Committee Minutes

MINUTES/FINANCE COMMITTEE
Tuesday, February 13, 1996 - 3:45 p.m.

Members present: Carpenter, Babinchak.

1. Application for abatement of taxes:
a) Annette Hauser, 723 Oak Street
This application involves a single family home which was damaged by fire on April 19, 1995 and the applicant is requesting that the house be considered a total loss for the last 70% of the year (from April 19, 1995), or a $32,000 adjustment. A recom- mendation from the city assessor in communication to the com- mittee dated February 6, 1996 that the abatement law does allow for an adjustment of the value of a property due to a fire and that the application be approved as submitted, was presented. Moved by Babinchak and Carpenter that the application be approved as submitted, and the value of the property be reduced from $64,100 to $32,100. Motion carried.

2. Appointment of budget framework committee.
Mr. Schmisek reported that it was that time of year when need to appoint budget framework committee to start working on budget resolution for 1997 budget process; that in the past the recom- mendation has been the four committee chairs or their designee. Moved by Carpenter and Babinchak to establish the budget framework committee as the four committee chairs or their designees. Motion carried.

3. Matter of tax levies and per capita comparisons with other
cities.
Mr. Schmisek reported this item first submitted in September, and suggested to get off the table to either receive and file, or direct staff to pursue further. He stated that various charts on demographics of the four larger cities, valuation information, tax levies, comparisons of expenses for selected departments, had been provided to the committee, and question is if committee wishes them to pursue further in light of variances in those departments, would have to find out what services performed, etc. compared to what we do. Mr. Schmisek stated that one of the difficult things is the comparison of information, and in communication had stated that and suggested one of the things they may wish to pursue is to determine what our own service levels should be and determine performance indicators for those, and that may be something the budget framework committee may be looking at and researching. After review of information by the committee, it was moved by Carpenter and Babinchak to receive and file and to provide information to the budget framework committee to use in their determination as to recommendations for 1997. Motion carried.

4. Matter of request by Grand Forks Housing Authority for funds
to purchase Nodak REA building.
John O'Leary, exec. director of Office of Urban Development, presented proposal from the Grand Forks Housing Authority to
MINUTES/FINANCE COMMITTEE
February 13, 1996 - Page 2

purchase the Nodak Electric Building at 1405 1st Avenue North
for $475,000. In the audience were George Berg, representing owner of the building, NoDak Electric Utility Cooperative; Louise Potter, Greenberg Real Estate; Arvin Kvasager, chairman, Housing Authority; and Joel Manske, director of Housing Authority.

Mr. O'Leary reported that the Office of Urban Development has been looking for office space for some time, that they are out of
office space now and between now and by end of 1998 will be adding 10 more staff people in the Housing Authority. In ad- dition, Housing Authority need shop for maintenance of equipment, minor carpentry work, and to store inventory (plumbing, wiring, etc.) He stated that the proposal describes office needs; and that the proposal enjoys support of the mayor, Housing Authority Board, etc.

He noted that the space they will vacate in the police building would be used by the health department, who also needs space; and a letter of support from Don Shields is included in the proposal.
It was noted that health department costs wouldn't increase because of additional space.

He stated they are requesting $400,000 from the City, with the balance from the Grand Forks Housing Auth. administrative fund, Housing Auth. has enough money to do minor remodeling, etc., and they are not asking for on-going support for the building. He stated that most of their monies from federal sources, and with coming changes in HUD, will mean even larger budget for them. He stated Housing Auth. would own building, administrate and manage building. If building sold, it would be because Housing Auth. went out of business, and assets would revert back to the City.

John Schmisek, city auditor, reported there is sufficient money in the City Building Fund to purchase, but he would prefer to see funding out of Loan & Stabilization Fund, which will have approx. $2.5 million in the fund; his recommendation would be funding from the Loan & Stabilization Fund.

Mayor Polovitz and Arvin Kvasager, chairman of Housing Authority, spoke in favor the proposal; that building suits needs of the Housing Authority, and meets needs of both departments for next 10-15 years.

Pam Engel, health department, stated they have space problem and support the proposal.

Chairman Carpenter stated he was reluctant for City to acquire another building, but case has been made; was hoping to hold off on space problem for urban development and health department until events center built and had another facility that might be available.
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February 13, 1996 - Page 3

Moved by Carpenter and Babinchak to authorize purchase of the property in the amount of $475,000, with payment of $400,000 from the Loan and Stabilization Fund, and balance of $75,000 to be paid by the Housing Authority. Motion carried.

Chairman Carpenter stated that with purchase of this property, assumption is that health department will occupy space to be vacated by the urban development office.

5. Budget amendments:
a) year end amendment adding amounts to virtually every budget to increase the 1996 budget for prior year encumbrances that were carried over.
b) budget amendment to increase budget for 1995 health insurance payback.
c) budget amendment to increase budget for 1995 for FICA and medicare deductions related to the health insurance payback.
Moved by Babinchak and Carpenter to approve budget amendments. Motion carried.

6. Appointment of committee member to the Architectural/
Engineering Review Committee for the Cirrus facility.
Mr. Schmisek presented request from the Office of Urban Development for the appointment of a member to the Architectural/
Engineering Review Committee, which is composed of Dave Beach (Urban Development Comm.), George Berg, and a member of the finance committee. Interviews will be held Friday, February 16 from approx. 8:30 a.m. to 11:00 a.m. Chairman Carpenter appointed Mr. Geller, with Ms. Babinchak as alternate.

7. Clarification of businesses having potential obligation for
one-quarter percent tax increase.
Mr. Schmisek reported that Mr. Swanson had received com- munication from the Office of State Tax Commission asking for clarification of what businesses have potential obligation for the one-quarter percent tax increase; and that if grocery stores, supermarkets, meat markets, bakery stores, convenience stores, and similar establishments are to be included, they would only be included if they engage in the sale of prepared foods or drinks for immediate consumption on or near their premises. Moved by Babinchak and Carpenter to approve listing of businesses subject to the one-quarter percent sales tax as outlined in the letter from Gary Anderson, State Tax Commissioner's Office. Motion carried.

Meeting adjourned at 4:20 p.m.

Alice Fontaine
City Clerk

Dated: 02/13/96