Minutes - 2003/03/10 - Laserfiche WebLink

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Mounds View City Council March 10, 2003 Regular Meeting Page 13 • Finance Director Hansen indicated that Staff recommends all loans pay interest at a rate of 4% for 2003 in light of the general trend downward in interest rates Staff felt it appropriate to lower the rate charged between the City's own funds. Council Member Gunn asked if there was something the City could do to get SEH to timely apply for MSA reimbursement. Council Member Marty read a paragraph from the staff report indicating that the MSA fund suffers from the City Engineers failure to timely complete requests for reimbursement from the state. He then said he finds it totally unacceptable that the City's engineering firm has caused the City to lose money and, with the state's budget crisis, there is the potential that those funds could be unallocated and lost to the City entirely. Council Member Stigney asked if there was a way to contact SEH to get them moving forward on seeking reimbursement. Interim City Administrator Ericson indicated that Mr. Lee is working on the matter with SEH. Finance Director Hansen indicated that he and Mr. Lee have discussed the matter numerous times over the last year and cautioned that it is only a remote chance that the money could be unallocated but it is a possibility which is why he is concerned that the reimbursements happen as soon as possible. Council Member Quick indicated the City has not had issues with SEH in the past and asked Staff to contact them concerning the MSA issue and ask for an explanation and proposed plan to take care of the problem. Council Member Marty asked whether the loans from the community fund to the TIF districts can be repaid without becoming entangled in TIF regulations. Finance Director Hansen indicated it should be possible to be paid back without entangling the community fund in TIF regulations but noted that the community fund is already entangled and that is why that fund was selected as the originator of the loan. David Jahnke of 8428 Eastwood Road expressed concern that the manager of the golf course had the right to deplete this fund without approval and somehow put the golf course in debt over a million dollars. Mayor Linke indicated the ultimate responsibility was the administrations because someone was not watching the store. He then said that, in his mind, the ultimate responsibility lies with the administrator as that person approves all expenditures and Council sees those and signs off on • them.