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Councilmember Hendriksen stated that he would be more comfortable with any subsidizing the <br />City offers be included in the TIF District. <br /> <br />Councilmember Anderson replied that there are not funds available in that TIF District. <br /> <br />Councilmember Hendriksen stated that currently the City has to be borrowing funds from <br />somewhere. He stated that the City built a pond that needed an outlet, but the City did not have <br />the funds to construct the outlet, which would mean that someone did not do their job. He did <br />not see this case as a being a precedent setting situation. <br /> <br />City Engineer Olson stated that precedent would be set as far as correction of drainage problems, <br />which has already been set with using the Storm Water Utility. <br /> <br />Motion by Councilmember Kurak, seconded by Councilmember Zimmerman, to recommend that <br />the City Council authorize $108,100 be taken from the Storm Water Management Fund and the <br />Storm Water Utility fund be reimbursed. <br /> <br />Further discussion: Mayor Gamec stated that it would be interesting to know if it would be <br />better to take the funds out of the TIF District. He inquired if staff needed an answer on the <br />funding right away or if there would be time to research the option. Finance Officer Lund <br />replied that using TIF Funds would require budget amendments and would put the District <br />further in the red. Councilmember Hendriksen expressed concern that it does not set precedent <br />for what the City would do in the future. He stated that he does not think it is the right idea to <br />build something that they know and acknowledge an outlet is needed, but ignore that fact. <br />Mayor Gamec inquired if they should borrow from the Storm Water Utility fund and then pay it <br />back. Finance Officer Lund replied that there is adequate funds in the Storm Water Management <br />fund to cover the entire cost. Councilmember Hendriksen stated that he would feel more <br />comfortable if the funding came from the TIF District and questioned if there was a way to <br />borrow from another fund and then pay it back. Finance Officer Lund replied that staff would <br />have to write another case identifying where the funds would be borrowed. Councilmember <br />Hendriksen inquired if the Storm Water Utility fund is operating in the red how is it functioning. <br />Finance Officer Lund replied that they are borrowing from other funds with interest. City <br />Administrator Norman stated that original direction given by Council was to use funds from the <br />Storm Water Utility fund and some questions were raised by a Councilmember so staff agreed to <br />bring it forward as a case. Councilmember Anderson recommended that language be added in <br />the motion noting that this case not be precedent setting because of the background. <br /> <br />Amendment by Councilmember Hendriksen, seconded by Mayor Gamec, to add to original <br />motion that the case not set precedent due to the unusual history of the case. <br /> <br />Amendment carried. Voting Yes: Mayor Gamec, Councilmembers Hendriksen, Anderson, <br />Kurak, and Zimmerman. Voting No: None. <br /> <br />Finance Committee/September 11, 2001 <br /> Page 4 of 7 <br /> <br /> <br />