Minutes - Council - 04/27/2004 - Laserfiche WebLink

Home

Cotmcilmember Elvig explained the Council may choose to have a Park Fund created and transfer the portion that is designated to the Equipment Revolving Fund at a later date. The recommendation of the Finance Committee was to move forward with staffs recommended allocation of the funds. Councilmember Kurak stated she likes the idea of the Park Fund. She noted when the franchise fee was set up the purpose was to balance the budget for 2004, and it was not known if there would be an overage fi'om 2003 to 2004. She questioned why the committee feels more comfortable with one more quarter of franchise fees. Councihnember Elvig stated as a councihnember he was not in favor of the franchise fees, but appreciates the Council's concerns about making sure there is a positive budget. On the other hand he believes if they are going to make improvements in the City they have to have some sort of savings account to draw fi'om. These overages are primarily from planning check fees and permit fees, and growth should pay for growth. Councilmcmber Kurak stated when the Council discussed the franchise fee it was divided and she agreed with tho Fees in order to ensure the City has the needed funds to make ends meet. She is not sure that is the case now. Councihnember Elvig indicated he is not sure they can predict a certain excess coming yet this year. By mid year they should see a trend in planning check fees and permits. Councilmember Kurak questioned when the sunset is set on the franchise fees. Councihncmber Elvig replied the sunset was set for one year. He noted the Finance Committee strongly urged they look hard at the fi'anchise fee at mid year. Councihnembcr Strommen indicated the Finance Committee shared these concerns. Part of the issue with the excess revenue is that the proposed funds are the things the Council committed to. There needs to be enough funding for those projects. In another three months they should tal¢e a hard look at the fi'anchise fee and have a better idea of where they are sitting. Councihnember Elvig noted the good news is the City is generating excess dollars. He agrees with staff's position to take a little more time to be sure they are at the turning point. Councilmembcr Kurak inquired if the transfer to the Park Maintenance Fund could be a little higher. Councilmember Elvig noted the Park and Ride, which is coming soon, needs to be funded. Dollars in this fund would hold the bonding requirements down. Mayor Gamcc stated he does not think they can review the franchise fee until the end of the year. They will not see the costs that are coming up until this fall and they have to be sure they cover City Council/April 27, 2004 Page 15 of 35