Minutes - 2001/11/26 - Laserfiche WebLink

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Mounds View City Council November 26, 2001 Regular Meeting Page 12 Finance Director Hansen indicated that he had attempted to split the expenses fairly among the four activities housed there, the YMCA, banquet facility, Community Education, and the daycare center. He then indicated he had presented that to Council as an alternative budget format but had cautioned that efforts to take expenses and divvy them up were based on limited understanding of the operations over there and he will need some time to review the revenues and expenses in order to be sure he has properly apportioned the expenses to the right activity. Mayor Sonterre questioned whether the $50,000 was being distributed evenly for operating costs or if one tenant is getting more than the others. Finance Director Hansen indicated that in his alternative budget format that allocated costs to four entities, the YMCA operation had the greatest shortfall of revenues versus expenses and the other three were more or less self-supporting. Mayor Sonterre asked whether the $50,000 has been adequate or if the amount has been exceeded. Finance Director Hansen indicated that the YMCA would still have a shortfall of revenues and cautioned that he is not sure that all expenses were distributed fairly and equitably. Council Member Thomas questioned whether, with the $50,000, there would be a shortfall. Finance Director Hansen indicated there would still be something of an operating shortfall in 2002 of about $25,000 but said there is sufficient fund balance to cover that for 2002. He then indicated that, unless they are able to either improve revenues or curtail expenses for 2003, the City may need to budget $75,000 instead of 50,000 for 2003. City Administrator Miller indicated that the new daycare lease increases the revenues brought in from the daycare facility and includes a provision where they pay for their portion of the utilities for their part of the building. Mr. Jahnke questioned whether part of the YMCA funding is coming from Park and Recreation funds. Mayor Sonterre answered yes. Finance Director Hansen indicated the City has a contract with the YMCA to run the City's recreation program and manage the Community Center. He then commented that most cities have to subsidize recreation with property taxes. Gene Anderson of 2948 Wooddale Drive questioned why the City needed to add police officers when the population was staying stable and had not significantly increased. He then noted that the Mermaid has numerous police calls to its location and asked whether that is taken into consideration during the licensing process.