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APPROVE BUDGET AMENDMENT FOR THE PURCHASE OF LAND FOR SENIOR HOUSING DEVELOPMENT By: Diana Lurid, Finance Officer Background: The City is in the process of acquiring land known as the "Law property" for the future site of the Senior Center. The development of the Senior Center will be funded through the sale of tax increment and I-IRA bonds, but the land itself, will be acquired through the City's funds on hand. Appraisals have shown that the land will cost approximately $250,000. The City has two funds that would be suitable, and have the necessary dollars available, to complete the land purchase. The funds are the Public Facilities Construction Fund which can be used for the acquisition of land and construction of public facilities, and the Highway 47 Fund, which was created solely to account for the expenses associated with the Highway 47 project. The Highway 47 Fund was the fund designated to receive the 1997 year-end excess revenues, in which an amount of $731,943 was transferred at year-end. After this year-end transfer was completed, it was determined that the Highway 47 project would be more suitably funded through tax increment and MSA funds, as these dollars were more restrictive of their use, and which the Highway 47 project qUalifies. Currently, $517,055 remains of the excess revenue transfer, as $90,070 was transferred for mid- year budget amendments and $124,818 will remain to fund Highway 47. By allowing the transfer of $125,000 from each of the Public Facilities Construction Fund and the Highway 47 Fund, the City would be able to fund the purchase price of the land for the Senior Center. Staff Recommendation Staff recommends that $125,000 be transferred from the Public Facilities Construction Fund and $125,000 from the Highway 47 Fund to offset the costs of the purchase price of the land for the Senior Center. Based on the above, staff recommends Committee approval of this budget transfer. Committee Action: Recommend Council approval of Resolution 98-11- Approving Budget Amendment for the transfer of funds to acquire the land for the Senior Center.