03/30/1998 Council Minutes - Laserfiche WebLink

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MINUTES MARCH 30, 1998 • John felt tax compression was "scary" and the City could end up with no increase in • • revenue. Mary calculated the tax impact on a $150,000 home and noted that tax compression would have a major impact. Randy said that the Legislature should prepare examples on how this will impact municipalities. Mary handed out Schedule "M" and explained that the auditors have been in and the 1997 audit will be completed by the end of the week. The General Fund balance increased substantially so that the Council should consider how this increase should be designed to protect the funds. She suggested that the funds be designated by the end of April. Mary will get the department heads together and prepare a list of options for the Council to select. She noted that $70,000.00 of the funds have already been designated for new computers for the finance department. John said that it is his opinion that expenses should be paid out of the current year budget and did not like the idea of spending last years funds for something purchased this year. Jerry Shannon explained that the 1997 budget is out of balance. There is a concern that the state legislature will look to undesignated fund balances as additional revenue for the state. Therefore, it is important to designate these fund balances. He noted that once the 1997 books are closed the funds cannot be designated. Kim asked why there is such a big fund balance. Mary explained that some departments did not spend all of their budget. She noted that in many cases time ran out before the budget did. Kim asked Dave Pecchia to sit down with management staff and determine why this happened. Mary asked each Council Member how they would designate the fund balance. John said that if there is an opportunity, land for an athletic complex would be at the top of his list. Chris said he felt the same way, Kim said she would support the Y. Mary will bring a list of recommendations to the next work session. Mary presented Schedule "J", Area and Unit Fund. Projections through the year 2003. She felt that her estimates on this schedule were very conservative. Kim asked that Mary also prepare a TIF schedule for Council to review as well as fund balances for all other funds. She said that the Council should review this list at a future work session. Brian said that he would prepare a list of TIF projections including the terms of the districts. He felt that TIF is needed as an incentive in the market place. Chris said that he did not want to use TIF anymore. Mary referred to the first seven (7) projects listed on Schedule "A" and noted that these projects will be financed by cash. The balance of the 1998 projects will be funded by bonds. Jerry said it was important to note that two (2) different types of bonds will be used. He noted that the Council last October authorized a $3,000,000 Lease Revenue bond (Schedule "K") but it was delayed until the land exchange was finalized. He PAGE 5