01-04-90 Council Workshop Minutes

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MINUTES City Council January 4, 1990 The Administrator reported that there are commitments of $225,000 in donations for land acquisition, however, at least $300,000 is needed. The Administrator asked if the Council's intention was to include the additional $75,000 needed for land acquisition in the bond issue. The Administrator pointed out that land acquisition costs could go higher than $300,000 depending on the cost of acquiring the McNamara property. The Administrator pointed out that the additional land costs push the bond amount up to $1,525,000 plus whatever the additional financing costs are on that size issue. Boss stated that it was his understanding that the City was going to use a contingency fund for the additional land acquisition costs. Blesener stated that it was his understanding that the three charitable organizations were going to finance the land acquisition costs. Kroos pointed out that once the bonds are sold, there will be a time period that the money is earning interest. Kross suggested that the interest earnings be used toward reducing costs. The Administrator stated that this a dangerous suggestion to plan on since interest rates are declining. Fahey stated that the only way to reduce costs was to cut the size of the building down, and suggested that Boarman & Associates work with the Fire Department to determine if a 11,000 square foot building would be adequate. Morelan stated that a 11,000 square foot building was less desirable than a 12,000 square foot building. Fahey then suggested that the cost of furniture be eliminated from the budget, pointed out that there may be other ways to cover these costs in the future. Fahey pointed out that the City Council is considering adopting a regulation requiring charities operating within the City to spend a percentage of their profits within the City's trade area. Page 9