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Budget Worksession Memo <br />November 25, 1996 <br />Page 6 <br /> <br />CIP PROJECTS...ICE ARENA AND RECREATION FIELDS <br /> <br />The city committed to financing $50,000 of the ice arena project with the <br />understanding that over a short period of time Youth Hockey would repay the <br />city for this up front investment. While the city cannot technically loan <br />organizations money, we do have full confidence that this city investment <br />into the project will be recaptured. The internal source of funds for this <br />$50,000 expenditure is recommended to be the city self-insurance fund. If <br />this money is needed for self-insurance purposes before the ice arena <br />investment is recaptured, then staff will present the Council with different <br />options for this expense. <br /> <br />In addition to the expenditure noted above, the city also committed $50,000 <br />toward the ice arena project. This city expenditure will not be recaptured <br />and was going to be the last contribution to the project if needed. It is clear <br />at this point that all $50,000 from the city will be needed. It is recommended <br />that the source of funds for the city contribution to the project be 50 percent <br />from the city capital projects reserve and 50 percent from the city <br />equipment/infrastructure reserve that is undesignated. <br /> <br />It should be noted that the ice arena project is still on schedule but may be <br />slightly delayed by a few days in being opened to the public. At this time it <br />still looks like it will be open by the weekend for the January 17, 18, 19, <br />Youth Hockey Tournament and the January 18 school game. The ice arena <br />project is a "bare bones" facility, and as such, does not have some of the <br />building components that some people would say make the project fully <br />completed. We are still on budget, but the contingency fund is very tight and <br />if "value added" changes are desired by the Council, the city is going to have <br />to increase its donation/contribution to the project above the $50,000 level <br />noted in the preceding paragraph. The source of any additional city funding <br />for value added components to the project would be the same... 50 percent <br />from the city capital projects reserve and 50 percent from the city <br />equipment/infrastructure reserve that is undesignated. <br /> <br />Approximately $200,000 is needed for the development of the four field <br />recreation complex on the Cass property. This is being viewed as Phase I <br />(also "bare bones") of the recreation field complex. Approximately $60,000 of <br />this expenditure is scheduled to come from city park dedication funds. The <br />balance, approximately $140,000, has to be funded from other city sources. <br />Some of this money will be repaid to the city over the next six years. Boy's <br />youth baseball and girl's youth softball are each contributing $5,000 per year <br />for the next six years for the development of these fields. As this money is <br />received it will go back into the fund that the city uses to finance the balance <br /> <br /> <br />