08/20/1990 Council Minutes - Laserfiche WebLink

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u72 • COUNCIL WORK SESSION AUGUST 20, 1990 that is nearly completed. Council Member Neal said that the Council does not want to be sold on a particular budget item, the item should be sold to the Administrator. Mr. Schumacher noted that the new fire station and three (3) new squads are some of the "big ticket" items. Council Member Kuether asked.'how it is determined when a squad should be replaced. Mr. Schumacher explained that there is a schedule for replacement at about 100,000 miles. Mr. Schumacher noted that the Public Works and Parks Department have indicated a need for a great deal of equipment. He noted that the Council has been doing a good job at keeping this equipment up to date. Mayor Bisel said he is proud of the present equipment and feels it speaks well for the community. Mr. Schumacher said that he would be bringing a preliminary budget figure to the next Council meeting. He will then take the next three (3) months to refine the budget. Mr. Schumacher suggested that the public hearing dates for the 1991 Budget be set for November 29, 1990 and December 12, 1990. He will confirm these dates before the next regular Council meeting. A resolution will be prepared and brought to the August 27, 1990 Council meeting setting the preliminary levy. Also a preliminary budget will be adopted. Although the preliminary levy cannot be increased once it is certified to the County, the preliminary budget can be increased or decreased. INSIDE SPORTS UPDATE Mr. Schumacher explained that Mr. Fred Dresser cancelled a meeting and is now discussing the matter with his attorney. A letter from Holmes and Graven on the matter of the Sports Center expresses two (2) opinions regarding how the City should /should not be involved with the financing. The letter indicates that Inside Sports is proposing that the City issue gross revenue bonds in the amount of $4,300,000.00 to pay for a majority of the land, sitework and construction costs. Inside Sports would raise approximately $1,500,000.00 for the purchase of equipment and to establish an escrow for working capital and contribute to the costs of construction. The City would build and own the complex and lease it to Inside Sports. The developer is also proposing that the City guarantee to pay up to $200,000.00 per year towards the cost of operation and maintenance (0 & P) of the facility. Mayor Bisel asked what is the position of the City? Can we help them? How much can we help them? The letter from Holmes and Graven also indicates that the City cannot limit its obligation to a specific amount such as $200,000.00. If the City issues gross revenue bonds, the PAGE 3