6.1. SR 04-10-2006 - Laserfiche WebLink

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City of Elk River REQUEST FOR COUNCIL ACTION Agenda Section Meeting Date Joint Meeting with Parks & April 10, 2006 Recreation Commission Item Description Pinewood Financin Item Number 6.1. Prepared by Lori Johnson, City Administrator Reviewed by Introduction The Council needs to determine the funding source(s) for the Pinewood Golf Course purchase. Discussion The item has been discussed briefly at several Council meetings with the intent that a fInal decision on the funding source(s) for Pinewood would be made when the lease and purchase were signed. These documents were executed on Thursday at which time the $300,000 initial payment and fIrst year lease payment of $90,000 were paid to Paul and Pamela Krause. The Council received a letter from the Parks and Recreation Commission with the Commission's comments on funding this through the Park Dedication fund in the March 20, 2006, packet. My memo for the March 6, 2006, meeting included possible funding sources and detailed fmancial information was distributed at the meeting. If you do not have this information and would like another copy, please contact me. Briefly, two funding sources available in addition to Park Dedication include the RDF Reserve and Capital Outlay Reserve. Financial Impact Lease payments of $180,000 and purchase price of $1,800,000 plus interest. There are possible operating shortfalls in the fIrst years of operation that will need to be funded. (Like the annual Ice Arena shortfall that is funded by the General Fund, any projected shortfall can be included in the General Fund budget or a different source may be identifIed after the shortfall is determined at the end of the year.) Attachments Action Requested The Council is asked to identify the funding source(s) for the principal, interest, and lease payments for the Pinewood Golf Course. s: \ Council\Lori\2006 \Pinewood Financing.doc