Agenda Packets - 2003/03/24 - Laserfiche WebLink

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Mounds View City Council March 10, 2003 Regular Meeting Page 13 that requirement and allowed the cash value to drop below the amount called for and, when Staff 1 became aware of that, a loan was required to bring the account back into compliance. 2 3 Council Member Stigney clarified that the total loans are $1,017,887.00. 4 5 Finance Director Hansen indicated that language was added to the Resolution that additional 6 loans may be made as needed to cover operating deficits in 2003 to meet the state law 7 requirement that Council approve, in advance, any loans made to the TIF district. 8 9 Finance Director Hansen indicated that Staff recommends all loans pay interest at a rate of 4% 10 for 2003 in light of the general trend downward in interest rates Staff felt it appropriate to lower 11 the rate charged between the City’s own funds. 12 13 Council Member Gunn asked if there was something the City could do to get SEH to timely 14 apply for MSA reimbursement. 15 16 Council Member Marty read a paragraph from the staff report indicating that the MSA fund 17 suffers from the City Engineers failure to timely complete requests for reimbursement from the 18 state. He then said he finds it totally unacceptable that the City’s engineering firm has caused the 19 City to lose money and, with the state’s budget crisis, there is the potential that those funds could 20 be unallocated and lost to the City entirely. 21 22 Council Member Stigney asked if there was a way to contact SEH to get them moving forward 23 on seeking reimbursement. 24 25 Interim City Administrator Ericson indicated that Mr. Lee is working on the matter with SEH. 26 27 Finance Director Hansen indicated that he and Mr. Lee have discussed the matter numerous 28 times over the last year and cautioned that it is only a remote chance that the money could be 29 unallocated but it is a possibility which is why he is concerned that the reimbursements happen 30 as soon as possible. 31 32 Council Member Quick indicated the City has not had issues with SEH in the past and asked 33 Staff to contact them concerning the MSA issue and ask for an explanation and proposed plan to 34 take care of the problem. 35 36 Council Member Marty asked whether the loans from the community fund to the TIF districts 37 can be repaid without becoming entangled in TIF regulations. 38 39 Finance Director Hansen indicated it should be possible to be paid back without entangling the 40 community fund in TIF regulations but noted that the community fund is already entangled and 41 that is why that fund was selected as the originator of the loan. 42 43