05/05/2008 Council Minutes - Laserfiche WebLink

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• CITY COUNCIL WORK SESSION May 5, 2008 APPROVED 46 probable scenario, includes all the same assumptions as scenario one except it utilizes the 47 maximum term of 26 years for collection of tax increment. 48 49 Finance Director Rolek explained that the project does have some built in funding mechanisms 50 in case of short fall including a tax levy and MSA funding or borrowing. Regarding the 51 interfund loans, the funds were committed to the project and if they can be collected at the end, 52 that is a bonus. 53 54 Finance Director Rolek also noted that the hotel project is currently in default with the bank 55 having taken control of the property. Although the taxes are delinquent, the bank is indicating 56 they will make those payments. Without those payments, the city will have to look at an 57 alternative approach by year 2009, perhaps an interfund loan or tax levy. 58 59 The council discussed when decisions would need to be made. A levy decision would be 60 necessary during yearly budget discussion; the tax increment situation will become clear as the 61 due dates pass and a decision to maximize the term of the district just needs to be made before 62 the end of the 17 year period. The council requested that Mr. Rolek keep them updated; there 63 will be more discussion at next month's council work session. 64 65 Rain Sensor Incentives - Public Services Director DeGardner explained that staff has identified 66 a program through Toro that would allow the city to purchase commercial grade rain sensors at a •67 discounted cost (he recommends that the city purchase 200). He reviewed the three options 68 being presented for a rain sensor retro fit program: sensors made available to residents at the 69 city's cost of $50 and no installation included; sensors and installation made available to 70 residents for $50; and sensors and installation made available to residents at no cost. He 71 confirmed that the sensor equipment involved is commercial grade to prevent future operation 72 complaints, etc. Communication would be included with the water rate campaign (if authorized) 73 along with all the regular devices (website, water bills, newsletter, etc.). 74 The council considered the significance of the cost impact to the Water Fund of option two 75 ($7,500) or option 3 ($17,500). The Water Fund is an enterprise fund so there is no tax impact 76 and the fund can absorb this and that should be included in any communication. Since it is 77 supported by the Water Fund, the program should not apply to residents with private wells. 78 There was some concern that demand will outpace the number of units especially if they are 79 given away free. 80 In response to a question about why staff would want to be involved in the scheduling, Mr. 81 DeGardner noted that he would like to remain in control of citizen contact. Staff noted that the 82 plan is to make these available to those who don't have a rain sensor but there is a question about 83 how to handle a replacement issue. 84 The council directed staff to proceed with option 3. 85 86 Blue Heron Days/Lino Lakes Ambassadors Funding — Finance Director Rolek recalled that in •87 2007 the council authorized funding for Blue Heron Days in the form of one-time hospital 88 district funds that had become available. At the current time, Blue Heron Days doesn't actually