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HomeMy WebLinkAbout4 - McDonald Parcel - Parks & Open Space System I I AGENDA NUMBER: PREPARED BY: SUBJECT : DATE: INTRODUCTION: DISCUSSION: HERITAGE 1891 COMMUNITY 1991 18J:5rJ)( 2Q91 4 BILL MANGAN, DIRECTOR OF PARKS AND RECREATION DISCUSSION ON ADDING THE BILL McDONALD PARCEL TO THE PARKS AND OPEN SPACE SYSTEM NOVEMBER 18, 1991 This item is a continuation of the August 19th Council meetin~ in which the City Council adopted Resolut1on 91-36 and requested the Parks Advisory Committee to conduct a Public Hearing on the acquisition of the Bill McDonald parcel utilizing the grant process. The PAC met in a public hearing forum to receive public input on August 29th. The PAC then discussed the issue at their meeting in October and have prepared a recommendation to the City Council. The reason this item came before the Council was due to the fact that Mr. Bill McDonald sent a letter of intent to the City stating conditions of the sale of this property for $245,000 of which he would make a donation of $100,000. After staff discussion, it was decided to research the availability of grant funding for the property. Staff discovered that there was some State funding available for grant applications for FY 1992 and the deadline for making application was September 1st. The basis for this discussion centers on whether the City should include this parcel in its' open space system. The Parks Advisory Committee did conduct a Public Hearing on August 29th (see attached minutes). In addition, the PAC met on October 14, 1991, and passed the following motion: TO RECOMMEND TO THE PRIOR LAKE CITY COUNCIL THAT THE BILL McDONALD PARCEL BECOME PART OF THE CITY PARK SYSTEM FOR THREE REASONS: 1. THE GEOGRAPHIC LOCATION OF THE PARCEL; 2. THE HISTORICAL SIGNIFICANCE OF THE PARCEL; 3. THE AVAILABILITY OF A GIFT FROM WILLIAM McDONALD TO BE APPLIED TOWARDS THE PURCHASE. 4629 Dakota 51. 5.E., Prior Lake, Minnesota 55372 / Ph. (612) 447-4230 / Fax (612) 447-4245 BUDGET IMPACT: THE COMMITTEE RECOGNIZES THAT THE ONLY WAY THIS PARCEL COULD BE ACQUIRED IS IF GRANT FUNDING BECOMES AVAILABLE FOR ACQUISITION. IF GRANT FUNDING IS NOT AVAILABLE FOR ACQUISITION, FURTHER RESEARCH WILL NEED TO BE DONE TO SEE WHAT OPTIONS ARE AVAILABLE. (Motion by smith, seconded by Abrams, passed unanimously) . A clear direction on this parcel needs to be established prior to receiving information relevant to the status of the grant application. If this parcel is integral to the open space system, then the parcel should stand on its' own merits. The PAC recommends that the parcel become part of the park system due to geographic location, historical significance, and the offer of the owner. Without the letter of intent from Mr. McDonald offering a substantial gift, the City would be in no position to even consider this property. McDonald's letter of intent, frankly, presents us with a unique opportunity to consider. For additional history and information on this item, please refer to the memorandum dated August 20th from Bill Mangan to the PAC; a letter dated September 4th from Dave Unmacht to the PAC, Mayor and Council and various citizens; (please refer to page 2 of the September 4 letter for a brief explanation of why this is on the agenda prior to the grant information being received); the capital Improvements Program identifying the project (page 30); and the minutes from the Public Hearing of August 29th. In addition, the draft of the revised Comprehensive Plan for the year 2010 includes this parcel for City ownership. However, because this is in draft form only, the material is not included for use in this discussion. The budget impact at this time has not been determined. That amount would hinge on 1) successful grant funding and 2) amount of the grant. The grant application was for 50% of the appraised value which was determined to be $290,000. with that amount, coupled with Mr. McDonald's gift of $100,000, the acquisition could be completed. However, without any grant funds, which would be the worst case scenario, it would cost the City $145,000 via a Contract for Deed. Please refer to the following example: ALTERNATIVES: RECOMMENDATION: ACTION REQUIRED: 1. WORST CASE $100,000 Gift 145,000 CD $245,000 Price $145,000 + Interest Total City Cost If the level of grant funding is successful, continue negotiations with Bill McDonald to have this parcel become part of our parks and open space system. BEST $145,000 100,000 $245,000 -0- CASE Grant Gift Price City cost 2. If the level of grant funding is not successful, refer the item back to the Parks Advisory Committee for further review of options and recommendation. Do not continue to negotiate McDonald parcel. Staff feels that Alternatives #1 and #2, are appropriate at this time, #1) if grant funding is successful proceed with the negotiations for the McDonald parcel to include it in the City Park System. If grant funding is not successful, then Alternative #2, referring the item back to the PAC for further review and recommendation, would be in order. Both Alternatives #1 and #2 represent a position that the McDonald property should become part of our parks and open space system. 