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Mayor Mary withdrew her motion and the public hearing was tabled to August 23rd. That Thursday evening Bud Hiivala said, "We're getting nowhere because the city hasn't agreed to the financing. I need some help. I'm in limbo. I cannot get a permit from the watershed district. I'm wondering where the financing is."
Asked Mayor Mary, "When did we agree that we would finance this improve-ment project?"
"The staff made that decision," said Bud.
Administrator Steve Sarvi pointed out that Boyd Bailey, the city's project man-ager, had assumed that Statue #429 assessment procedure would continue from past experience with the Hiivala property and because of the "100% petition" of property owners.
Boyd Bailey tried to explain that the city would be lending the money to the developer, "but we do get the money back, with interest." If all the lots didn't sell, however, he admitted the city would be required to foreclose and do a number of other somersaults.
Said Councilmember Paulsen, "We have a long history of working with land-owners and being a friendly partner, but extension of credit by the city does not come at a good time for us. We've just lost $194,000 in HACA."
Replied Mr. Hiivala, "Isn't it normal to work with staff? I understand there are conflict of interest questions because I'm involved in the city."
In fact, it is normal that city staff make recommendations and not policy.
"You are a valuable member of this community," stated Jim Paulsen, "but you made a choice to deal with staff. With something like this, you could have picked up the phone and said, 'What do you think?' This would put the city in the development business. The project gets paid for by the sale of lots! I can't see myself voting to do this. This is not a good thing for us. We don't have $300,000 in excess capacity for this. We're not in the foreclosure and development business."
"I feel the same way," said Council-member Jerry Bohn. "We'd be providing funding to provide housing. That would put us in a difficult situation in the future. What's to keep Centex and other develop-ers from doing the same thing?"
It was pointed out that the city finances sewer and water projects because such projects are utilities; they are necessary services made available by government for the health, safety, and welfare of the citizens. On the other hand, the sale of lots for homes is a source of profit to the developer.
TALKING ABOUT THE CITY BUDGET
"AND SELF ENFORCED PRUDENCE"
Councilmembers and staff continue to hold workshops in preparation for the Year 2002 budget. The budget is not yet proposed nor completed. It is not certified to Carver County. It is in progress. That progress includes many comments, opinions, and facts.
The following comments, in and out of order, come from the 5 o'clock and 9 o'clock workshops of August 23rd as council and staff work to get down to a $1.5 to $1.6 million levy.
Jerry Bohn: "I'd like to know where it's coming from before I know where it's going," regarding revenues versus expenditures.
"We've added 100 homes since last year, so that's $300,000 more income.
"Why can't we make the ice arena a separate enterprise fund, in order to find out how much we'd really be subsidizing if subsidizing at all.
"People don't watch the revenue side if an arena produces income; they watch how much it costs.
"Why do we need to add a Public Works person? We've got a new mower that takes the place of two people. We haven't increased our miles of road.
"I'm worried about generating enough revenue to pay expenses. The water enterprise fund was in the hole last year."
Jim Paulsen: "Is it fair to know how much money we've got before we determine how much we'll spend?
"We're going to be up to $800,000 in money for staffing … "In staffing, what mileposts do we have? … "Hiring summer help is cheaper than buying a big rig … "The Parks and Rec Department has become 15% of the budget. It's equipment or people. We can't do both. … "There's $431 million of assessed value in the city today. … "The Fire Department is about 15 to 17% of the budget. When they put an item in the budget it becomes memorialized. The $75,000 we give them every year for capital expenditure is not going to pay for it … "In listening to the insurance com-pany, the Fire Department is getting advice from self-serving interests. Chaska has a hook and ladder. Can't we use theirs? … "Self enforced prudence will come back and help us in the end. … "If we don't start putting these new assets into play - Notermann Woods and Diethelm Park and the new fields - we're going to get fired!"
Mayor Mary: "It's not that we couldn't get any fire insurance, but that it would be at a higher rate.
"We're not doing a lot of three-story buildings here in Victoria. Why have the public, through taxes, pay for the insurance on three and four-story buildings? Those buildings could pay it themselves.
"I want staff to do a presentation as to how to get Diethelm Park done and paid for, maybe bonding for it."
Jylan Johnson (City Finance Director): "It would be safe to say we could levy what we levied last year plus what we're losing in HACA.
"Utilities are a necessity, an ice arena is not. It makes sense for utilities to be in an enterprise fund.
"Truth in Taxation hearings are not mandatory this year."
Steve Sarvi (City Administrator): "City staff is billing a lot of its time back to the developers, and there is also less consultant expense.
"We've got the equipment in the shed, but not the people to operate it."
Mary Saarion (Parks and Rec Director): "City parks increased by 40 acres. We've doubled. Mowing takes a lot of travel and time to all the little city pieces here and there. In addition, we have boulevards to mow. Every time you add a program to Parks & Rec, there is more field time and field preparation time. The demand for service will continually increase. You have options. We can keep the grass longer and the fields less well maintained. That is council choice.
"We could be doing five days a week of park projects, but the mowing time gets in the way, but it's part of maintenance." Click here for more.
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