Agenda - Council - 05/11/2004 - Laserfiche WebLink

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Motion carried. Voting Yes: Mayor Gamec, Councilmembers Elvig, Cook, Kurak, Strommen, and Zimmerman. Voting No: None. Case #3) Quarterly Review of Franchise Fee Collections Councilmember Elvig reported for the period ending March 31, 2004, the City received $129,839 in fi'anchise fees. $404,000 was projected to be generated in franchise fee revenue for the year 2004, and the actual collection is approximately 20 percent higher than the estimate. There was discussion amongst the committee and the feeling was that it is potentially too early in the process to know the budget will be met for the year, due to climbing interest rates and other factors. The feeling of the committee was to strongly look at this at the end of the half year, but not remove the fee at this point based on these numbers. Motion by Councilmember Elvig, seconded by Councilmember Zimmerman, to ratify the recommendation of the Finance Committee and adopt Resolution #04-04-098 authorizing the continuation of the Franchise Fee. Councihnember Kurak questioned how the recommendation to continue the franchise fee is justified with the next case that outlines the money left over from last year. Councihnember Elvig explained the Finance Committee had some of the same concerns. The feeling was regardless of what was captured last year they still have to go forward with this year's budget. He noted he was opposed to franchise fees when thdy were adopted by the Council, but understands that the budget had to be maintained for this year, and there are a lot of Capital hnprovement Projects coming forward. He stated development dollars should go towards things that are causing development costs in the City. That is where they segregated the two issues. The consensus of the Council was to table the discussion of Case #3 until the discussion of Case #1 has been completed. Case #1) Authorize Transfer of General Fund Revenues Councilmember Elvig explained it has been the policy in the past that the City does not take any extra revenues forward from the past year in the general fund budget. The excess revenues have been transferred to the following funds: Equipment Revolving Fund (10%), Facilities Construction Fund (40%), and Public Improvement Revolving Fund (50%). After meeting the fund balance requirements at year end, $650,956.94 remained as excess revenues to be transferred from the General Fund. Staff has suggested rather than the transfer of funds according to the policy, a more appropriate transfer would be as follows: Facility Construction Fund: PIR Fund: Equipment Revolving Fund: $485,869.35 - City Hall 100,000.00 - Park and Ride 65,096.59 - Transfer to future park fund City Council/April 27, 2004 Page 14 of 35