11-15-1999 CC - Laserfiche WebLink

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Mounds View City Council October 25, 1999 Regular Meeting Page 7 by a resolution, following the franchise fee increase at the previous Council meeting. He stated he was unable to remain at the meeting for consideration of this resolution, and inquired if this had been done. Mayor Coughlin explained that the resolution, which passed on a 4-1 vote, was to designate all of the increase in the franchise fee, and possibly more, as indicated by Council Member Marty, to the roads. He pointed out that the increase of 1.5 percent is designated fully for this purpose, and this is indicated specifically in the resolution. Mr. Jahnke inquired if this amount was to be designated totally for future road repairs. Mayor Coughlin stated this was correct, it is designated for infrastructure repair and reconstruction. City Administrator Whiting explained the resolution directed staff to draft language for the Council to consider in November, to formalize this at a level the Council is comfortable with, in terms of the ease or difficulty in changing this commitment. Mr. Jahnke stated he would like to see this language, and exactly what guarantees would be provided, as there were understandings that have not occurred. Council Member Quick asked Mr. Jahnke what understandings he was referring to. Mr. Jahnke stated one of these was in regard to the golf course, and the understanding that the taxpayer would never have to pay for this. Council Member Quick clarified this was never stated, and furthermore, it was never stated that the franchise fee would be abolished. He advised that the majority of the Council concluded they would look at eliminating the franchise fee, and would attempt to eliminate .5 percent every year, however, when it was determined this was not feasible, they eliminated .5 percent every two years. He stated no Council is tied by the actions of a previous Council. Mr. Jahnke requested the City research eliminating the golf course. He commented although it has been explained this can not be done due to the land, which was donated, a more in depth research, and discussion with the land donors in this regard might yield results, and provide that the residents are not burdened with the golf course. Mayor Coughlin stated when he first came into office he had researched this matter. He indicated that he and the Director of the golf course had made telephone calls to determine if this was a possibility, however, found that it was not. He explained this property is a conglomerate of many different properties and designations, and to attempt to do this would cost the City more money than it is worth. He advised he had seriously examined this matter at that time. Mayor Coughlin pointed out that the golf course, on one hand, is very successful and is operating at 120 percent of the estimate for a golf course of this type. He explained the problem arises in that the structure of the financing package is such that, even though the golf course is doing very well on the revenue side, it is still unable to make the interest payments on the bond. He stated it was hoped that in two to three years, the City would have the opportunity to refinance this bond, which will assist in resolving the current problems.