3. for the Based on your actions on November 18, staff may bring the decision to acquire the property back to the Agenda when all grant and financial details are available for Council to review and approve. If you decide not to pursue this property, we then would notify Mr. McDonald and the grant staff of your decision. A motion to accept the recommendation of the Parks Advisory Committee to continue negotiations for the Bill McDonald parcel to add to our City Park System. If the grant application is not successful, refer the item back to the PAC for further review and recommendation. Minutes of the Prior Lake City Council August 19, 1991 4. Discussed setting up a date for council, Economic Development Committee and Planning Commission Business/Office Park Feasibility study worksho~. Council concurred that the workshop should be held 1n conjunction with the Budget Workshop. Council concurred that the date should be October 9 from 5:00 to 9:00 p.m. Resolution to Apply For Grant Funds. City Manager Unmacht briefly submitted background information on the McDonald Property (adjacent to C.R. 21 and Quincy Street) and the offer from McDonald as to how it relates to staff research on this issue. Parks and Recreation Director Mangan stated that he had just learned of a chance for the City of Prior Lake to appl~ for grant fundin~ towards the creation of a public park 1n the event the C1ty should opt to purchase the McDonald Property. The deadline for submitting the grant ap~lication is September 1, thus the reason for submitting th1s item under other business. Extensive discussion occurred with regard to options the city would or would not have should the grant be approved. Mangan stated that if the city does apply for the grant (according to state requirements and guidelines), a plan must be submitted of the area showing what will be built on that site and its intended purpose, i.e. fishing dock, walking paths, gazebo, etc. Mangan stated that plans are for the Parks Advisory Committee to hold the required public hearing on August 29. Extensive discussion occurred on requirements of the grant and whether the city would have the option of refusing the grant should they disagree with the state's restrictions associated with the grant. Mangan stated that the City retains the sole right to accept or reject the grant based on our priorities and fiscal position. MOTION MADE BY WHITE, SECONDED BY LARSON, TO ADOPT RESOLUTION 91-36 FOR THE CITY OF PRIOR LAKE TO APPLY FOR GRANT FUNDING FOR FISCAL YEAR 1992. Upon a vote taken, ayes by Andren, Fitzgerald, Larson, Scott and White, the motion passed unanimously. City Manager Unmacht gave a brief update on the status of progress on the proposed Super Valu and More 4 stores. Discussion followed. The next Council meeting will be Monday, September 16, 1991 at 7:30 p.m. There being no further business, the meeting adjourned at 9:50 p.m. by general consent of the counCil.~ Dee Birch Recording Secretary 4 HER/TAGE /89/ COMMUNITY 1991 18J.'5V~ 1 ~ 2Q91 RESOLUTION 91-36 RESO~~ION FOR THE CITY OF PRIOR LAKE TO APPLY FOR GRANT FUNDING FOR FISCAL YEAR 1992 MOTIOllo"ED BY WHITE SECONDED BY LARSON WHEREAS, the City of Prior Lake will act as the legal sponsor for project(s) contained in the Community Development Application to be submitted on September 1st, 1991, and that the Mayor is hereby authorized to apply to the Department of Trade and Economic Development for funding of this project on behalf of the City of Prior Lake, and WHEREAS, the City of Prior Lake has the legal authority to apply for financial assistance, and the institutional, managerial, and financial capability to ensure adequate construction, operation, maintenance and replacement of the proposed project for its design life, and WHEREAS, the City of Prior Lake has not incurred any costs, has not entered into any written agreements to purchase property, and