5.2. SR 12-10-2007 - Laserfiche WebLink

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that will be approved in December. Because reserves are not available to fund the entire project, the balance would be funded through either lease revenue or capital improvement bonds with a tax levy to fund the debt. Now, with an understanding of current building financial obligations and future needs, the Council can better decide how and when to address the needs at the ice arena. The ice arena currently has debt outstanding on the 1996 bond issued to construct the Olympic rink; the final payment is due in 2013. That debt is paid from operating revenues; however, as you know, ice arena revenues axe not sufficient to cover all of the operating and debt costs so the General Fund subsidizes ice arena operations and funds all shortfalls. Additionally, capital expenditures are usually paid from other reserve funds or the liquor fund. If the ice arena improvements are authorized now, fiznding would most likely come through a tax levy because operating revenues are not sufficient and available reserve funds have been programmed fox the public works project. Attached is an estimated amortization schedule showing the approximate levy impact of this project. If the project is constructed in 2012 or 2013 so the first debt payment is due in 2014, it could replace the existing debt with little or no additional tax levy needed assuming the subsidies from the General Fund continue. Finally, it is possible to fund the ice arena improvements whenever the Council approves the project; however, that may mean increasing taxes to pay for it. Depending upon how the Council prioritizes the ice arena project in relation to the public works project and when it is authorized determine whether it will be funded through a tax levy or through other sources that will not add to the tax levy.