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MINUTES <br />City Council <br />March 5, 19H6 <br />Storm may be changed to July l, 1986 or January 1, 1987. <br />Water <br />Drainage Scalze asked what would happen if the money was not spent within <br />District the three-year period. <br />(Cont.) <br />Farnham replied that it would then become taxable. Farnham reported <br />that cities will spend this money to protect their bond ratings. <br />Scalze questioned the ability of the City to buy Spooner Park within <br />a three-year period. Scalze pointed out that the City has been <br />aggressively seeking to purchase the park for the last year and a <br />half and the School District has not decided if they are going to <br />sell it. <br />~lardini pointed out that the City has other funds with which to <br />purchase Spooner Park and this purchase could be left out of the <br />bonding. <br />Fahey felt that the City's needs might lie between the $1.2 million <br />and the $1.8 million. <br />The Engineer suggested that the Council look through his report <br />and at the next meeting the Council could decide which projects <br />it would undertake and how much money it will need. <br />Farnham informed the Council that the bonding could be structured <br />to drop mills to 8 if the Council wished by running the issue out <br />longer. <br />The City Clerk reported that the City's debt will be dropping in <br />the future. If the City has no improvements for a few years and <br />then starts developing again, the mill rate will increase. The <br />Clerk felt it might be to the City's best interest to keep the <br />rate consistent. <br />Fahey agreed that the mill rate should be kept as consistent as <br />it can. <br />Council discussed the fact that the City assesses 80% of water <br />improvements and bonds for 20%. Fahey suggested that perhaps <br />this policy should be changed and water improvements assessed <br />1Q0% as other cities do. Fahey suggested that the City could <br />notify residents that they had a period of time to petition for <br />improvements and get the 80-20% rate before the Council changes <br />this policy. <br />The Clerk reported that the City has about $4 million in water <br />improvements to make. The Clerk pointed out that the interest <br />rates are low and the City may not see these rates again. <br />Council also discussed the way the City's water tower and main <br />waterlines were financed and this effect on the City's mill rate. <br />Page -4- <br />