By MaryHelen Swanson

Getting the North Branch Police Department up and out of the basement of City Hall is a goal of the city council.

No one on the council is disputing the fact that a new building is needed and the site for one is being planned near the new fire hall.

The issue at hand Monday night as the full council met for a regular meeting, was funding.

City staff did not provide an estimate of the cost of a new building, but, at the request of the council, did provide some options for finding the funding within the city coffers.

Finance director David Stutelberg offered the following options:

• The PIR fund, a collection fund for any funds that were unspent for capital projects. However, he recommended not using this fund unless absolutely necessary. Current balance is $175,000 .

• The Library/Community Center fund, established for the purpose of setting aside funds for a future community center. Current balance is $33,660, with additional revenues of $156,000 for 2007.

• The Park Improvement fund, established for future park improvements. Current balance is $154,000, with $44,000 to be added from 2007 budget.

• The Equipment Revolving fund, established for the purpose of eliminating the city's dependence on equipment certificates. Current undesignated fund balance is $30,000, an additional $80,000 will be transferred from the 2006 equipment certificate due to unspent funds.

• The sale of the old library building. A quick estimate suggests an amount near $250,000 could be garnered from the sale.

• General Obligation bonds, in the form of capital improvement bonds which would not require a referendum. In the past, when the state imposed levy limits, these types of bonds were outside of the levy limits.

Councilor Amy Oehlers did not favor any of the options, saying this is not the way to fund a police station.

Councilor Kathy Blomquist suggested using the community center funds as she feels it will be seven years or more before it would be considered and she noted, there is no plan for a community center yet.

She also advocated using the money from the sale of the old library building.

Councilor Larry Erickson concurred on the library sale funds but said he'd have to look at the other options.

Mayor Gloria Karsky didn't think the city should use the community center funds, but those that would be levied for this fund in the future.

Councilor Theresa Furman was not comfortable in using the community center funds either, present or future. She said a community center was important to the people of North Branch - there's nothing in this city other than schools, she said.

At the end of the discussion, Oehlers moved and Erickson seconded a motion to call for a public hearing on the issuance of GO bonds. It will be held May 29. The vote was 4-1 with Blomquist opposed.

The council did move forward on a contract with an architect for the police station, at $170,000, with a note that if the project doesn't go through, the city would only pay the amount that had been spent to that point.

Earlier in the evening the council heard from Heartland Express director Jackie Forner on the plans for changes that will occur this June. There will be continuous rides to and from Cambridge during the day, as well as regular routes from North Branch, serving as a hub, to Rush City, Wyoming and the Lakes area. It is expected that the new system will draw significantly more readers which will aid in financing the floundering transportation system. The North Branch bus stop is not yet pick ed out. Residents of senior apartment buildings will still have transportation available to the hub bus stop.

Mayor Karsky said she'd like to see the bus stop coordinated with the downtown revitalization plan.

In other business, the council:

• Approved a transient license for Boy Scout Troop 411 to sell concessions at soccer games, waiving the $75 fee because as Councilor Erickson said, the scouts do a lot for the community.

• On a 4-1 vote (Blomquist opposed) agreed to remove Police Chief Steve Forner from probation.

• Unanimously approved the rezoning, preliminary and final plat for ESSBY Business Park.

• On a 3-2 vote, approved an EDA Rewards program that would offer $3,000 to anyone bringing a business to the industrial park. Furman and Oehlers were opposed. Stutelberg noted that it will be a tool for the new EDA director to use. The item came before the council at the suggestion of Councilor Erickson who said many cities use this form of incentive. Owners of companies and consultants will not be eligible for the reward.

• Upon learning that the city did not get a $1.5 million federal grant to extend utilities along Flink and connect to 400th St., the council agreed to visit with Cong. Oberstar early in May to see what he can do to help the process. Stutelberg said the project is critical, not only for the ESSBY project, but for other development in the city.

• Moved to reapply for the Safe Route to School grant which the city did not get either.

• Adopted a resolution to assist Boy Scout Drew Short in financing his Eagle Scout project of building a shelter at Rodger Johnson park, if he needs some financial assistance. Short said he would need about $3,000 for the project but was seeking funding from several sources. Private donations would also be accepted, call City Hall if you would like to help.

• Decided to hold a goal-setting session on June 2.

• Approved the purchase of a tandem axle dump plow truck, a tractor and a skid steer and going out for bids for this equipment. Estimated cost of all three is $255,272.

• Agreed to use green energy power (wind generated) at city hall, cost will be about $1,200 more per year than current costs. Erickson was opposed.

• Added Wachovia to the list of city depositories.