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<br />e <br /> <br />e <br /> <br />e <br /> <br />Page 3 <br /> <br />City Council Minutes <br />November 24. 1986 <br /> <br />Commissioner Duitsman stated that he was in favor of setting up a water <br />service district to generate funds for the Water Department; an idea <br />which had been previously discussed by the City Council and Utilities <br />Commission. <br /> <br />Commissioner Kettner again stated that the payments to help payoff the <br />Water Tower Bond Issue must be dealt with on a year-by-year basis. and <br />that he is in favor of discontinuing the hydrant rental fee charge (Item <br />4.1). Commissioner Kettner stated that there has been very little damage <br />to hydrants in the past several years. Mr. Hals noted that the hydrants <br />are quite well marked now and that the last damage he could recall was in <br />1983 and was not done by a City employee. <br /> <br />Commissioner Doug Dill stated that he can't see the support for an annual <br />payment. and does not feel that was the intent. He further stated that <br />there was no money in the Water Department at that time. <br /> <br />Commissioner Duitsman agreed that he felt the intent was a one-time <br />payment of $20.000. He questioned whether or not the tax increment would <br />cover the bond repayment. <br /> <br />Mr. Beck stated that with bids <br />shopping center developing much <br />looking better than one originally <br /> <br />coming in lower than expected and the <br />faster than he had anticipated. it is <br />expected. <br /> <br />Discussion was carried on regarding the financial position of the Water <br />Department. <br /> <br />It was the concensus of the Utilities representatives to discuss at one <br />of their upcoming meetings the following plan to assist in paying for the <br />water tower project: <br /> <br />(1) <br /> <br />payment <br />amount <br /> <br />of $20.000 in 1987 to the City by the Utilities. with the <br />of future years' payments to be made as funds are available. <br /> <br />(2) Negotiate increase in the $12.000 Payment in Lieu of Taxes made by <br />the Utilities to the City (Agenda Item 4.4). <br /> <br />4.4 Payment in Lieu of Taxes <br /> <br />It was noted that this payment was set up some years back by former Mayor <br />Frank Madsen to help with the City's negative financial situation. <br /> <br />Mr. Bill Birrenkott noted that in his experience this type of payment is <br />common. and that it is merely a transfer of utility dollars back to the <br />tax payer. <br />