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u~ty of <br /> <br />iver <br /> <br />MEMORANDUM <br /> <br />Item # 4.2. <br /> <br />TO: <br /> <br />FROM: <br /> <br />DATE: <br /> <br />SUBJECT: <br /> <br />Mayor & City Council <br /> <br />Pat Klaers, City Admin~s~trator <br />July 28, 1997~'~ <br /> <br />Outdoor Recreation Bond Issue <br /> <br />For a number of years, and especially since the beginning of 1997, the Park <br />and Recreation Commission has been working towards submitting to the <br />public an outdoor park and recreation bond referendum proposal. Recently a <br />Community Survey that concentrated on Park and Recreation issues was <br />conducted. Results of this survey has helped encourage the Commission to <br />pursue an outdoor park and recreation issue but also has helped create some <br />confusion by way of indicating that the public would also support an outdoor <br />pool and a community center. The Community Survey results also identified <br />some concerns and contradictions between what people wanted and what <br />people were willing to pay for regarding a community center. (Unfortunately <br />this same question was not asked regarding an outdoor pool.) The Park and <br />Recreation Commission believes that they have a proposal to recommend to <br />the City Council which is: identical to what is needed in the community; is <br />supported by the community; and is matched by what the community is <br />willing to finance. This proposal from the Commission excludes a pool in the <br />September 23, 1997, referendum. However, the Commission supports a pool <br />being pursued as an independent issue for a possible referendum in 1998. <br /> <br />The Park and Recreation Commission has been pursuing the outdoor <br />recreation issue from two different angles. These two angles are; what are <br />people willing to pay versus what is the minimum amount of money needed <br />in order to complete improvements of any significance. Question 31 of the <br />Survey (see attachment) indicates that a typical Elk River resident is willing <br />to increase their taxes by $22 yearly to fund park and recreation <br />improvements. We originally believed that this would generate about $2 <br />million and the Commission believed that for this amount it could get many, <br />and a great variety of, improvements that would make an impact on the <br />community. However, this initial information was based on net tax capacity <br />and we now realize that bond issues must be based on market value. This <br />market value basis paints a completely different picture and indicates that it <br />will be about $31 per year per household ($100,000 value) over 20 years to <br /> <br />13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 ° TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425 <br /> <br /> <br />