11-09-11 Council Workshop Minutes

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MINUTES CITY COUNCIL NOVEMBER 9, 2011 35E. The Director noted that there are limited revenue sources for the projects (non- assessable) outside the street projects. The cost of the non- assessable projects is estimated at $1,172,500. Staff has included an estimated $65,000 a year in City Requested Facilities Surcharge (SRFS) fees billed by Xcel. If these fees are billed over a three year period, a portion of the estimated cost of burying the powerlines would be recovered. The Director also noted that there are an additional $600,000 in non - assessable projects budgeted for in 2013 and 2014. The Director indicated that staff is considering options to provide more financial support for the Infrastructure Fund that do not include levy support. One is the use of accumulated Economic Development Funds as well as Parkland Acquisition Funds. The City also has $305,710 available for economic development projects, that were once targeted to fund the Business Revolving Loan Fund. The Director noted that the availability of low interest rates in the traditional loan market place has negated the need for this program. The Director noted that transferring this $305,000 to assist in funding the powerline project along with CRFS fees would support $505,000 of the projected $607,000 in costs to burying the powerlines. The Director then noted that Parkland Acquisition Funds are currently budgeted for the acquisition of the remaining Round Lake properties. The Fund has $816,000 available with approximately $450,000 earmarked for the Round Lake properties. The Infrastructure Fund currently has $252,000 in trail expenditures proposed for 2012. The Director reported that staff feels that supporting the trail expansion would be a reasonable expenditure of the Parkland Acquisition Fund, and recommended that the use of these funds for trails be explored with the Parks & Recreation Commission. The Director stated that it is staff's opinion that the current levy amount of $157,200 along with the fund's other revenues, will be adequate to maintain an assessable streets program for the foreseeable future. Any significant non - assessable projects will need additional funding. The Director then reviewed the 10% Fund which is supported by gambling funds. Those revenues are down due to economic conditions. The Director reported that currently this Fund supports Canadian Days Fireworks as well as some parks maintenance costs. She recommended that a balance be built up in the Fund with the possibility of paying for some playground equipment replacement. She noted that expenditures from this fund must be used for youth recreational activities or public safety expenditures. The Director reviewed the Parkland Acquisition Fund and noted that she has projected revenues to this fund based on three new homes in 2012. The current goal of this fund is to purchase the remaining Round Lake properties when they become available. The funds on hand are considered to be sufficient for this 3