Agenda Packets - 2005/12/12 - Laserfiche WebLink

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Mounds View City Council November 28, 2005 Regular Meeting Page 7 Mayor Marty reported that the Sunday Pioneer Press had an article about the City of Blaine 1 acquiring parkland and green space through tax forfeiture and donations. Blaine is looking at 2 how to preserve and protect green space for the future. Also in the Wednesday newspaper after 3 the November elections, one of the feature articles in the Metro section of the StarTribune was 4 about the cities of Woodbury and Eden Prairie making large gains to protect and acquire 5 parkland. Woodbury has set aside about $9 million to acquire parkland and green space and 6 Eden Prairie earmarked about $4.3 million to acquire green space. Mayor Marty commented that 7 while these cities are making concerted efforts to acquire green space and parks, Mounds View 8 seems to be getting rid of it. 9 10 B. Reports of Staff 11 12 1. Budget Review 13 14 Finance Director Beer presented the staff report indicating the changes made since the last budget 15 discussion. He noted the reduction of the base levy by $307,000, which will result in a zero levy 16 increase. Finance Director Beer explained the City will need to establish a transfer-in from the 17 Levy Reduction Fund for $217,000 representing investment income on the net land proceeds. 18 The City will also need to establish a transfer-in from the Levy Reduction Fund for $141,000 for 19 to hire a temporary inspector for the Medtronic project. The City would be carrying the balance 20 of the money in the Levy Reduction Fund to pay off future expenses related to that temporary 21 inspector. 22 23 Finance Director Beer stated there are several items that established budgets for that temporary 24 inspector. He noted he increased the transfer to the Community Center Fund, which had been 25 reduced at one time, since that fund will be of primary concern. 26 27 Finance Director Beer stated there will be a savings of $25,000 over the life of the bonds for the 28 new Fire Department building. The first year there will be a savings of $219 because the City 29 realized better interest rates than originally projected. 30 31 Councilmember Stigney asked about the recommendation to establish a transfer in from the Levy 32 Reduction Fund for $141,000 for the temporary inspector. Finance Director Beer explained the 33 permit money will be put into the Levy Reduction Fund and as money is spent from the General 34 Fund, the City will need to transfer money into the General Fund to cover those expenses. The 35 transfer in will come from permit revenue. 36 37 Councilmember Stigney asked why the money is not used from the TIF administrative fund. 38 Community Development Director Ericson explained that the City is not going to realize TIF 39 administrative increment gains for several years. However, the City will be needing and 40 expending money on inspections immediately. He advised that permit revenue estimates are 41 about $380,000 in 2006 but the increment is not available until 2007 or 2008. 42 43 Councilmember Stigney stated the money transfer will not be more than what is brought in from 44 permit revenues. Finance Director Beer stated that is correct. 45