08-22-07 Council Minutes - Laserfiche WebLink

Home Browse Search

MINUTES CITY COUNCIL AUGUST 22, 2007 Council discussed the possible use of the LGA fwrd to either achieve a U% net levy increase or to buy down the increase. McGraw noted that if the City uses LGA to achieve a 0% increase and LGA is taken away in 2009, the City will need to levy a large increase to make up for the loss of this funding. Keis suggested that the City use half of the LGA funding to buy down the levy in 2008 and the other half to buy the levy down in 2009. Montour pointed out the snowball effect that dependence on LGA could have. The Administrator reported that staff is estimating it would take $172,000 of the $225,000 LGA allocation to buy the levy down to zero, but is hopeful we can reduce that number. McGraw suggested that the City needed to be very cautious in dependence on LGA especially with the disasters that have occun~ed in the State within the last 30 days. He pointed out that the State's first target is usually LGA dollars. Keis felt that the City needed to use some of the LGA dollars to buy down the levy. The Administrator reviewed an article noting discussion by another city relative to the caution they use in not becoming dependent on LGA dollars. He also noted the impact that loss of LGA, the State's taking of some of the City's Market Value Homestead Credit, and the shift in school district funding has had on the City's levy needs. Blesener advised extreme caution in the use of the LGA dollars, and noted that further discussion of this issue will occur at the September 12°i Budget Workshop Meeting. THE The City Administrator reported that the developers of The Preserve PRESERVE have a large balance of unpaid development review costs due the City SF,TTLF,MENT for the processing of this development. The developers signed a Cost AGREEMENT Agreement with the City at the time the development was proposed agreeing to pay all costs associated with the review and processing of their development proposal. The developers are now asking for a Letter of Credit reduction, and as part of this discussion, the issue of the unpaid development costs has been raised. The Administrator indicated that the developers are taking issue with City Attorney costs associated with the legal proceedings relative to this plat. The Administrator proposed that the approximately $15,000 in legal fees be eliminated from the costs due from the developers. The developers have agreed to pay the remaining costs. 7