Agenda Packets - 1999/12/13 - Laserfiche WebLink

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Mounds View City Council November 22, 1999 Public Hearing Meeting Page 5 Finance Director Kessel advised that the current franchise fee of 2.5 percent of electric and natural gas charges will be directed into the General Fund to assist in offsetting some of the costs for services. He pointed out that several weeks earlier, the Council adopted an ordinance which increases the franchise fee to 4 percent, with the additional 1.5 percent going toward the Street Reconstruction Fund, and staff was additionally directed to research means to increase that percentage. He stated that prior to the Truth in Taxation Hearing on December 6, staff hopes to propose an adjustment to that amount, however, at minimum, 1.5 percent of the franchise fee will go toward the Street Reconstruction Fund. Finance Director Kessel indicated that $14,000 of the franchise fee collected on the cable service provided to residents of the City will be utilized in the 2000 Budget to continue to upgrade the Cable Television System, to provide better quality and increased programming to the citizens. Finance Director Kessel stated there are no significant changes proposed in the charges or service levels of Recycling, Street Lighting and Surface Water, with the exception of the Street Lighting rates which will probably be decreased. He added there were no proposed changes in terms of the service levels at Lakeside Park. Finance Director Kessel stated 1999 was the first complete year the YMCA managed the recreational programming at the Community Center. He advised that staff did not anticipate any changes in the General Fund contributions to the Community Center, however, there would possibly be an increase in programming. He explained that the City will continue to market the Community Center to make it self supporting, and as in the last three years, the General Fund has contributed $50,000 to assist with this goal, and this was also proposed for 2000. Finance Director Kessel stated the City's liability in terms of the Debt Service Fire Bonds is decreasing due to fewer fire-calls in Mounds View, as well as the growth in the City of Blaine and the refinancing of debt. He explained there were several years remaining to pay on those bonds, and the change in the formulas resulting in the actual amount owed is decreasing approximately $30,000 to $40,000 per year. Finance Director Kessel indicated that the City is making principal payments on the Tax Increment bonds, at approximately one million dollars a year, and the bonds will all be paid in the year 2005. He advised there is approximately 2.3 million dollars net, outstanding in Water Bonds. He pointed out that one of the bond issues was refinanced, however, the call date is not until next year, therefore, next year the City will pay off the original bonds, and continue to pay off the remaining debt until the year 2013. Finance Director Kessel stated there was $3,090,000 debt issued for the golf course in 1999. He explained that the first principal payment on this amount is due January 1,2000, and the last payment is due January 1, 2014. He explained that golf course fees will be utilized to pay all golf course expenses, and staff is currently researching a possible City loan, to be used to correct some of the construction problems at the golf course. He advised that such a loan would be repaid to the City with interest.