5.16. SR 08-05-1996 - Laserfiche WebLink

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Capital Improvement Finances Page 2 Municipal Utilities for the payment of this truck on a lease/purchase plan. In the 1996 budget, the city allocated $24,000 of this contribution for this truck purchase. This amount is again proposed to be $24,000 in 1997. The amount is projected to go to $41,000 in the years 1998-2004. Accordingly, this truck expenditure is already "in the system", but the amount is an increase from what was planned. Initially it was my goal to have this purchased a year later, and therefore have less annual debt to pay off. However, the total amount is still the same regardless if this pumper is purchased in 1997 or 1998. This expenditure reduces the city's flexibility to purchase equipment for city departments and/or special needs. There are a limited number of sources of funds for the city's contribution to the ice arena project. The city has committed $50,000 for the capital costs associated with the construction of this project. The only real undesignated reserves for this type of expenditure is the liquor store fund. Another source of funds could be the NSP contribution to the city. (A lot of these NSP funds have been spent on the Cass recreation field land purchase.) The expenditure of liquor store or NSP funds for this recreation use seems appropriate. The use of liquor store reserves for the ice arena project will reduce the available funds for the liquor enterprise fund to accomplish its short term and long term goals. Liquor Store Manager Fritz Dolejs will be in attendance at this meeting to review with the council his recommendations for municipal liquor store priorities. In brief, these recommendations for city priorities for the liquor enterprise funds are to first obtain a Westbound liquor store site before all of the best sites are gone, and secondly, to construct a new Northbound store. In the long range plans of the city, I strongly agree with the recommendations from the manager. Nonetheless, plans are still moving forward on the new Northbound store and, on Monday, Fritz will review with the council the plans that we have to date from the architects, Tushie Montgomery Associates, Inc. Regarding the liquor store funds that are available for projects, it should be noted that the city has a balance of $737,000 as of 1/1/96. Additionally, we will be adding about $150-200,000 in profits and interest revenue (after transfers to the general fund) to this total by the end of the year. Please note that an issue affecting liquor store funds is the King and Main project. The city took an internal loan from the liquor store fund for this project as this is our only real available source for internal funding. This internal loan was needed because the city or HRA could not sell bonds or get a loan for this expense, which was the early acquisition of land, due to no TIF project being