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Assistant to the City Administrator Brama stated the numbers, as far as sale prices, were derived <br />based on the deal prices developed by the Council and timing of sale was developed by Ehlers. <br />City Administrator Ulrich stated the timing of land sales was developed by Ehlers based on <br />consultation with staff. <br />Finance Director Lund noted that TIF is to pay back funds for improvements and it is the <br />Council's discretion on how to spend those dollars. <br />Mayor Strommen recalled a number of items that were based on future land sales. <br />Finance Director Lund stated that was done for the Armstrong and 116 projects because funding <br />sources have not yet been identified. <br />City Administrator Ulrich stated major infrastructure costs are intended to be funded from TIF. <br />Mayor Strommen stated she wanted to assure that future land sales hadn't been intended for <br />multiple projects. <br />Finance Director Lund stated Flaherty & Collins, if sold, has to pay the City $1.3 million from <br />TIF District #1 plus the principal on the Note, which has an 8.5% interest rate totaling about $1 <br />million. Should that occur, those funds would also be available. <br />City Administrator Ulrich stated staff is proposing a five -year bonding program for roads and <br />then switching over to land proceeds. Because land sales are one -time money, another funding <br />source would have to be determined if developing an annual road program. <br />Finance Director Lund reviewed 2014 property taxes for a $150,000 house value, noting that <br />based on the current proposal, the 2015 property taxes (Ramsey's share) for that same house <br />would increase by $307. <br />Mayor Strommen stated most is attributed to the evaluation increase since the City's rate would <br />be lowered. <br />Finance Director Lund confirmed that was the case. She presented the Personnel Services <br />budget. Changes in personnel from 2014, includes two new staff positions and increases in <br />hours for two employees. These changes result in a net increase of $131,000. <br />Councilmember Riley asked if the new positions are based on increased activity. <br />Finance Director Lund stated the permit position will be offset by permit revenues and the park <br />maintenance position would bring staffing levels to that of 2009, which is a Strategic Planning <br />item. <br />Mayor Strommen agreed the personnel increases are reflective of activity and need. <br />City Council Work Session / August 11, 2014 <br />Page 3 of 9 <br />