HomeMy WebLinkAbout02-24.~
CITY OF LAKEVILLE
PARK BOND REFERENDUM TASK FORCE MINUTES
. FEBRUARY 24, 1994
Task Force Chair Kevin Illa called the meeting to order at 7:00 PM and welcomed
the 20 members who were present. Minutes of the February 10, 1994 meeting were
discussed. On page 2 4th paragraph, it should state that soccer registrations
are projected to be over x,000 by the year 1995.
Finance Director Dennis Feller introduced Jer Shannon of Springsted, Inc., the
City of Lakeville's financial consultant for over 2~ years.
Mr. Shannon stated that the City currently has outstanding debt on one park bond
which was issued in 1986. The bond was recently refinanced at an interest rate
of 4.7%.
Moody's Investors Service is a credit rating agency which has rated Lakeville
with a favorable "A" rating due to its good debt management policies, relatively
short term outstanding bonds, and low per capita debt. When Moody's reviews a
community's credit rating status, one of the major factors is its overlapping
debt -- the combined debt burden as a result of city ; school and county bond
issues. Even though the City of Lakeville has a relatively low per capita debt,
the school districts have incurred a significant amount of debt in order to
accommodate the growing student population.
The proposed park bond issues would be amortized over a 20 year period in order
to balance the overall interest cost and tax levy for residents. Schedules and
. examples of tax impact for property owners was based on an assumed current 5
interest rate for tax exempt long term debt. Assuming the referendum passes in
1994, the first tax levy would be payable m 199 .
Task force members addressed the following questions of Mr. Shannon:
How will population growth affect the tax levy in ten years ?
Tax rates which are the result of bond referendums are levied based on market
value. As the community grows, market value of property within the community
will increase, thereby resulting in a lower tax rate.
Would the City speculate on land and lease it for some other purpose until such
time as it is needed for City parks ?
City staff pointed out that the land which is purchased as part of the park
bond referendum would usually be for the purpose of meeting immediate needs or be
designated for conservation purposes.
Why is this type of debt the most difficult to issue?
Minnesota statutes require that l onds issued for park purposes be. approved by
referendum. As such, it is incumbent upon the community to convince voters of
the need in order to 'ustify the increase m taxes. Funding for other types of
bond issues, such as ~or construction of water treatment plants or improvement
projects, do not require voter approval.
What would be the impact of an increase in interest rates ?
• A 1 % increase in interest rates on a $1 million issue amoritized .over 20 years
would result in increased interest cost of about $7,200 per year.
• Park Bond Task Force Minutes
February 24, 1994
Page -2-
What would be the benefit of rep aying the debt over a shorterperiod of time?
Overall interest costs would be less, however, annual principal payments would
be much greater, thereby resulting in a significant tax increase .for residents .
Task Force Chair Kevin Illa thanked Mr. Shannon and introduced City Administrator
Bob Erickson who would discuss issues relating to the three school districts in
Lakeville.
New information from Farmington School District # 192 indicates their next
elementary school will be within the boundaries of the City of Lakeville in the
general vicinittyy of 170th Street and Pilot Knob Road. Because the school
boundaries w11 include residents from several Lakeville subdivisions and
neighborhoods, Lakeville has offered to be partners with Farmington in the
development of a school/park facility. A census of the area last year showed
many. young families moving into the area and staff feels this will be a cost
effective way of addressing park needs.
An upcoming ISD # 196 referendum will request $78 million for funding a new high
school, secondary facilities and new elementary schools. Sources have indicated
that an 80-acre parcel north of 160th Street in the Galaxie Ave./Pilot Knob Road
• area may be developed as a school site.
ISD #194 is currently completing its eigghth elementary school and site selection
for the 9th elementary is ongoing m t11e north half of the community. Mr.
Erickson feels the school district has done an excellent job meeting the
challenges of growth in the community while dealing with adverse weather and soil
conditions in the construction of new facilities.
Mr. Erickson praised the people who had the foresightedness to purchase Ritter
Farm Park many years ago. Staff needs to continue to work closelyy with other
governmental agencies, such as Dakota County, to acquire property for a variety
of uses such as trails and conservation areas. He also stated the per capita
debt is low because the city's budget has been managed carefully and revenues
from liquor sales have been available for such projects as the police station
expansion.
Task Force members asked Mr. Erickson several questions:
With all the wide open space remaining, why is it so difficult to find a site
or new schools ?
any areas have already been purchased by land speculators and the price is very
high. Ground conditions are not conducive in all locations and it is very costly
to make land and soil corrections through grading. The site needs to be easily
accessible and the location needs to be considered for future sale or reuse when
no longer needed as a school, as the population ages... Following its use as it
school, it may be able to serve the needs of senior citizens as housing, or be
• sold for commercial use.
Park Bond Task Force Minutes
February 24, 1994
• Page -3-
I'm getting the impression that the thinking is too small. If in fact there
are so many needs, why not go for a larger referendum ?
