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