05/06/1998 Council Minutes - Laserfiche WebLink

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COUNCIL WORK SESSION MAY 6, 1998 It was decided to make a formal statement on the matter to the Quad Press and to direct all telephone calls to Chief Pecchia. EXCESS FUND BALANCE Ms. Vaske explained that when the audit is completed each year, a fund balance is determined. If the City realizes a positive fund balance (more receipts than expenditures) for any year, a resolution must prepared outlining how this fund balance is to be used. Now that the 1997 audit has been completed, the City is showing a positive fund balance for 1997. Ms. Vaske is in the process of preparing a resolution that will designate the use of the 1997 General Fund balance. Randy Schumacher's severance package was not anticipated in the 1998 General Fund budget. Ms. Vaske suggested that his severance package be financed thsoie of the 1997 excess funds. Ms. Vaske will bring a detailed recommendation for the severance package to the next work session. UPDATE SAC, PETE KLUEGEL r. Schumacher's Sewer Availability Charges (SAC) wee charged bythe Metropolitan Council on all new home building permits issued to since" approximately 1971. A northern suburb challenged Metropolitan Counei s pr edures''including the collection of SAC in areas that will not get sanitary sewer scrvice'fhr a long time. The northern suburb won their court suit. The re tt was th etropolitan Council offered to reimburse SAC charges collected on new Ouse permit 'fin areas where sanitary sewer was not available and not expected tea •. ailabe until sometime in the future. The City prepared a list of the permits affected by the court ruling and requested a refund of the SAC from Metropolitan Council. The SAC was refunded to the City but never returned to the property owners. The funds were kept in a separate account and allowed to accumulate interest. Problems occurred when some of those homes began connecting to sanitary sewer services and Metropolitan Council requested payment of the SAC. The originally SAC payment sitting in the City account was considerably less than the current SAC charges. Who was going to pay the difference? The Council decided that SAC for each of the homes connecting to sanitary sewer would be paid from the City SAC account. In addition, staff was directed to send letters to the homeowners not connected to sanitary sewer offering to refund the SAC with interest back to the date the City received the SAC refund. Staff was also directed to try and get Metropolitan Council to take back the SAC payments from property owners who do not PAGE 4