09-26-88 Personnel & Finance and Residential Neighborhood

Home Browse Search

Human Resources and Economic Development Committee Cont'd page 3 noted, however, a separate appropriation must be necessary to carry out this process. Council person Loretta Duda stated that she preferred the non-reverting fund with a cap of approximately $100,000. 00. She further suggested that the money be used only for exterior maintenance needs and would agree with Councilman Luecke with regard to a possible loan concept if a particular house was to be sold. She further agreed that interest could be diverted to the General Fund. She stated that she believed in her opinion that the Council would be acting in "bad faith" if such a fund would not be created. Councilman William Soderberg stated that a new Council could repeal either fund once it was established. He stated that the emphasis should be on the establishment of a proper vehicle for the monies to insure the pledges made to the community. He stated that it would be similar to a "rainy day fund" and further noted that each of the 50 homes are supposedly "maintenance free homes". He preferred the non- reverting fund with a reasonable dollar figure included. Councilman Duda noted that in the television program yesterday, Mr. Watson noted that his budget had been cut 80% and that the Council must consider that 50 homes are being purchased and to consider the costs of materials and supplies with regard to maintenance. Councilman Voorde stated that much of the concern results from statements made by Mr. Watson where he noted that he could not provide "absolute guarantees". He further stated that in his opinion that the more money that would be set aside the more likely that those same monies would be used for maintenance. Councilman Slavinskas stated that he believed the substitute bill proposed by Councilman Voorde was ambiguous in its implementation and that his bill of creating a non-reverting fund was specific and more defined. He further stated that comments made to the public has created certain expectations with regard to a safety net and therefore would prefer that no City funds be involved, however, such funds as a back-up were necessary. Jon Hunt noted that in a response to a question raised by Councilman Puzzello that the homes purchased through his department are deteriorating and costs between $20,000 to $25,000.00 to bring up to code with the emergency repairs limited to $2,500.00. He stated as a result, that comparing the two programs would be like comparing apples to oranges. He stated that perhaps under the Housing Authority Program that between 4 to 5 units may need assistance yearly. He further noted that the Housing Development Corporation has little reserve for anyone.