption:
RESOLUTION #06-91
RESOLUTION CALLING FOR AN ELECTION ON PLEDGING THE CITY'S
FULL FAITH AND CREDIT AND RESOURCES TO $12,000,000 OF BONDS TO BE
ISSUED BY THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF ELK
RIVER GENERAL OBLIGATION BONDS
BE IT RESOLVED by the City Council (the "Council") of the City of Elk River,
Minnesota (the "City"), as follows:
1. Project. This Council has investigated the facts and does hereby find, determine
and declare that it is proper,. necessary and expedient that the Economic Development Authority
of the City of Elk River (the "EDA") issue bonds in an amount not to exceed $12,000,000
secured by the pledge of the City's full faith, credit and resources to defray the expense of the
acquisition and betterment of a recreational facility to be owned by the EDA and leased to the
YMCA of Metropolitan Minneapolis ("YMCA").
2. Election. The proposition of pledging the City's full faith, credit and resources to
the bonds of the EDA shall be submitted to the qualified electors of the City at a special election
to be held on September 12, 2006. Said election shall be held between the hours of 7:00 a.m.
and 8:00 p.m. The polling places for said election will be as follows:
Precinct
Polling Place
IA
City Hall
IB
United Methodist Church
2A
River of Life Church
2B
Meadowvale School
3A
Ivan Sand School
3B
Lion's Park Center
4A
Twin Lakes Christian
Assemblies of God Church
Address
13065 Orono Parkway
1304 Main Street
21695 Elk Lake Road
12701 Elk Lake Road
1232 School Street
1104 Lion's Park Drive
18912 Twin Lakes Road NW
• 4B The Church of St. Andrew 566 4t' Street
3. Notice and Ballot. The Clerk is hereby authorized and directed to post and
publish according to law a Notice of Special Election and Ballot, and to prepare ballots for the
question for use at said election, which notice and ballot shall be in substantially the following
forms:
•
2 06-91
•
•
•
CITY OF ELK RIVER, MINNESOTA
NOTICE OF SPECIAL ELECTION
Tuesday, September 12, 2006
NOTICE IS HEREBY GIVEN that a special election will be held in and for the City of
Elk River, Sherburne County, Minnesota, on September 12, 2006 between the hours of 7:00 a.m.
and 8:00 p.m., at which time the following question will be submitted:
"Shall the City of Elk River, Minnesota, be authorized to pledge its full faith,
credit and resources to bonds to be issued by the Economic Development
Authority of the City of Elk River in an amount not to exceed $12,000,000 to
defray the expense of the acquisition and betterment of a recreational facility
owned by the Authority and leased to the YMCA?
The polling places for said election will be the following locations within the City, at
which places all of the qualified electors of the City residing within such precinct may cast their
ballots:
Precinct
IA
1B
2A
2B
3A
313
4A
Im
Pollin Pg_ lace
City Hall
United Methodist Church
River of Life Church
Meadowvale School
Ivan Sand School
Lion's Park Center
Twin Lakes Christian
Assemblies of God Church
The Church of St. Andrew
Dated: July 17, 2006.
Address
13065 Orono Parkway
1304 Main Street
21695 Elk Lake Road
12701 Elk Lake Road
1232 School Street
1104 Lion's Park Drive
18912 Twin Lakes Road NW
566 4t' Street
BY ORDER OF THE CITY COUNCIL
/s/ Joan Schmidt
City Clerk
3
0=1
• CITY QUESTION BALLOT
SPECIAL ELECTION
CITY OF ELK RIVER
SHERBURNE COUNTY
MINNESOTA
September 12, 2006
INSTRUCTION TO VOTERS: If you wish to vote in favor of the following proposition,
completely fill in the oval U next to the word "YES". If you wish to vote against the
following proposition, completely fill in the oval ( ) next to the word "NO".
