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<br />I <br /> <br />Page 2 <br /> <br />City Council Minutes <br />November 24, 1986 <br /> <br />e <br /> <br />On April 1, 1985 at a regular City Council meeting, the City Council <br />approved a tax increment plan to finance the new water tower. This was <br />not an official joint meeting with the Municipal Utilities, but the <br />Utilities were represented by Edson Stansfield, Utilities Superintendent, <br />and Councilmember Duitsman, who served on the Utilities Commission. <br />Terry Maurer and Phil Hals also were in attendance at the meeting and the <br />City's fiscal consultant, Springsted, Inc. was represented by Ron <br />Langness. The City Council reviewed the proposed increment district, <br />parcel by parcel to try to determine what they could expect by way of <br />increments to finance the water tower. It was determined that there <br />could be substantial deficiencies in the cash flow generated by the <br />increments. The City Council found that they would need some assurances <br />that the water tower project could be paid for before they could give <br />authorization to proceed. Mr. Langness provided handouts at the meeting <br />showing cash flow projections, noting the expected shortfall and <br />projections with both a $17,500 annual contribution and a $25,000 annual <br />contribution by the Municipal Utilities. <br /> <br />Mr. Beck stated that he had made a notation on his copy of the cash flow <br />sheets showing the acknowledgement by the utilities to make a $20,000 <br />annual committment. Based on this assumption, the City Council went <br />ahead with the project. Mr. Beck further stated that this meeting took <br />place before the bonds were issued. <br /> <br />e <br /> <br />Commissioner Duitsman stated that he does not feel he agreed to an annual <br />payment, but rather a one-time payment of $20.000. Commissioner Duitsman <br />noted that at that time the Water Department was operating with a <br />deficit. Mr. Beck stated that despite that fact, he felt the Utilities <br />also could see the need for the water tower. <br /> <br />Commissioner <br />water tower. <br />estimates. <br /> <br />Kettner <br />Mr. <br /> <br />asked how close the cost projections were for the <br />Beck stated that the project had come in under <br /> <br />Commissioner Kettner stated that the Utility Department is in a position <br />to make the 1987 payment. but felt that he could not make a commitment <br />for future years and that they would have to deal with the payment on a <br />year- by-year basis. Commissioner Kettner stated that at this time, he <br />doesn't know where they will get future funds, as they will be <br />encountering some significant expenditures, such as the water main <br />replacement in the Main Street project and possibly chlorination of the <br />City's water system. He noted that the only means of increasing the <br />Water Department revenues is through increased water usage, and that the <br />rates cannot be raised, as they are high already. He also noted that the <br />increased development in the City would help the water usage. <br /> <br />e <br /> <br />Mr. Bill <br />what the <br />Drinking <br />River. <br /> <br />Birrenkott stated that the Water Department must wait to see <br />Federal government does in regards to modifications in the Clean <br />Water Act, and to know what financial impact it will have on Elk <br />