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June 24,2009 <br /> Council Member Nielsen brought forth that we have executed an <br /> agreement with Village Theater regarding this project and we would <br /> breech that contract if we did not go forward with the funding. <br /> Mayor Stephenson clarified that last week the city council authorized to go <br /> to the November ballot for the paramedic program. Them is general <br /> concern regarding this due to the current economy.We have been able <br /> to operate for nine years on the last vote.He assured that there am no <br /> service arts planned but a we do not proceed with a ballot measure in <br /> November a funding mechanism will have to be found,i.e.interfund loan <br /> etc.,to cover the shortfall until such time that the citizens authorize the <br /> reestablishment of$.50.He further clarified that in the contract that was <br /> executed with Village Theater It calls out that the Plaza Improvements are <br /> part of that agreement.The$1.9 million you are being asked to authorize <br /> commits the city to the full expenditure which includes the improvements <br /> of the Plaza.There will be a$4 million commitment for the theater end <br /> the park. <br /> Council Member Hatloe spoke in support of the project but likened it to a <br /> want list and with the economic downturn the money shouldn't be spent. <br /> Buzz Rodland requested that action on this agenda item be postponed for <br /> a week. <br /> Council Member Olson brought forth that if the levy fails the city still has e <br /> substantial amount of money in its reserves.There are funds available for <br /> short term needs. <br /> CAA Debra Bryant stated that we have a fund balance policy that <br /> designates 20%of annual revenues into fund balance.$28,000,000.00.If <br /> we do not pass this levy there will be a$2,000,000 per year deficit.All <br /> dollars coming into the city are invested. We have chosen to invest in <br /> ourselves in a number of areas,i.e.the golf fund. That fund balance <br /> money is put Into different functions and we re paying interest to <br /> ourselves. We shouldn't have the image that we have a$28,000,000 <br /> checking account.Intedund loans have to be paid back. <br /> 185 <br />