09-23-2019 Council Packet - Laserfiche WebLink

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3 CITY COUNCIL WORK SESSION DRAFT Council Member Stoesz asked about a data center and sharing of heating and cooling; 91 he’s experienced some negatives with that model. Staff hasn’t specifically looked at the 92 concept but there is certainly discussion about water/cooling needs for technology 93 centers. 94 95 Mayor Reinert asked for more information on Elmcrest and sharing costs with other 96 cities. Director Grochala remarked that having an appropriate agreement in place would 97 prevent a project coming forward and the cities getting bogged down for too long 98 working out their details. Mr. Grochala added that part of moving forward will be 99 looking at additional interconnect (utility). 100 101 Staff would like to continue working on efforts in this area. Mayor Reinert said he 102 supports continuing the efforts. 103 104 4. Tax Exempt Financing Guidelines – Finance Director Cotton noted that back in105 2005 the City adopted these guidelines (associated with the YMCA development in the 106 city). In 2018 the City granted host approval on a couple of developments. At that time 107 the Council expressed the desire to update the policy as needed. 108 109 Ms. Cotton noted that the City’s bond counsel, Julie Eddington of Kennedy and Graven, 110 reviewed current policy and has made recommendations as noted in the written staff 111 report. She specifically pointed out the one percent administrative fee and how that has 112 translated into funds to the City in the past. Staff is not recommending any change in that 113 fee. She also noted that Lyngblomsten has expressed an interest in this type of financing 114 so staff would prefer to be prepared if an application were to come forward. 115 116 Council Member Manthey suggested that if this is being considered to bring funds to the 117 City, shouldn’t the percentage be higher with the understanding that it could be adjusted 118 downward. Ms. Cotton explained that the one percent is a figure consistent with other 119 communities in the area so raising it could result in no requests. 120 121 Council Member Stoesz asked if the charges could be added to the City Fee Schedule so 122 the Council will see it each year. Director Cotton concurred. 123 124 The council concurred that they would consider the new guidelines at the next council 125 meeting. 126 127 5. 2020 Budget -128 129 Finance Director Cotton noted her staff report and updated gap analysis. She said the 130 only change from the council’s last view is the budget cuts proposed by staff and the use 131 of $100,000 from the Closed Bond Fund. She noted that funds have been added back 132 into the Pavement Management fund. She stated that the changes would bring the levy 133 increase to 8.3 percent with a tax rate of 41.31 (a reduction from 2019). That would still 134 be a significant year over year change in the City levy. It was suggested that the use of 135