04/19/1999 Council Minutes - Laserfiche WebLink

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COUNCIL FINANCE WORK SESSION APRIL 19,1999 Staff answered questions from the Council about Pages 1 and 2 of the packet. One question involved the Area and Unit Fund financing land acquisition for the athletic complex. Previously, staff was authorized to negotiate a land purchase with the property owner on the southeast corner of Birch Street and Centerville. If the City did indeed buy the land, the cost of the land purchase would be funded by the Area and Unit Fund. The City would place a referendum on the November, 2000 election ballot. If the referendum failed, the property would still be prime property and the City would be able to sell the land and recover the costs or determine some other method of financing the acquisition. Pages 6-8 Tax Increment Financing (TIF) A letter dated 10/7/98 from Ehlers & Associates, Inc. titled Tax Increment Financing Overview, Mitigating the LGA/HACA Penalty was included in the packet and marked Page 6. The letter indicated that the TIF penalty for 1999 was expected to be $157,000. Staff has contacted Ehler's letting them kn ha that Mr. Sulander is no longer employed by the City and that the City will be relying on: them to prepare the TIF report for this year. Staff also will seek theirassistance in detertnining how the City should fashion its local contributions and how the Ci#y might find ways to reduce the penalty. The expected penalty for the year 2000 is $225,001 s of yeti this penalty is not funded. The Council will consider using a portion ofthe 1998 General Fund Excess Balance to fund the penalty. Staff stressed the importance o meeting to speak to spec a repsentative from Ehler's at the next finance It was noted that becaa sethe C incurred the TIF penalties, the City lost its Local Government id (L FUTURE Pit. POWELL CTS AND PROJECTED FUNDING SOURCES, JOHN Page 9 Engineering Capital Improvement Program Summary, 1999 - 2003 A summary of capital improvement projects that may occur during the period beginning in 1999 through 2003 was presented. A color coded map indicated the location of the projects. There will be no street reconstruction projects in 1999, however a feasibility study is planned to more accurately identify projects for the next three (3) years. An updated presentation more accurately reflecting the current status of the 1999 projects in process will be prepared for Council review. Mr. Powell explained that each proposed project is tested to determine if the project generates adequate Area and Unit Funds to pay the cost of extending services to the PAGE 2 • •