11-14-1994 ERMU MIN JOINT - Laserfiche WebLink

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Elk River City Council Special Meeting Page 2 November 14, 1994 III enterprise Tralle questioned whether the Utilities was supposed to be an enterprise fund. He stated that one third of the people in Elk River do not pay into the electric utility fund and did not feel it would be fair to use the Utility fund as an enterprise fund. Commissioner Zabee stated that he was not opposed to giving money to the City of Elk River, but was unsure as to how much should be given. Discussion was held regarding the amount of funds annually available in the Elk River Utilities electrical fund. The Commissioners indicated that available funds are planned to be used for the growth and expansion of the electrical utility. Mayor Duitsman indicated that the City of Elk River is requesting the Elk River Utilities to consider assistance in funding of the front end loader. He further indicated that he is not in favor of the Utilities doing any more than they are presently doing for the City of Elk River. Commissioner Tra11e indicated that he felt it would be best for the City to request funds on an as needed basis as opposed to a percentage of the gross sales. Commissioner Simpson concurred with Commissioner Tralle in that it may be detrimental for the City to request a percentage of the Utilities gross sales. Commissioner Simpson suggested that the City consider a three year time limit if the City wishes to proceed in this fashion. He indicated that after three years the City can re-evaluate the percentage from the Utilities. Ill COUNCILMEMBER HOLMGREN MOVED TO REQUEST 3 PERCENT OF THE GROSS REVENUE FROM THE ELK RIVER UTILITIES ANNUALLY BE PAID TO THE CITY FOR A THREE YEAR PERIOD STARTING IN 1995 WITH THE UNDERSTANDING THAT THIS 3 PERCENT OF GROSS REVENUE IS IN EXCHANGE ONLY FOR THE$72,000 CASH AMOUNT THAT HAS BEEN PROVIDED THE PAST SEVEN YEARS AND THAT ALL THE OTHER TYPICAL CONTRIBUTIONS THAT THE CITY OBTAINS FROM THE UTILITIES WILL CONTINUE. COUNCILMEMBER DIETZ SECONDED THE MOTION. Mayor Duitsman indicated that the request for 3 percent from the Utilities may work to balance the City's 1995 budget, but it may not work for the City's future growth needs. Councilmember Scheel indicated she would rather see the City request funds for special issues and projects. Councilmember Holmgren noted that the motion made does not mean that the City will not be able to request funds from the Utilities for other special uses. THE MOTION CARRIED 3-2. Councilmember Scheel and Mayor Duitsman opposed. Meetings - It was the consensus of the City Council and Elk River Utilities that a joint meeting be held between them three times per year; in March, July, and November. 0