Agenda - Council - 02/12/2019 - Laserfiche WebLink

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City Administrator Ulrich provided additional details, noting that 25 percent of the funds would come from the sewer and water fund as a portion of the facility would be used for that purpose. It was noted that there are additional funds available as unrestricted in the landfill trust fund that could also be used on this project. Councilmember Kuzma asked the recommendation from staff for the best -case scenario. Finance Director Lund replied that she would recommend option three or option four, to ensure bank qualification and provided additional clarification. She stated that $3,750,000 would come from the sewer and water funds as that would equate to 25 percent of the project cost. She confirmed that those are available funds and would not be paid back. She explained that for option three, the additional funds would come from an internal loan from the sewer and water fund in the amount of $3,750,000 which would be paid back over time. She stated that in order to get to option four, those two funding options would be utilized with an additional $2,000,000 being contributed from the landfill fund. She confirmed that contribution from the landfill fund would then close out that account and the funds would not be available for future projects. Councilmember Musgrove arrived at 5:52 p.m. Councilmember Shryock provided an example of how this debt would interact with the road debt and received confirmation. Councilmember Kuzma acknowledged that the facility is needed but struggled that this would add two percent to the levy, with the increase for personnel and would not even consider any additional budget considerations. Councilmember Shryock noted that this is simply a planning step at this point and would not lock the Council into a decision at this time. Mayor LeTourneau stated that there seems to be consensus about the need for the facility, but the discussion is when that will take place and how. He stated that once the financing is decided the Council will need to weigh the budget implications. He stated that this is an investment in the community, which does cost money. He stated that the question will be whether the Council is willing to make that investment; it will also have an impact on the other budget discussions that are made. He stated that the Council is not making a decision at this time but is weighing different funding options. He stated that he would prefer funding option four, as that would bring the most to the table and slow the cost implications on the budget and levy. Councilmember Shryock agreed that she would prefer option three or four. She asked the balance of the landfill trust fund. Finance Director Lund replied that the balance is $2,500,000. Mayor LeTourneau stated that the work at this point is to structure all the elements to determine the most attractive funding options. City Council Work Session / January 22, 2019 Page 2 of 8