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Massopust commented the reason that the debt payments would be paid for through internal sources until 2025 <br /> is because at that point two different financial occurrences happen that mitigate the impact to the overall <br /> property tax levy. The first is a TIF district decertifies resulting in an overall increase to the City's tax capacity <br /> thus lowering overall tax rates. The second is that 2025 is when the City of New Brighton will complete its <br /> Debt Free Streets financing project. This means that when the costs of completing one street project are added <br /> to the property tax levy, another falls off This ensures that the levy is stable and we are able to pay for our <br /> street projects without issuing external debt, which is common for municipalities. Currently, budgets include <br /> the addition of funds to account for completing this process,but in 2025 will no longer need to do that. Waiting <br /> until 2025 to include the debt service payments allows the City to lessen the impact to the property tax levy. <br /> Massopust stated there are some key factors for the Council to consider in this discussion and decision. These <br /> include, but are not limited to: the value of improved parks and recreation facilities in our community, the <br /> overall property tax impact, the trade-offs associated with pursing this plan (we cannot go back on paying for <br /> debt service), the fund balance levels of internal funds, the current interest rate environment, and alternative <br /> courses of action for park facility development and redevelopment. Staff was seeking input on if the Council <br /> would like to keep pursuing this course of action, or not. If Council would like to go forward with the <br /> implementation plan as proposed staff would begin working with bond counsel on a resolution authorizing the <br /> sale of bonds and the associated work in order to take advantage of historically low interest rates. <br /> Fink explained the former Parks Comprehensive Plan was adopted in 2006 which included the last major <br /> infusion of parks funding. Staff provided further history on the comprehensive plan and discussed what it <br /> would look like to bond for an initial $8 million or$10 million. Park assessment results were reviewed with the <br /> Council along with the Phase I projects. It was noted the cost for these projects were estimates at this time. <br /> Massopust reported if the City were to go this route, the City would need upfront capital to fund the park <br /> projects and noted certain financial realities exist that would allow the City to take advantage of to lessen <br /> impacts on the levy. He stated a TIF District would decertify on 12/31/24 and the City's Debt Free Streets <br /> program would be fully funded by 2025. He explained as proposed, the City would bond for funding to <br /> complete Phase I of the plan and would pay back the principal and interest from internal sources until 2025. <br /> Brenda Davitt commented further on how an $8 million bond and a $10 million bond issuance would impact <br /> the City and its residents. The pros and cons of the different bond issuances were discussed with the Council. <br /> It was noted there were historically low interest rates at this time. Staff commented further on the impacts of <br /> the bonding and requested comments or questions from the Council. <br /> Mayor Niedfeldt-Thomas asked if no action was taken from the 2006 Parks Comprehensive Plan. Hicks <br /> reported this was the case noting the 2008 Great Recession impacted this. <br /> Mayor Niedfeldt-Thomas questioned if it has been 30 years or more since the City made major investments in <br /> its parks. Fink stated this appears to be the case, noting most parks were 15 years or older in New Brighton. <br /> Councilmember Abdulle inquired if the buildings that have reached the end of their useful life would be torn <br /> down or renovated. Fink explained the neighborhood centers need to be replaced and noted the golf course <br /> building only needs renovations. <br /> Councilmember Axberg asked what the median value home was in New Brighton. Davitt stated the median <br /> value home was valued at $350,139. <br /> Mayor Niedfeldt-Thomas questioned when interest rates might increase and wondered what the useful life was <br /> for parks and buildings. She asked if it was wise to have a 20 year bond in place for a park amenity that had a <br />