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<br />. <br /> <br />. <br /> <br />. <br /> <br />City Council Minutes <br />~overnber13,2006 <br /> <br />Page 5 <br /> <br />Council reviewed the information before them and gave direction to look at adding a fourth <br />category of a $1,000 deductible class. <br /> <br />MOVED BY COUNCILMEMBER DIETZ AND SECONDED BY <br />COUNCILMEMBER GUMPHREY TO INCREASE THE CITY <br />CONTRIBUTION FOR 2007 AT A MONTHLY COST OF $50,000 AND <br />DIRECTED STAFF TO COME UP WITH A PROPOSAL AS TO HOW THIS <br />ADDITIONAL MONEY SHOULD BE SPLIT AMONG THE GROUPS. <br />MOTION CARRIED 4-0. <br /> <br />5.5. Park Dedication Fees <br /> <br />Mr. Maertz explained that the State of :Minnesota statuteconceming park dedication fees <br />requires that there be a "rational nexus" between park dedication and the long-range plan for <br />park capital spending. In order to gauge this rational nexus, staff has reviewed Elk River's <br />lO-year parks capital improvement plan in relation to park dedication revenue estimates. <br /> <br />Projections using the current park dedication fees, with 5% increases each year, indicate that <br />there will be a shortfall of approximately $580,000 over the next ten years. Staff <br />recommends changing the park dedication fee for residential to $3,600 per dwelling unit and <br />changing commercial and industrial fees by 5%. <br /> <br />Mr. Maertz explained that staff had inquired as to what other local cities are doing with their <br />fees. Staff looked at the cities of Big Lake, Albertville, St. Michael, and Otsego. <br /> <br />Councilmember Motin stated that he does not feel that the residential fee should go up to <br />$3,600 per dwelling unit, he felt that this amount was too high and that this would put the <br />whole burden on future developers. Acting Mayor Farber agreed and feels that this amount <br />was too much. Councilmember Dietz stated that lie was fine with this amount; that we have <br />spent quite a bit for the Pinewood Golf Course with funding coming from this source; <br />that we are not out of line with our neighboring cities; and that the developers will pass this <br />cost on. <br /> <br />Acting Mayor Farber inquired as to why we are not spreading out the amount equally <br />between residential, commercial and industrial. Mr. Maertz explained that we are <br />encouraging growth in the commercial and industrial areas. <br /> <br />MOVED BY COUNCILMEMBER DIETZ AND SECONDED BY <br />COUNCILMEMBER MOTIN TO CHANGE THE RESIDENTIAL PARK <br />DEDICATION FEE FOR 2007 TO $3,300 PER DWELLING UNIT WITH AN <br />INCREASE OF 5% FOR COMMERCIAL AND INDUSTRIAL AREAS. MOTION <br />CARRIED 3-1 (Councilmember Gumphrey voted no). <br /> <br />5.6. <br /> <br />Enterprise Fund Budgets <br /> <br />Lori Johnson reviewed the operations for Westbound and Northbound Liquor Stores. <br />Liquor Operations Manager Dave Potvin stated that Northbound sales have not decreased <br />due to customer transfers to Westbound as much as originally projected, and that sales at <br />both stores have been strong. Profits of $233,300 will be transferred in 2007 to pay for <br />general fund activities and to fund debt service and city buildings. It was stated that one <br />