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input up until Friday. Mr. Glickert would like to talk to the residents and look at the options <br />before he would get back to the City Manager. <br /> <br />Mr. Crow asked if the environmental audit be conducted in house at no additional cost. Mr. <br />Walker stated the City would be able to do that in-house in about a week. Mr. Crow asked if <br />the CDBG grant is all or nothing and Mr. Walker noted it was. Mr. Crow stated the City <br />Manager mentioned the dire fiscal situation of the City. He said he has not seen an update <br />on the City’s dire fiscal situation any time recently. With the cutting the City has done, he <br />was under the impression that we were at a balanced budget or very close for this year with <br />a very healthy reserve. Mr. Crow asked if the City Manager had additional information for <br />the current dire fiscal situation, he would like to know it. Mr. Crow asked if this was going to <br />be an agenda item and was told that it would not be. He asked if action would be taken in <br />the interim. <br /> <br />Mayor Welsch asked Council to let Mr. Walker know their thoughts by the end of the week. <br /> <br />Mr. Sharpe asked Mr. Burns to come to the podium. He asked Mr. Burns where he was in <br />the process of purchasing a new home. Mr. Burns noted the home they were looking at was <br />still on the market. Mr. Sharpe asked him if he was under any time limit. Mr. Burns said his <br />previous contracts have all expired. Mrs. Burns said the contract they have with the seller, <br />the seller can walk away if the home owner gets another buyer. <br /> <br />Mr. Crow understood that there would not be a vote tonight as nothing was posted, but his <br />question was: is there going to be a meeting for Council to vote or is this not taking Council <br />action, just input. <br /> <br />Mayor Welsch understood the administration was asking for input. She said this is an <br />administrative decision and will not be coming back to Council. Mr. Walker said he was just <br />looking for direction from Council, <br /> <br />Mr. Crow first said the Council understands the hardships that so many of the citizens have <br />gone through, not only the flood, the loss of life and everything else since that point in time. <br />He felt it would be a very large step for the City Manager to take on his own; to make a <br />decision as to spend a million dollars or get a grant for a million dollars. Mayor Welsch <br />noted that Council did approve the CDBG grant application at its last meeting. She said that <br />last Friday, the City discovered that to get those funds, the City had to do an environmental <br />assessment. Staff can do this assessment as soon as the City receives word on whether or <br />not the application has been approved. <br /> <br />Mr. Walker wanted to make it very clear that there would be a delay if he moves forward on <br />the grant. But the City will continue with the purchase of the Wilson Ave properties. The <br />reason staff is recommending option two is twofold: one the City would be able to help <br />more of the residents for future buyouts, or use a portion of the funds to address the City’s <br />deficit situation it will have for next year. In terms of Mr. Crow’s statement about the City’s <br />financial situation, the projections that have been put forth in front of Council even before his <br />arrival was that if nothing was done, the City would be in a two million dollar deficit next year <br />and the deficit will just continue to grow. He said we have done some reductions this year <br />and will be doing some reorganization as part of the new budget process but the City by no <br />means is flush with cash. There is an opportunity here, by accessing an additional million <br />dollars, to assist more of the residents. Mr. Walker stated he understands the Burns’ <br /> <br /> 8 <br /> <br />