06/02/2008 Council Minutes - Laserfiche WebLink

Home Search

CITY COUNCIL WORK SESSION -4- June 2, 2008 APPROVED �28 Finance Director Rolek replied that in consideration of property values increasing by 3.9 percent 29 (information from county assessor) and the 3.7 levy limit, it would fall somewhat close to the 130 same tax rate. Aside from that is what the city wants to accomplish in the way of goals and also 131 what other responsibilities will arise. 132 A council member recalled that the matter of in-house vs. contracted engineering services is a 133 question that remains from last year. The mayor recalled that the council concensus seemed to 134 be to look at it again in the future. Staff should come back sooner rather than later with analysis 135 on that. Another council member pointed out that growth is slow and that should impact the 136 five-year plan, employee growth as well as revenue estimates; a conservative approach is 137 warranted. 138 The fire district expense to the city is an area that should be reviewed regularly. Administrator 139 Heitke suggested that the council could review that group's funding formula at the next work 140 session. 141 Also a special budget work session is planned for August 18 if that works for the council. 142 5. Town Center Update Finance Director Rolek updated the council (verbal only). He 143 recalled that the council had recently received an update on the tax increment situation for Town 144 Center from Paul Steinman. Since that time, the taxes and specials were not paid by the bank 145 that foreclosed on the mortgage. Staff expects to meet with the owner to find out what the plans 146 are since it was understood that they would be paying the taxes. The outstanding assessment is 1,47 about $1,060,000 (representing one and a half years); altogether the amount due is in the area of 148 $1,500,000. There is an interest payment due on the public improvement special assessment and 149 the fund earmarked for that revenue is about $28,000 short. 150 When asked by the council about a worst case scenario, Finance Director Rolek suggested that if 151 the property were to go tax forfeit, the taxes as well as assessment could be lost. The city is 152 legally obligated to pay the debt service of $534,000 annually for the next thirteen years. 153 Contingency planning is appropriate and important at some point. There will be considerations 154 during the upcoming budget process. 155 A council member suggested that if the city needs to be proactive in this situation rather than 156 defensive, that shouldn't be ignored. It shouldn't come to the point of the city getting pushed to 157 do things with the property that are not appropriate and were never planned. 158 Finance Director Rolek reiterated that information gathering is a key element at this point. He 159 will be setting up a meeting (with Attorney Steve Bubul as city's counsel) as soon as possible. 160 The mayor suggested that the council receive updated information as soon as it's available. 161 6. R.O.W Management Ordinance - Public Services Director DeGardner noted that the 162 council discussed the possibility of a city right-of-way ordinance at the last work session. Based 163 on that discussion, he is presenting a proposed ordinance, drafted by Kennedy & Graven, for .1164 consideration. It includes a permit identification and requirement process, permit fees and 65 restoration issues. It requires mapping data and as -built drawing upon completion of the work