4.9. SR 11-18-2002 - Laserfiche WebLink

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MEMOllANDUM Item 4.9. TO: Mayor and City Council FROM: DATE: Pat Klaers, City Ad minis t~~/~__~ November 18, 2002 SUBJECT: Consider Payment to School District for Little Theater In September 2001 the Elk River City Council agreed to pay the School District $563,000 to "save" the Little Theater during the senior high construction and renovation project. In November 2001 the School District Facility Use policy and procedure manual was updated to include a section on the Little Theater. In December 2001 the City Council made its first of five payments in the amount of $112,600 to the School District. Community Education is responsible for scheduling use of the Little Theater. Attached for your information is some material from Community Education regarding use of the Little Theater for the past few months. In 2001 growth and development related revenues for such things as building permits and plan check fees exceeded the estimate in the budget document. By late November 2001 it was clear that General Fund revenues would exceed General Fund expenditures by a sufficient amount so that monies would be available to make the Little Theater payment without using city reserve funds. Unfortunately the same scenario is not playing out in 2002. Staff is less certain about the extent which revenues will exceed expenditures in the General Fund. Accordingly, it is recommended that the city use the NSP Reserve to make the second payment on the Little Theater. As like last year, the payment amount is $112,600. The NSP Reserve was set up in 1991 and revenues will continue to be received through 2009. The 2002 NSP revenue is slightly more than $250,000. The two expenditures in 2002 from this fund are $106,700 for City Hall debt and $39,500 for the General Fund. The remainder of the 2002 NSP revenues plus the NSP reserve fund balance are available for use at the City Council discretion. Recommendation It is recommended that the city use the NSP Reserve to finance the 2002 payment of $112,600 to the School District for the Little Theater.