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Finance Officer Lund advised that the City had taken out $1;000,000 in 2008 and did not think <br />that they should continue to do that. <br />City Administrator Ulrich explained that at one time the City was contributing annually towards <br />the depreciation of equipment. He advised that the City had not done that in the past three or <br />four years and did not think additional funds should be taken from that. account, as it is not being <br />replenished. <br />Finance Officer Lund advised that they could add funding to that account by adding to the <br />general fund. <br />Mayor Gamec was concerned with borrowing from the utility fund. <br />Finance Officer Lund advised that they are borrowing from the fund but they are also paying it <br />back. She advised that it would be more expensive right now to rebond the building than to bond <br />for a water treatment building. <br />Mayor Gamec was concerned with the utility rates and did not want to have to raise the rates to <br />cover the money that had been borrowed. <br />City Administrator Ulrich advised that it would not interfere with the rates. He advised that they <br />would be covering those funds with funds from the utility fund just until the TIF district would <br />return. <br />Finance Officer Lund advised that there had been a water study done in 2004 and the rates are <br />being charged according to that plan. She advised that the City has to have cash. flow and the <br />way to do that would be by using internal loans. <br />Councilmember Elvig stated that all of this information is supposing that there is not additional <br />building this year and no more revenue. He stated that the revenue from four, 25,000 square foot <br />buildings would take them out of this situation. He thought that they should be more proactive <br />about building their own revenue. He advised that there was an enormous amount of property <br />around them and they need to figure out how to get that started. <br />Mayor Gamec advised that would be something more long-range and something that could be <br />reviewed in the future. He stated that even if that was done today it would not be on the tax rolls <br />today. <br />Councilmember Elvig suggested that at some point they would need to get something going and <br />if they were to stay focused on generating revenue they would have a way out. <br />Councilmember Jeffrey questioned how the Council could spur that kind of climate. He advised <br />that they are in a difficult economy and he would be willing to have that conversation down the <br />line. <br />City Council Work Session /July 29, 2008 <br />Page 8 of 15 <br />