11-15-1999 CC - Laserfiche WebLink

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Mounds View City Council October 25, 1999 Regular Meeting Page 17 Ayes—3 Nays—(Stigney) Motion carried. D Consideration of an Interfund Advance to the Golf Course Fund. City Administrator Whiting stated at various meetings, the Council has discussed the future cash flow at the golf course, and what to do about the projected shortfalls on two occasions in the future. He indicated he and Finance Director Kessel met with Attorney Jim O'Meara, of Briggs and Morgan, who advises the City with regard to the TIF issues. He explained that Mr. O'Meara has clarified some of the State Statutes and State Auditor opinions regarding the existing TIF funds, and whether or not a portion of those funds could be utilized to assist the golf course in a loan situation. City Administrator Whiting stated the Council is somewhat in agreement that some type of loan would be appropriate for the golf course. He noted concerns expressed earlier in the meeting in terms of utilizing taxpayer funds for the golf course, and explained that this would be a means to avoid that. He advised that further discussion of this matter is required, as it is a situation that would last for a few years, and the Council should determine the means by which they would approach this option and address the concerns. Finance Director Kessel stated staff has met with the City's bond counsel and TIF attorney, who have advised there is a provision, based upon the interpretation of the State Auditor's Office, which indicates that any interest earned on TIF funds prior to July 1, 1997 are not TIF dollars, and therefore, can be taken out of the TIF fund and utilized for other purposes. He explained at the staff level, it has been discussed that the City may wish to pull out those funds and set up an Economic Development Fund, to provide that when the TIF Districts expire in approximately 2014, the City will have some tools available for economic development. He stated these funds could be used as the City sees fit. He pointed out that based upon the projections, the structure of the golf course financing is such that it is scheduled to be paid off in approximately 2013, at which time, they could shift debt payments to repay the loan back to the TIF fund. He added that another positive factor is that once the TIF Districts expire, the City would still have funds available for economic development, because at present, there are no other funds available for this purpose. City Administrator Whiting stated staff is requesting direction regarding this option. He suggested staff formulate a policy action for the Council to take, and review this at the following Work Session, and deal with it at a Council meeting, after that point. MOTION/SECOND: Quick/Coughlin. To Direct Staff to Formulate a Policy Action for the Council to Take, and to Hold Over Consideration of this Matter Until the EDA and EDC Meet to Discuss TIF at Some Length, But in the Meantime, To Authorize Staff to Come Up with Any and All Necessary Paperwork So that The Council Can Move Upon it Quickly if the Need Arises. City Administrator Whiting inquired if this should be structured towards TIF funds, or other available funds.