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AP fl 0 VI: 1 <br /> IL Li <br /> Mounds View City Council Page 13 <br /> • Regular Meeting October 24, 1994 <br /> • Sewer (Waste Water) Utility - increase of $1/quarter <br /> (2 . 3%) proposed for 1995 <br /> • Golf Course - proposed to subsidize operation for <br /> several years through transfer of franchise fees and <br /> loans <br /> Brager commented on the City's use of Tax Increment Financing <br /> (TIF) to develop the Mounds View Business Park and Sysco <br /> Development. Tax increments received from these projects <br /> account for TIF project funds which are used to pay off the <br /> bonds. Additional monies over and above that can be used to <br /> support economic development activity. Brager reviewed types <br /> of activity or housing improvement programs that would <br /> qualify. <br /> With regard to the Golf Course, Brager reviewed expenses <br /> involved with the development and projected net income <br /> estimated by the consultant's study. It was noted the City <br /> will subsidize the operation for several years via a transfer <br /> from the gas and electric franchise fee. Also, a loan from <br /> the water fund was made for the first two years of operation <br /> 4111 until the golf course achieves maximum play and green fees. <br /> This loan was made at 6% interest rate and is treated the same <br /> as. a business loan with payback over a 20 year period. <br /> Orduno commented on the golf course subsidy and noted that the <br /> consultant's calculations were based on worse case scenarios <br /> with the practice range opening mid-June and the course in <br /> July. Weather permitting, it is expected that the course will <br /> open the spring of 1995. She emphasized that extensive <br /> research was conducted on the golf course before the Council <br /> decided to move forward and the consultants were directed to <br /> look at it from the conservative side. It was noted that a <br /> task force had been created of business and resident <br /> representatives, three of which were anti-golf course. <br /> However, after all of the data was presented, they changed <br /> their mind and supported construction of the golf course. <br /> With regard to a comment made by a resident concerning the <br /> Brooklyn Park golf course, Orduno explained that it was owned <br /> by a private entity and operating in the "red" when the City <br /> took it over. She further explained that the Mounds View golf <br /> course has three par 4 and one par 5 and is very close to an <br /> executive course with 32 holes. <br /> Brager continued with a detailed review of the following: <br /> 4110 1995 Budgeted Expenditures - All Funds <br /> 1995 Budgeted Expenditures - Debt Service Funds <br />