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<br />Elk River City Council Special Meeting <br />November 14, 1994 <br /> <br />Page 2 <br /> <br />e <br /> <br />Commissioner Tralle questioned whether the Utilities was supposed to be an <br />enterprise fund. He stated that one third of the people in Elk River do not pay into <br />the electric utility fund and did not feel it would be fair to use the Utility fund as an <br />enterprise fund. <br /> <br />Commissioner Zabeestated that he was not opposed to giving money to the City <br />of Elk River. but was unsure as to how much should be given. <br /> <br />Discussion was held regarding the amount of funds annually available in the Elk <br />River Utilities electrical fund. The Commissioners indicated that available funds <br />are planned to be used for the growth and expansion of the electrical utility. <br /> <br />Mayor Duitsman indicated that the City of Elk River is requesting the Elk River <br />Utilities to consider assistance in funding of the front end loader. He further <br />indicated that he is not in favor of the Utilities doing any more than they are <br />presently doing for the City of Elk River. <br /> <br />Commissioner Tralle indicated that he felt it would be best for the City to request <br />funds on an as needed basis as opposed to a percentage of the gross sales. <br /> <br />Commissioner Simpson concurred with Commissioner Tralle in that it may be <br />detrimental for the City to request a percentage of the Utilities gross sales. <br />Commissioner Simpson suggested that the City consider a three year time limit if <br />the City wishes to proceed in this fashion. He indicated that after three years the <br />City can re-evaluate the percentage from the Utilities. <br /> <br />e <br /> <br />COUNCILMEMBER HOLMGREN MOVED TO REQUEST 3 PERCENT OF THE GROSS <br />REVENUE FROM THE ELK RIVER UTILITIES ANNUALLY BE PAID TO THE CITY FOR A THREE <br />YEAR PERIOD STARTING IN 1995 WITH THE UNDERSTANDING THAT THIS 3 PERCENT OF <br />GROSS REVENUE IS IN EXCHANGE ONLY FOR THE $72,000 CASH AMOUNT THAT HAS <br />BEEN PROVIDED THE PAST SEVEN YEARS AND THAT ALL THE OTHER TYPICAL <br />CONTRIBUTIONS THAT THE CITY OBTAINS FROM THE UTILITIES WILL CONTINUE. <br />COUNCILMEMBER DIETZ SeCONDED THE MOTION. <br /> <br />Mayor Duitsman indicated that the request for 3 percent from the Utilities may <br />work to balance the City's 1995 budget. but it may not work for the City's future <br />growth needs. <br /> <br />Council member Scheel indicated she would rather see the City request funds for <br />special issues and projects. <br /> <br />Councilmember Holmgren noted that the motion made does not mean that the <br />City will not be able to request funds from the Utilities for other special uses. <br /> <br />THE MOTION CARRIED 3-2. Councilmember Scheel and Mayor Duitsman <br />opposed. <br /> <br />MeetinQs - It was the consensus of the City Council and Elk River Utilities that a <br />joint meeting be held between them three times per year; in March. July. and <br />November. <br /> <br />e <br />