Committee Minutes

MINUTES/FINANCE COMMITTEE
Monday, March 6, 1995 - 7:15 p.m.

Members present: Carpenter, Babinchak, McCabe.

1. Matter of Senate Bill #2419 - giving Airport Authority
ability to levy additional 6 mills.
Carpenter questioned whether the council should take a posi- tion on this bill which is currently before House of Reps., go on record in favor or recommend some amendments within the bill. He stated he asked for this to be brought to the council for con- sideration because of concern about giving an appointed un- elected body the ability to levy taxes. He also stated that com- mittee would like to have an opportunity for Mr. Selig or Mr. Mutcher to respond to why City should support bill, etc. and to have recommendation to council whether to take a position on the bill.

McCabe reported present.

Bob Selig, executive director of the airport, reported that the bill evolved from discussion as an idea with the city public service committee and city engineer re. various issues at the airport, water problem - methods on use of fund improvements. He noted that the public service committee wanted to have County involved but County not involved in transfer agreement; that City has special assessment process but Airport Authority thinks dif- ficult to make work because of number of leaseholders at the airport and makes development prohibitive; need to try to find equitable way for everyone to share in solving water problems. He stated they were asking Legislature to increase cap and restrict increase for infrastructure improvements - watermain repair and maintenance in addition to new construction. Com- mittee questioned why users at airport not paying for this, that tenants should participate, and should be part of operating costs. Mr. Selig stated that majority of money for maintenance has been through federal grant dollars (taxiways, ramps, etc.) that head tax is restricted in same manner and by law cannot impose additional head tax on users of the airport; and that their goal is to give the Airport Authority another option to consider when planning developments.

Council Member Johnson stated that Airport Authority took it upon themselves to initiate legislation, should have been before com- mittee month ago, and that City rep. on the Authority Board should have voting power.

Mark Holey stated that the Airport Authority has adopted its own Code, which is less restrictive. Mr. Selig stated that the Authority adopted same Code as the City; Mr. Swanson, city attorney, stated they don't have authority to do that.

Dick Olson spoke in support of the amendment, to support poten- tial to increase mill levy which would have to have approval of
MINUTES/FINANCE COMMITTEE
March 6, 1995 - Page 2

the city council.

Mark Holey reported that he testified at Bismarck, that Airport Authority cannot request alteration of mill levy, City or council has to make request, and Legislature tabled vote on the bill until they hear from the City on the matter.

Tom Hagness, council member, stated he would like more discussion as the bill was never discussed at the Airport Authority meetings.

Meeting adjourned.

Alice Fontaine
City Clerk