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4~97 <br /> <br />CIP FINANCES <br /> <br />NSP CONTRIBUTIONS <br /> <br />Beginning in 1991, NSP began contributing funds to the City of Elk River. <br />The contribution was negotiated between the City and NSP and was offered <br />by NSP to finance improvements in the City to help offset any negative <br />effects or opinions which may inadvertently be directed at Elk River due to <br />the RDF Plant. <br /> <br />The contribution is approximately $200,000 per year. Of this amount, <br />$20,000 goes directly into the City General Fund to help pay for police <br />services associated with monitoring RDF related truck traffic on the <br />highway. Half of the balance, approximately $90,000 per year, is designated <br />for part of the City Hall/Police Station bond repayment plan. Approximately <br />$90,000 per year is available for other activities at the discretion of the City <br />Council. <br /> <br />Of the $90,000/year that remains under the discretion of the City Council, <br />the 1991-1994 funds were spent on the Oak Knoll recreation fields and the <br />purchase of the land at the City Hall site. The 1995 and 1996 funds were <br />used for the purchase of the Cass property. The City may recapture some of <br />these funds through the selling of residential lots (excess Cass property) and <br />is scheduled to recapture $60,000 over time from the youth athletic <br />organizations for the development of the fields. The City will then have this <br />money available for future activities. The Cass property is to be put into <br />recreation fields and the 1997 NSP funds are planned to be spent on this <br />development project. The 1998 NSP funds have not yet been committed. <br /> <br />Ideally, NSP money will be saved in a reserve for a few years for future large <br />scale projects. Saving this NSP money for a number of years until a larger <br />pool of funds develops could be a significant benefit to the City in the future. <br /> <br />Page 11 of 16 <br /> <br /> <br />