Committee Minutes

MINUTES/FINANCE COMMITTEE
Tuesday, September 26, 1995 - 3:45

Members present: McCabe, Babinchak, Geller.
Member McCabe chaired meeting, starting at approx. 4:05 p.m.

1. Matter of Grand Forks AFB retention billing for services
rendered by G. Schlossberg (Kutak Rock).
Mayor Polovitz stated that council had been forewarned approx. 6 months ago that cost for Base retention would come in over the $100,000 budgeted; that this billing is in the amount of $54,300.57; and stated that the Base is still here (though not the missiles), savings of $200Million for city and surrounding area. He stated that if they hadn't gone to these lengths, Base wouldn't be here; that Minot spent tremendous amount of money through economic development.

Don Larson, chairman of Chamber Committee on Military Affairs, stated he has worked with City since 1992 when first alerted to possibility of base closure; that in 1993 City budgeted $25,000, $100,000 in 1994; that the business community has contributed $179,000 and monies still coming in, however, all monies spent with exception of $3,000; had agreement with Mayor's Office that City cover consultant costs. He reported that Chamber funds were used to pay Letnes firm $48/hr. for overhead, covered travel by committee, dealt with trips all over the country; that they talked to committee chairs and they were aware that they were over amount City allocated; that they did what was necessary to save Base. He stated est. economic impact of Base $200Million+ on city and region even without missiles which will be leaving over next several years - no significant change until 1998-1999.

Geller present.

The committee asked whether anyone scrutinized billing to make sure accurate. Mr. Gustafson, Chamber of Commerce, stated this was best accounting and everything legit and above board. Mr. Larson reported that he had contacted Mr. Schlossberg and this is final billing. Mr. Gustafson also stated they didn't know what to expect and didn't know funding; that this is lot of money but compared to economic impact of Base, public and private funds well invested; scrutinized best they could.

Saroj Jerath, Dep.City Auditor, reported that Mr. Schmisek had recommended funds be transferred from Loan and Stabilization Fund to cover this billing. There was some discussion whether these funds would have to be repaid to the Loan and Stabilization Fund; and Ms. Jerath stated they can't do as part of the general revenues, and noted that this was not only loan fund but was also stabilization fund.

Mr. Larson reported that the base closure process done; would take act of Congress to bring back and don't need funds for 1997. He noted that BRAC process completed, consultants told that

MINUTES/FINANCE COMMITTEE
September 26, 1995 - Page 2

committee will meet one more time for review but have no authority to make any changes.

Moved by Babinchak and Geller to approve payment in the amount of $54,300.57 from the Loan and Stabilization Fund. Motion carried.

2. Matter of report on tax levies and per capita comparisons
with other cities.
Ms. Jerath stated they are requesting this item be held as they need to do more research. Held for 2 weeks.

3. Temporary and overtime statement for August, 1995.
The committee reviewed the statement. Moved by Babinchak and Geller to approve. Motion carried. (comm. only)

4. Matter of policy for private vehicle reimbursement.
Committee asked what status was on matter of establishing rate on private vehicle reimbursement. Mel Carsen, city assessor, reported that he has scheduled meeting for this week to meet with people affected, to set proposed policy and bring back to committee.

Mr. Geller stated they don't want to drop issue of resource allocation policy (who gets vehicles, est. use by individuals and departments), etc.

5. Matter of financing through TIF/tax exemption.
Mr. Carsen reported there have been number of requests for financing of small projects through tax increment financing, which not very feasible because of costs, effect on bond rating, etc. and question raised if want to encourage as tool for economic development. Matter will be discussed at later meeting.

Meeting adjourned at 4:30 p.m.

Alice Fontaine
City Clerk

Dated: 9/27/95.