Minutes - Council Work Session - 07/29/2008

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Councilmember Elvig questioned how Public Works was able to stay constant. Finance Officer Lund advised that although gas and utilities had increased, the Public Works portion of expenses were put towards the utilities fund. She advised that Assessing had a large increase, as there had been an approved contract with the County. She advised that the County had not asked for an increase in the last five years. She advised that within Public Safety the police protection is the largest amount with the fire department decreased because of the' truck that had been purchased in 2008. She advised that Public Works included engineering, streets, and snow removal. She explained that a small increase is due to the three percent cost of living increase and that several members of that department are still on the six-step program. She advised that within Parks and Recreation are the streets and parks and recreation. She advised that there was also miscellaneous contingency which had funds put aside for gas costs for the building and fuels costs for City vehicles. She advised that each department head would then speak on their expenditures for the Council. She advised that the City would be proposing to have an in-house cleaning service which would save them about $17,000 a year. She advised that the debt service for the building goes up greatly in 2009. She explained that when they had bonded the building in 2005 they had expected the growth rate to continue and had not predicted the downturn in the economy. She suggested an intemalloan of $1,000,000 for 2009,2010, and 2011. She explained that in 2012 the TIF districts would return. She advised that they could borrow from the utility fund and pay it back over the next 20 years with each payment being $80,243. She advised that the purchase of the Barry Carlson property would also be paid back to that fund at $59,527 for the next 20 years. She explained that if they did not choose to do this they would have to double up on payments in 2010. She stated that the Council had been adamant on staying at 39 percent for the tax capacity rate but advised that the only way to do that would be to not fund those two payments and then double up on those payments in 2010. Councilmember Elvig questioned if those payments would start in 2010. Finance Officer L und responded that the City could start paying those loans back in 2009 because the payments would need to be made in 2010. Councilmember Elvig confirmed that if they could advance those TIF dollars now they would not be in this situation. Finance Officer Lund responded that was not an option to do that. Mayor Gamec questioned if the in-house cleaning would cover window cleaning and things of that nature. Finance Officer Lund advised that window cleaning is in the budget and explained that this would cover general cleaning inside the building. Mayor Gamec had thought that they had taken funds from the capital fund at one time and questioned if that could be done again. He explained that he did not want the balance in that fund to go too low, but thought it would be an opportunity to save some money. City Council Work Session / July 29, 2008 Page 7 of 15