CITY QUESTION NO. 1:
ACQUISITION AND BETTERMENT OF
RECREATIONAL FACILITY LEASED TO YMCA
"Shall the City of Elk River, Minnesota, be authorized to pledge its
full faith, credit and resources to bonds to be issued by the
Economic Development Authority of the City of Elk River in an
• amount not to exceed $12,000,000 to defray the expense of the
acquisition and betterment of a recreational facility owned by the
Authority and leased to the YMCA?
•
The maximum amount of increased levy as a percentage of market value is .052%.
The maximum amount that would be raised by the new referendum tax rate in the first
year if it were to be levied is $902,982.
NOTICE: BY VOTING "YES" ON THIS BALLOT QUESTION,
YOU ARE VOTING FOR A PROPERTY TAX INCREASE. The
Economic Development Authority of the City of Elk River anticipates
entering into a lease with The Young Men's Christian Association of
Metropolitan Minneapolis (the "YMCA") pursuant to which the YMCA
will pay one-third of the debt service of the bonds to be issued by the
Economic Development Authority of the City of Elk River.
YES ( )
NO ( )
4 06-91
• 4. Election Judges. Election judges will be appointed at least twenty-five (25) days
prior to said election.
5. Manner; Canvass. Said election shall be held and conducted in accordance with
the statutes of the State of Minnesota applicable, and the Council shall meet as required by law
for the purpose of canvassing said election and declaring the results thereof.
The motion for the adoption of the foregoing resolution was duly seconded by member
Dietz and, after full discussion thereof and upon a vote being taken thereon, the following voted
in favor thereof:
Mayor Klinzing, Councilmembers Dietz, Gumphrey, and Farber
and the following voted against the same: Councilmember Motin.
Whereupon the resolution was declared duly passed and adopted.
•
ATTEST:
1,,
Joan' S4idt, City Clerk
•
5
Stephanie Klinzing, Mayor
06-91
• STATE OF MINNESOTA
COUNTY OF SHERBURNE
CITY OF ELK RIVER
•
u
I, the undersigned, being the duly qualified and acting Clerk of the City of Elk River,
Minnesota, DO HEREBY CERTIFY that I have carefully compared the attached and foregoing
extract of minutes with the original minutes of a meeting of the City Council duly called and
held on the date therein indicated, which are on file and of record in my office, and the same is a
full, true and correct transcript therefrom insofar as the same relate to a special election on the
pledge of the City's full faith, credit and resources to bonds to be issued by the Economic
Development Authority of the City of Elk River.
WITNESS my hand as such Clerk on July 17, 2006.
City C rk
0
06-91
•
0
[City Letterhead]
Sherburne County Auditor
[address]
Dear County Auditor:
Pursuant to Minnesota Statutes, Section 205.16, Subdivision 4, this letter is to formally
advise you that the City of Elk River, Minnesota, will be holding a special city election on
September 12, 2006, between the hours of 7:00 a.m. and 8:00 p.m. at the following polling
places:
Precinct Polling Place
IA
City Hall
IB
United Methodist Church
2A
River of Life Church
2B
Meadowvale School
3A
Ivan Sand School
3B
Lion's Park Center
4A
Twin Lakes Christian
Assemblies of God Church
4B
The Church of St. Andrew
Address
13065 Orono Parkway
1304 Main Street
21695 Elk Lake Road
12701 Elk Lake Road
1232 School Street
1104 Lion's Park Drive
18912 Twin Lakes Road NW
566 4"' Street
The following question will be submitted to the voters at that election:
"Shall the City of Elk River, Minnesota, be authorized to pledge its full faith,
credit and resources to bonds to be issued by the Economic Development
Authority of the City of Elk River in an amount not to exceed $12,000,000 to
defray the expense of the acquisition and betterment of a recreational facility
owned by the Authority and leased to the YMCA?
Please see attachment for the final ballot layout.
Very truly yours,
CITY OF ELK RIVER, MINNESOTA
B
Y
441e�4
Itsty lerk