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Regular City Council Meeting Monday,January 28, 2019 Page 14 course correction the City will have to make with the street replacement program down the road will probably need a greater infusion of cash than if the money is taken from somewhere else. He noted the funds in the street replacement program stands out and is the fund that has the most available reserves but there are tradeoffs. Councilmember Etten asked how much interest the City is making on the street replacement fund. Mr. Miller stated the fund is not making a lot in interest, approximately two per- cent, $160,000 annually. If the money was taken from that fund, the City would lose$40,000 of interest annually. Councilmember Etten stated the Gaughan Companies have a two-year window to look at developing the Fairview site as a part of this agreement and he wondered when that timeframe ends. Mr. Miller thought the City still had a year from April. Mr. Trudgeon had hoped the Gaughan Companies would have been at the EDA meeting tonight to talk about some of their plans and requests to assist but the Gaughan Companies could not get all of the information together in time. He suspected in February, the City will see a proposal from them. Councilmember Willmus stated in regard to the license center, the $120,000 the City added was leasehold savings for current year and the lease that was in place was going to increase by three percent per year. He asked if Mr. Miller was ac- counting for that number going forward as increasing three percent per year. Mr. Miller'assumed that would be the case moving forward but it is always under the assumption the City would have the monies to do that. Councilmember Willmus stated he was not interested in going out and issuing bonds. The only scenario where he would have been is if the City was looking at revenue bonds and he was not sure the City was going there. He thought the City was looking to fund it internally and certainly looking to utilize some excess rev- enues from the license center to help offset the payback of where funds are bor- rowed from. He noted the Fairview site will be sold at some point and utilizing the dollars as well. Long term, he did not go into this acquiring this center for a license center and for him, it was a much bigger picture with regard to acquisition of the land adjacent to City Hall. The Council has had some discussion on what the City needs for space and storage, etc., coming up in the future and at some point, he saw a very strong Public Works role over there and that all enters into this conversation at some point as well.