11/19/2002 Meeting Minutes - Laserfiche WebLink

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Council Minutes of I1/19/21i02 be addressed through legislation. He will provide Council with a copy of the list and the administration's responses. Stefan Powell, 23840 Ambour, said he was under the impression that city tax dollars weren't supposed to be used at Springvale. If tax dollars weren't supposed to be used there, why was he, Ed Lewis, Gregg Peters and other Service Department employees used there? Would that money that was spent on them to be there be reimbursed back to the General Fund? Finance Director Copfer answered, as far as the enterprise fund, it is intended to act as a business-type activity. As such, it is intended to be self-supporting. When Council agreed to purchase Springvale in 1994, even though it's not documented clearly, their intent was that no General Fund tax dollars would be used to support Springvale or the WWTP. There is also a legal requirement for all funds of the city to not be in a deficit at the end of the year. In July, Council acted upon the administration's recommendation to not receive the appropriated $63,000 of administrative fees that the General Fund gets for doing many of the services for Springvale. The actual figure is approximately $45,000 because the golf course did not open when expected. Also, Council set up the ability to transfer $100,000 from the General Fund to Springvale at the end of the year so that fund does not go into a deficit. By law, you cannot knowingly run a fund into a deficit. Council is doing the fiscally responsible thing in those areas. Is it the law that Springvale can't be supported by tax dollars? No. An enterprise fund is intended to be self-supporting but that doesn't preclude monies being transferred from other areas to that fund. Regarding the question about wages of employees working on the lake at Springvale and the storm sewer project, a previous Service Director had made an arrangement with Council that, because there are some storm sewer benefits to that area, the General Fund would provide the labor for the gabion ditch work and Springvale Capital Improvement Fund would provide the other portion of it. It was anticipated Springvale's share would be about $100,000 of the water problem, and the General Fund would pay the wages of the people who were working in that ditch/lake. Mrs. Kesler said she remembered it differently. She attended the meeting when borrowing the $2.5 million for the Springvale renovation was discussed. She questioned for 2 1/2 hours, and she remembers that Service Director. That's not her recollection. Her recollection is that we would need to use city employees to assist in portions of the renovation. That their time would be documented, that there would charge backs was an understanding. She asked Mrs. Copfer for documentation if it is other than that. Mrs. Copfer said there is none as the meetings were not taped. Mrs. Kesler said Mr. Bohlmann talked about city employees being used at Springvale, and it was never her understanding that city employees would be working over there and not be charged back to Springvale because it was an issue pointed out to everyone that we would not use city tax dollars to support that facility. When talking about it not being a legal matter that tax dollars not be sent, it is an issue of public trust. It certainly is an issue of promises that have been made. In fact, when the promises are made on campaign literature, it may be a legal matter. The Mayor told everyone that tax dollars were not being used at Springvale. According to the gentleman who spoke, the money was being used there. She is concerned about that. She asked Mrs. Copfer to give information about the bond retirement interest fund and the debt of Springvale and how that has been handled and how much it amounts to. Mrs. Copfer said in March, when appropriations were fast discussed, it was determined that 16 M -~~ i