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services of engineering. Mr. Colton would work as a consultant for staff; he would not talk directly with the PCA. Chairperson Strommen expressed her agreement with Mr. Colton creating a strategy, rather than being the City's face to the PCA. Mayor Gamec suggested this expenditure be funded from the Landfill Trust Fund, since it is directly related to the landfill. Chairperson Strommen inquired about the original purpose of the Landfill Trust Fund, and whether there is a possibility it will be needed. Finance Officer Lund replied the fund was set up for the purpose of any liabilities once the landfill closed. The landfill closed several years ago and has changed hands since then. The fund is no longer needed for this purpose. The principal in the fund is still in place; $645,000 was used to go against the debt service of the municipal building, but that was all in interest. The current balance is $4.1 million; there were $110,000 in interest earnings last year. Motion by Mayor Gamec, seconded by Councilmember Elvig, to recommend that the City Council utilize the services of Dan Colton of Leonard, Street and Deinard, for environmental consulting services for a not-to-exceed amount of $5,000, with the funding to come from the Landfill Trust Fund. Motion carried. Voting Yes: Chairperson Strommen, Mayor Gamec and Councilmember Elvig. V oting No: None. Absent: Councilmember Jeffrey. Case #2: Authorize Acquisition of Boike Property Finance Officer Lund reviewed that at the Finance Committee meeting of June 13, 2006, staff presented financing options for the purchase of the Boike property for the future river crossing. The options presented would affect the City's tax capacity rate, as the debt service amount would become a yearly levied amount. The Finance Committee was in agreement that they wanted to see numbers from the 2007 General Fund budget and the budget's effect on the City's tax rate before they could authorize this purchase. The case was tabled. Ms. Lund explained as the 2007 General Fund budget is still being prepared, staff has examined two other options for financing the Boike property with Tax Increment Financing. The first option would be a five-year Contract for Deed with Mr. Boike. Based on the current balances in TIF District Nos. 1 and 2 the payment structure under this option would be sporadic with two large balloon payments in 2010 and 2011. The second TIF financing option would be to issue a GO Tax Increment Bond for a five-year term pledging TIF revenues to pay the debt service. With this option the projected debt service schedule is also left with two large balloon payments in 2010 and 2011. Ms. Lund explained under both financing options, TIF District Nos. 1 and 2 would be utilized to make all payments. The ability of these two districts to pay debt service is based on the projection of future tax increment revenues within these districts. The utilization of funds for debt service payments within TIF District Nos. 1 and 2 will essentially spend all available revenues in these districts for the next four to five years. Finance Committee / June 27, 2006 Page 2 of 5