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I <br /> <br />I <br />I <br />i <br /> <br />Chairman Heitman pointed out that elections are every 4 years and that is <br />quite a while to live with something that is bad. <br /> <br />Mr. Schnelle noted that mayor and 2 councilpersons are elected every 2 years. <br /> <br />Mr. Burggraaff stated that in his experience he has seen that councils are <br />generally responsive to people that attempt to influence them in a lawful <br />manner. In every city he has worked in, there are always 3 or 4 people who <br />attend every council meeting and those people kept council on their toes. <br />Councilmembers react to that kind of thing. <br /> <br />Chairman Heitman replied that quite honestly, Council is not obligated to <br />react to those people. <br /> <br />I <br />I <br />I <br /> <br />Mr. Burggraaff replied that the people have to let the process work too. <br />Chairman Heitman replied that he has trouble accepting that. <br /> <br />Mr. Burggraaff referred to Section 7.09 and inquired as to the purpose of <br />excluding trust and agency funds. <br /> <br />chairman Heitman replied that the intent was to make sure funds earmarked for <br />a particular purpose remain for that purpose. <br /> <br />I <br />I <br />I <br />I <br />! <br />! <br />i <br />I <br />I <br />! <br />I <br /> <br />It came out in the discussion that the term 'transfer' does not mean transferring <br />money from one fund to the other, but rather it is an accounting term given <br />to the transaction of taking money from a fund and putting it into the general <br />fund to cover the purchase for which it was earmarked for. City Accountant <br />Moen stated that she does not have any suggestion for language to describe <br />this accounting transaction other than 'transfer'. <br /> <br />Mr. Schnelle stated that all the city's various funds are earmarked for a <br />specific purpose and are used for just what they were.specified for and <br />any new spending would be in the budget supplement. <br /> <br />Commissioner Bauerkemper noted that the League Of Cities model charter uses <br />the same language as this Commission has chosen. <br /> <br />Mr. Burggraaff suggested the Commission get legal advice on this section. <br /> <br />Discussion ensued regarding issuance of obligations, certificates of anticipation <br />and certificates of indebtedness. <br /> <br />City Accountant Moen stated that there is some confusion and that certificates <br />of anticipation and certificates of indebtedness are two different things. <br /> <br />Mr. Burggraaff stated that the charter is more restrictive than State law. <br />The way it reads there would be a referendum on the issuance of tax increment <br />bonds. There is a process for tax increment bonds and.it doesn't work very <br />well with a required referendum. When would you hold the referendum? <br />Before negotiations with the developer or after the negotiations, which may <br />take months. Having a referendum could discourage the developer from putting <br />up front end money. Mr. Burggraaff stated that a tax increment project in <br />Richfield right now requires about $10,000-$13,000 up front on a $4,000,000 <br />project. <br /> <br />Chairman Heitman stated that is a very small percentaf~e and the developer <br />should expect a certain amount of risk. <br /> <br />CC/November 10, 1983 <br /> Page 7 of 1i <br /> <br /> <br />