Agenda Packets - 2000/02/14 - Laserfiche WebLink

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Mounds View City Council March 22, 1999 Regular Meeting Page 33 Council Member Marty noted an item in the Staff Report that indicates “Children’s Home Society will provide accounting information that demonstrates the fiscal problems they are currently experiencing.” He stated Council Member Stigney had indicated that the facility had held a fundraiser, and recorded record fund-raising rates. He requested Council Member Stigney speak to this. Council Member Stigney stated he had obtained information from television, which indicated that the Children’s Home Society had held a record fund-raising event at the Community Center, however, the manner in which the proceeds of this fund-raiser were apportioned to the different districts, he was uncertain. City Administrator Whiting stated staff had spoken with the Children’s Home Society shortly after Christmas with regard to the fund-raiser, having placed himself in the mindset they were facing. He stated they had made a good effort at raising additional funds, however, prior to raising those funds, they had been discussing this current proposal. He stated the Children’s Home Society indicates that they feel they are making progress, however, are not yet where they would like to be. He pointed out that with the number of children at the facility, they are at a break even point, where it is still viable for them to stay in business, particularly if they can get through 1999, however, they are not where they would like to be. City Administrator Whiting stated there are currently 80 children at the facility, which has a capacity of 96 or 98. He advised that in determining their budget, they were most likely counting on this figure, while that fund raiser was taking place, therefore, their interest would not to necessarily be to change the figure, and then attempt to re-do their budget. City Administrator noted the Children’s Home Society has been very good about communicating their situation with staff, and staff should be able to obtain the solid information that is required in the agreement. Council Member Marty indicated the rent for this facility was forgiven in 1999. He inquired if this was done in exchange for the playground equipment. City Administrator Whiting stated this was correct. He indicated this equipment would also be held as a liability for the term of the contract, and if, for some reason, the Children’s Home Society were to leave the premises early, they would owe that amount. He stated although they are only three months into the year, the initial understanding with them was that this amount would be approximately $7,000 to $15,000, depending upon the number of children at the facility. Council Member Marty inquired if they would owe this amount, in addition to the playground equipment. City Administrator Whiting stated this was correct. He explained that if they were able to continue through the term of the agreement, there is a condition that the playground equipment would go back to them. Assistant to the City Administrator Schmidt stated this was correct. She pointed out that if they default on the contract, the rent that was forgiven in 1999 would have to be repaid, regardless of the year this occurs within that five-year period.