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City Manager's Recommendations Regarding City Use of the Proceeds from the Arona Project and the Amount of an HRA Tax Levy some on -time costs, and for years thereafter, the City would not have to tax residents to pay for any operating expenses. Furthermore, setting aside the $1.3 million to help acquire land, to con - struct, or to operate a Community center would substantially improve our chances of having a successful Community center bored referendum election. The $1.3 million is like the Council's earnest money shoving the Community that the Council is devoted to snaking this Project a real - ity and is planning wisely and carefully for our future. Other Possible Uses Lor the Ar ana Lend Scales Proceeds. Community/ Economic Development Fund? 1 million of the $1.3 million Arona sale proceeds could be appropriated to the Community De- velopment reserve Fund, also known as the Economic Development Fund. It is from that Fund that the City Council appropriated 1 million many years ago to purchase the Arona site. Therefore, it would be fair to replace the money previously appropriated from that Fund. If appropriated back to the Community Development Reserve Fund, the 1 million would support the operation and programs of the ommunity Development Department. presumably, the Council would want the 1 used for economic development purposes - for example, seed money for Twin Lakes. However, we have some budget issues in the Community Development Fund that require mention. For the last several years, building permit revenue has not been suffi- cient each year to fund the Community Development Department's an- nual operating costs. Last year, for example, the Cornmunity Develop- ment Department had a $300,000 operating shortfdll; that is, Depart- ment art - ment operating revenues (primarily from building permit fees) were $300,000 less than the Department's operating costs. Hence, each year for the past several gears the City Council has appro- priated money from the Community/ Economic Development Reserve Find to pay for the operating costs of the Community Development De- partment. In lean gears the Department uses this Fund to support its operations. In revenue generating gears, the Department contributes operating sur- pluses to this Fund. In 2003, the Department may shove more permit 4