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HomeMy WebLinkAboutCity Council Minutes 04-04-1994 SpecialMINUTES COUNCIL STUDY SESSION APRIL 4, 1994 A study session of the Plymouth City Council was called to order by Mayor Tierney at 6:00 p.m. in the Council Conference Room of the City Center, 3400 Plymouth Boulevard, on April 4, 1994. PRESENT: Mayor Tierney, Councilmembers Anderson, Edson, Granath, Helliwell, Lymangood, and Morrison. ABSENT: None STAFF PRESENT: City Manager Johnson, Assistant City Manager Lueckert, Community Development Director Hurlburt, Public Works Director Moore, Park Director Blank, Public Safety Director Gerdes, Finance Director Hahn, and City Clerk Rauenhorst PARK PORTION OF CAPITAL EVIPROVEMENT PROGRAM (CIP) City Manager Johnson stated that the purpose of this meeting is to consider the funding of the park portion of the proposed Capital Improvement Program (CIP). He stated the Council has traditionally adopted a CIP based on the reasonably expected projects in the next few years. The need for each project is determined at the time when each project proceeds according to the CIP schedule. Assistant Manager Lueckert reviewed the staff report and described financial information on the park portion of the CIP. She described the use of park dedication funds in financing the proposed park projects, including a proposed borrowing from the Community Improvement Fund which would be repaid over time. She estimated future projections of the funds based on the projects proposed in the CIP, as well as estimated operating costs for the proposed projects. Manager Johnson suggested that if the Council clearly knows at this time they do not favor a project, it should be deleted from the CIP. However, if the Council believes there is a reasonable chance the project will proceed, it should be left in the CIP for further consideration. The Council will decide whether to proceed with each individual project in the CIP at its scheduled time. Assistant Manager Lueckert added that the projects contained in the first two years of the CIP are more certain than those proposed in the later years. Minutes - Study Session April 4, 1994 Page 2 Councilmember Lymangood stated concerns that some proposed projects can move forward and gain momentum. By the time the project gets to the City Council for consideration and final approval, it is difficult to discontinue the project. In response to Council questions, Park Director Blank explained that 70 percent of park dedication funds are designated to the community playfields and trail fund, and 30 percent go to the neighborhood parks fund. Park dedication funds are generated from fees on development in the community. The City has not historically used tax revenues to purchase or construct parks. Tax revenues are used for operating costs. He stated that the use of tax increment funds from a previous development are proposed as the funding source of the street relocation within the West Medicine Lake Park project. The City has not used tax increment financing funds for parks before, but it is proposed in this case for the street improvements. Public Works Director Moore stated the tax increment funds would be used to relocate the street which must be done in order to redevelop the park. Manager Johnson suggested that the Council address two major financial issues: 1) the proposed use of the Community Improvement Fund, particularly to loan funds to the park dedication fund; and 2) the large increase in operating costs in 1996 and 1997 associated with development of a new playfield and West Medicine Lake Park in subsequent years. Councilmember Anderson stated the operational costs are not the only concern with the proposed development of the ninth playfield and West Medicine Lake Park in subsequent years. He noted the estimated cost of the initial construction of the new playfield is $100,000. He stated it is difficult for the Council to try to discuss these issues without having full information on the funding. He is concerned that the Council has not been provided all the information needed in order to make informed decisions about which projects should proceed. Park Director Blank stated the Council can delay development of parks, but acquisition needs to be done as soon as possible or the land will no longer be available at a reasonable cost. Manager Johnson stated that borrowing $450,000 from the Community Improvement Fund in 1994 may be a good investment for the City because land prices are currently escalating much faster than the interest earned through investment. In addition, if the Council decides that not all the acquired land is needed in fixture years, the land will have value and can be sold. Minutes - Study Session April 4, 1994 Page 3 Councilmember Edson stated that he wants the Council to give serious consideration to the use of the Community Improvement Fund, and particularly whether money should be loaned from the fund. He stated that the Financial Task Force established criteria for use of this fund, and the Charter includes provisions relating to its use. The concept of loan and payback from the fund was discussed by the Financial Task Force, and the Task Force supported the idea that if the Council spent money from the fund on a project, it would not spend additional money from the fund until it is restored to a certain level. He stated the Council needs to consider whether there are alternatives to the Community Improvement Fund loaning money. Councilmember Anderson stated that staff provides a clear statement of need in staff reports on other issues. He is concerned that there is no proposed prioritization of the park projects in the proposed CIP, and he does not support moving ahead with things like condemning homes when a park has not yet been approved for development. Manager Johnson stated staff can add a description of each project and the need. He suggested that the Council concentrate attention on the proposed land acquisition for the ninth playfield. Councilmember Edson stated he is concerned about having two major parks opening in consecutive years because of the significant resulting increase in operating costs. The City Council reviewed each park project contained in the CIP for 1994 and 1995. Councilmembers provided comments to staff on each project which will be incorporated in the proposed CIP. The meeting was adjourned at 6:51 p.m. WClerk