2003_0818_packet - Laserfiche WebLink

Home

City Manager's Recommendations Regarding City Use of the Proceeds from the Arona Project and the Amount of an HRA Tax Levy some on -tine 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 bond referendum election. The $1.3 million is like the council's earnest money showing the Community that the Council is devoted to making this Project a real - ity and is planning wisely and carefully for our future. D. Other Possible Uses or the Arona Land Sales Proceeds, Community/ Economic Development Find? $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. Wherefore, it would he 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 Community Development Department. presumably, the council would want the $1 used for economic development purposes — for example, seed money for Tin Fakes. However, we have some budget issues in the Community Development Find 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. Fast year, for example, the ommunity Develop- ment Department had a $300,000 operating shortfall; that is, Depart - 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 years the City council has appro- priated money from the Community/ Economic Development Reserve Fund to pay for the operating costs of the Community Development De- partment. In lean years the Department uses this Fund to support its operations. In revenue generating years, the Department contributes operating sur- pluses to this Find. In 2003, the Department may shove more permit 4