06-22-1987 CC MIN - Laserfiche WebLink

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Page 3 City Council Minutes June 22. 1987 e The City debt limit is currently at a little over $3.000.000. The City has approximately $1.000.000 falling under the debt limit. Hobbit Hills Subdivision was again discussed and it was suggested to look at refinancing a bond to reduce the assessments which are causing a deficit balance in the bond fund. The city can cancel the current assessment and have the property reassessed. but how is this made equitable when some properties are paid and some are not? A question was also raised regarding whether or not reassessment would prevent tax forfeiture. COUNCILMEMBER TRALLE MOVED THAT A $375.000 IMPROVEMENT BOND BE INVESTIGATED BY A BOND CONSULTANT TO SEE WHAT IS THE BEST ACTION TO BE TAKEN. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4- O. There is $228.000 in the Sewer Fund which pays for repairs and maintenance. Mr. Groen stated that he feels that as the size of the plant continues to grow and age. so should the amount of cash on reserve. Groen pointed out a dramatic improvement from 1985 to 1986 in the water utilities operation. In 1985. profit was $19.537. and in 1986 it grew to $72.821. The question was asked. "Would it be to the City's advantage to have the e Utilities audit done by the same firm as the City?" Councilmember Tralle questioned the cost of the audit and why the Utilities audit was so much more than the City's audit. The Utilities is established under State Statutes. It is a split entity but it ultimately reports to the Council. Municipal liquor stores were briefly discussed and it was stated that they can sometimes be detrimental to cities because of such things as management. on/off sales and insurance. Municipal liquor stores need sales volume and Elk River has both the volume as well as the location. Councilmember Holmgren questioned how a person running a profit liquor operation is rewarded as manager for a good year. Klaers addressed this question by stating that department heads are hired to do a good job. Councilmember Schuldt suggested looking at the improvements in the liquor store facility as a "reward" the same way the City views the equipment of other departments. Pat Klaers stated that some transferring of funds needed to be done and the following motions were made: e cOUNCILMEMBER SCHULDT MOVED TO APPROVE RESOLUTION 87-29 AUTHORING TRANSFER OF FUNDS FROM THE SEWAGE DISPOSAL FUND TO THE SEWAGE DISPOSAL CAPITAL RESERVE FUND. COUNCILMEMBER DOBEL SECONDED THE MOTION. THE MOTION CARRIED 5-0.