The "pain threshold" or the amount peo le may be willing to have levied for a
bond referendum, is estimated between ~1.5 and $2.5 million. It was suggested
that the land purchases be separated from the development of facilities on the
ballot, giving people choices on two separate issues. The City constantly
strives to improve its credit rating and the task force must consider the impact
of a bond referendum on both. ours and the schools' credit/bond ratings.
Chair Illa introduced Renee Brekken, Recreation Supervisor, who discussed adult
athletic needs in Lakeville. All adult sports, with the exception of Men's and
Women's Softball leagues, are run by the Parks and Recreation Department. This
includes Co-Rec softball, volleyball, sand volleyball, basketball, and baseball.
Growth is expected in all sports and projections are based on patterns since
1989. Sports such as Co-Rec volleyball and sand volleyball are growing faster
than softball or baseball.
Presently, Aronson Park is the only facility with fields large enough to
accommodate adult play. Lighting fields 3 and 4 accommodated an additional 12
teams into the Men's league. It is anticipated that additional field time will
be needed by adult softball for the next three years. Lighting fields 5 and 6
could accommodate predicted growth through 1996. As the adult leagues grow, it
is hoped that the youth teams could be accommodated at a youth softball complex
• or at elementary school, fields throu hout the City. There has also been some
interest expressed in starting an Over 3~ or Over 40 softball league in the City.
Additional volleyball courts may be needed in the near future to accommodate a
wide variety of skill levels. Growth in the volleyball leaggues may be able to be
accommodated with the reopening of McGuire Junior Hig1i. An additional sand
volleyball court at Antlers or Valley Lake Park would accommodate ~~ppro'ected
growth of that sport. An additional elementary school or McGuire Junior Higli g m
would accommodate projected growth in the basketball program. The school has
been very cooperative with scheduling facilities. Currently the Co-Rec
volleyball leagues play until 10:30 PM and the Men's league plays until 12:00 AM.
Task force members also received information from Todd Rasmussen, Men's Softball
League president concerning past and projected growth. In the past ten years,
the number of teams in the league has grown 175 % . He reiterated that fields 5
and 6 at Aronson Park will need to be upgraded with, lights in the future to
accommodate growth of all adult leagues. The information also listed
contributions made to the City of Lakeville from the Men's Softball Association
for upgrades of parks and lights.
Steve Wicks, representing the Cherrywood neighborhood of Lakeville, was
introduced bx Chair Illa. Mr. Wicks stated that residents are requesting parks
nearer to their homes, and service areas of 1 /4 to 1 /2 mile. Larger park service
areas, such as Foxborou h Park, are not adequate for residents who are 3/4 mile
to one mile away. Sta~f confirmed that representatives from several neighbor-
. hoods have come to the City Council with park requests in the past two years and
to state their concerns about present distances to neighborhood parks.
Park Bond Task Force Minutes
February 24, 1994
• Page -4-
Jeff LaFavre, who lives in the Chapel Hills neighborhood, was introduced by Chair
Kevin Illa. Chapel Hills is served by Foxborough Park and residents would like
to see smaller park service areas and a neigghborhood park closer to them. An
informal~poll of 65 families in the Chapel Flills neighborhood, or about 50 % of
the neighborhood, was taken in 1993. About 83 % of those polled had children who
were 12 years of age or under. Clem Czerniak also commented that when the fields
at Foxborough are beingg used for league play, the park is somewhat limited for
use by the general public. Staff said similar problems had caused the loss of
the field at Jaycee Park.
Dan Bale Kenwood Trail Junior High biology teacher, was introduced to the task
force. ~Ie stressed the need for open space and conservation areas and the
importance of havin facilities for educational nature programs. According to
the latest survey o~ Lakeville residents, walking, biking and nature trails are
highly desirable.
Immediate needs at Ritter Farm Park are seen as three picnic shelters to be used
as picnicking and teaching stations year round restroom facilities and nature
programs. Longer term needs might ~e to expand the ELC, improve the parking lot
and increase nature programming.
Wally Potter, president of the Lake Marion Homeowners Association, discussed the
. need to preserve area on the west shore of Lake Marion, south of Casperson Park.
The propperty is currently zoned R-7 but is outside the MUSA. Mr. Potter feels
the purchase of the only remaining developable pro erty on Lake Marion to be left
in its natural state is a one-time opportumty. He stated there are many people
who want passive parks and the referendum cannot be passed on ballfields alone --
a diversified combination of needs must be shown. He feels a responsibility
exists to make a concerted effort to save the wooded areas, as they are quickly
disappearing.
Kevin Ilia discussed preliminary future agenda items and time lines for the task
force. Members will break into smaIl groups next time in an attempt to
prioritize the project list. It is anticipated that by March 24th a preliminary
recommendation can be presented to City Council for their comments.
The next Park Bond Referendum Task Force meeting
will be held on March 10, 1994
at 7:00 PM.
The meeting adjourned at 10:00 PM.
Respectfully submitted,
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