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MINUTES <br />CITY COUNCIL <br />NOVEMBER 15, 1993 <br />the 1978 Bond issue be allocated to capital improvement <br />purchases. That could occur through 1997, however, in <br />1998 and 1999 those funds would be necessary for debt <br />reduction. <br />Scalze pointed out that if these funds are not <br />allocated to capital improvement purchases, they would <br />be used to reduce taxes. <br />The Administrator replied that this was true, but <br />pointed out that the City has not set aside any money <br />for capital improvement purchases in the last few <br />years. The $84,000 has been freed up from debt <br />reduction and can be used to fund capital improvement <br />items without increasing the levy. <br />Saalze pointed out that if taxes were reduced, the levy <br />would have to be increased to provide for capital <br />improvements. Therefore, the $84,000 is actually an <br />increase in the levy to purchase capital improvement <br />items. <br />Morelan pointed out that there would be no increase in <br />the levy from last year associated with this $84,000 <br />allocation to capital improvements. <br />The Administrator pointed out that allocation of the <br />$84,000 generated in debt service reduction is a plan <br />for starting to address the City's capital improvement <br />needs. These funds will not be available in 1998 and <br />1999, however. The Administrator pointed out that the <br />City's debt service falls off dramatically in the year <br />2000, and there are then dollars freed up for capital <br />improvement items and/or tax levy reductions. The <br />$84,000 per year will not fully address the City's <br />needs, but will help. <br />The Administrator reported that he is working on a 5 <br />year capital improvement plan to give the City a better <br />idea of its needs. The Administrator reported that <br />this is an area the City needs to begin planning for. <br />Morelan felt that the $84,000 will help hold the City <br />for a while in the area of capital improvements, and he <br />was in favor of allocation of these excess debt service <br />funds to capital improvement purchases. <br />It was the consensus of the Council that the workshop <br />meeting should be continued to Monday, November 29, <br />1993 at 7:00 P.M. at City Hall. <br />ADJOURN There being no further business, the meeting was <br />adjourned at 8:35 P.M. <br />Page 13 <br />