05-11-1998 CC MIN - Laserfiche WebLink

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Special City Council Meeting May 11, 1998 Page 3 assessed valuations for other discount-type large buildings in Elk River. Mr. Kritzeck indicated the 89,745 sq. ft. Target store was assessed at $30.88 sq. ft. and the 164,640 sq. ft. Menards at $32.98 sq. ft. The Councilmembers discussed adjusting the assessed valuation downward by half the discrepancy amount of approximately $750,000. COUNCILMEMBER DIETZ MOVED THAT THE 1998 ASSESSED VALUE FOR LARRY HICKMAN'S PROPERTY, FURNITURE AND THINGS - 75-587-0105, BE REDUCED BY $375,000. COUNCILMEMBER THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 4-0-1. COUNCILMEMBER HOLMGREN ABSTAINED. E. Mark Joncas - 75-584-0120 (11966 215th Avenue NW) Ty Bischoff indicated Mr. Joncas's questions were addressed at the April 30, 1998 meeting. Mayor Duitsman closed the Board of Review meeting. 6. Joint Meetin.q with Utilities Commission Annual Repod- The 1997 Elk River Municipal Utilities Annual Repod was presented by Bryan Adams, General Manager. Mr. Adams noted that the sprinkling restrictions which were implemented in 1997 will become a permanent regulation during the summer months. Mr. Adams indicated the auditors have advised that the cash fund balance should be in the $1 million range, and currently is approximately $200,000. Discussion followed regarding the use of cash funds to finance projects versus issuing bonds. The Council and Utilities Commissioners also discussed the possibility of combining the water and sewer departments. Elk River Municipal Utilities Eastern Area Participation and Costs - Bryan Adams reviewed the possible financial impacts of the Eastern Area Expansion project on the water and electric departments, as outlined in his memo dated May 3, 1998. Mr. Adams indicated he felt the shortfalls could be met best through a phased in approach rather than doing the entire eastern area at once. Electric Dere.qulation Issues - Bryan Adams referred the Council to his memo regarding deregulation. The City Council, Utilities Commissioners and staff discussed the impacts this issue may have on Elk River Municipal Utilities. Utility Contribution to City - The Council indicated they were satisfied with the 3 year contribution schedule previously agreed upon. Commissioner Tralle felt the contribution should be reviewed annually due to the changes which may be forthcoming in deregulation. He suggested the contribution be based on kilowatt usage. The Council and staff expressed concern that a year-to-year basis will not allow adequate planning for budget purposes. Utility Contribution to Watermain Lateral Projects - City Engineer Terry Maurer indicated the shortfall in the western area project is due to costs for looping of the lateral watermain to service the Guardian Angels project. Terry explained looping is required to provide adequate water flow for fire protection.