HomeMy WebLinkAbout2009-03-04 CC WS - ApprovedCity Counci12009-03-04 6:00 p.m.
Minutes of Work Session
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Present were Mayor Capra, Council members Jeff Paar, Tom Lee, and Ben Fehrenbacher.
Also present were City Attorney Kurt Glaser and Deb Barns reporter for the Citizen.
1) Budget Administrator Larson presented a budget estimate showing cuts in
Market Value Homestead Credit Aid and other revenue reductions for 2009.
Revenue losses of about $83,000 are expected. He reviewed the areas that
savings in costs are expected totaling about $116,000. Savings will result from
the temporary vacancy in the Finance Director position and shifting inspector
expenses from the General Fund to the 2009 Street Project. Staff has implemented
a policy of holding off on most discretionary expenses and training. Only training
required for state licensing will be allowed this year.
Council reviewed a draft budget for 2010. The estimated budget would have
about a 2.5% decrease in overall expenses in the General Fund. The requirement
to make certain debt levies and the levy for the 2009 Street Project will result in a
levy increase of about 14%. Making up for the Market Value Homestead Credit
Aid will result in an increase of about 3% in the levy. Making up for those items
and in addition adjusting for other revenue losses would result in a total overall
levy increase of 18.9%. The estimates are very preliminary.
2) Downtown DevelopmentBeard Group Update. Mr. Ron Mehl of Beard Group
was present to share their company's outlook on the Centerville Downtown
Redevelopment. They have seen a steady erosion of interest in doing the
townhome portion of the project. He indicated that last summer, they had
expressions of interest from Centex to do the development, but they were offering
50% less for the lot sites as compared to the prior year. Now Beard is unable to
get any developer interested in doing anything. Many of the home developers
have substantially reduced their staff so it is even difficult to talk to anyone.
Mehl indicated that the Block 8 portion of the development is probably bankable,
but they will need to have an anchor tenant for the commercial space before they
can move forward. Residential space would probably need to be rental, as banks
don't seem interested in financing units for sale, unless at least 75% are presold
without contingencies.
Mehl stated that Beard has received a commitment of $150,000 in Home Funds
for the Block 7 rental project. They plan to reapply for the Tax Credit funding in
June. They are optimistic that they will be successful this time, which would
mean breaking ground in the spring of 2010. When they reapply, they will be
asking the Council to extend the purchase agreement on the City property in
Block 7.
The meeting was adjourned at approximately 9:30 p.m.
Dallas Larson, Administrator