has not contracted for or begun construction on energy conservation measures for the proposed project, and WHEREAS, the City of Prior State, or local ~raft, kickbacks, ~ther unlawful or Lake has not violated any Federal, laws ~ertaining to fraud, bribery, collus1on, conflict of interest or corrupt practice, and WHEREAS, ~hat upon approval of its application by the state, the =ity of Prior Lake may enter into an agreement with the ~tate of Minnesota for the above referenced pro~ect(s), ~nd that the City of Prior Lake certifies that 1t will ~omply with all applicable laws and re~ulations as stated on all contract agreements and descr1bed on the (~ompliances Checklist of the Community Development ~ppl ication. 46290akotc.. 51. 5.E.. Prior Lake, Minnesota 55372 / Ph. (612) 447-4230 / Fax (612) 447-4245 HERITAGE 1891 COMMUNITY 1991 r~J.'c;(). l' 2tzg1 M E M 0 RAN DUM TO: FROM: RE: DATE: Parks Advisory Committee Members Bill Mangan, Director of Parks and Recreation PAC MEETING TO CONDUCT A PUBLIC HEARING August 20, 1991 Due to a whirlwind schedule to try to research a project that recently came up, I inadvertentl~ did not send out a letter of explanation to you before a Publ1c Hearing Notice came out in the paper. I apologize to you for this, however please read this memo carefully to get an understanding of what is going on. On July 20, 1991, Horst Graser, City Planner, received a letter of intent from Mr. William McDonald, owner of the 2 acre parcel next to the Wagon Bridge. The letter of intent spelled out an offer in which Mr. McDonald would be willing to sell the property to the City of Prior Lake. Two years ago, Mr. McDonald also offered the property to the City for $300,000 in which the City Council promptly denied because of the lack of funds. with this current letter of intent, Mr. McDonald is offering the property to the City under the following terms: $25,000 down payment Contract for Deed @ 10% interest $100,000 Gift to the City Total sale price of $245,000 $120,000 for 10 years I met with Dave Unmacht and Horst Graser to decide how we would approach this latest offer. It was decided that I would look into the availability of grant funds, Horst would look into private funds, and we would meet to decide how to approach Mr. McDonald. I found out that there are grant funds available, however, the deadline for applications is September 1. In this timeframe, I have to get a Resolution passed by the Council to apply for the funds and also conduct a Public Hearing to receive public input as to whether the City should apply for a grant. I received this information on Wednesday, August 14, after a meeting with the State Department of Trade and Economic Development. Dave was on vacation, so I met immediately with Kay Schmudlach, Assistant City Manager, and we decided to put the Resolution on the Council agenda for Monday, August 19; submit a Public Hearing Notice to the paper for August 29 to have the PAC conduct the Public Hearing; thus all of the requirements by the state would be met to be able to apply for the grant. THIS DOES NOT MEAN THAT WE HAVE TO PURCHASE THE PROPERTY---THAT DECISION 4629 Dakota 51. 5.E.. Prior Lake. Minnesota 55372 / Ph. (612) 447-4230 / Fax (612) 447.4245 MEMO TO PAC page 2 CAN BE MADE DEPENDING ON THE SUCCESS OF THE GRANT APPLICATION. After those requirements were met, I immediately began the process of filling out the application. There are land appraisals that have to be completed, drawings need to be done, plans completed, funding methods approved, etc. In all of this chaos, I thought that I would see how the Council reacted Monday evening and then either cancel the Public Hearing or inform the PAC that we would have a meeting to conduct a Public Hearin9. That is the reason for this memo---to inform you that the Counc1l passed the Resolution supporting the submittal of a grant application. Here is how the grant process works: 1. Prepare the grant application for submittal on August 30 (September 1 is a Sunday); 2. Inform Mr. McDonald that the City is seeking Grant Funds to assist in the purchase; 3. If successful, the City of Prior Lake could receive 50% of the grant application ($300,000 acquisition and development) or $150,000 which would be applied to the purchase of the property; 4. Mr. McDonald's contribution can be used by the City as an "in-kind" contribution meaning that the City's cost of acquiring and developing this property would be $50,000. with the new bridge going in, that parcel of land is invaluable to the Park System. It is the geographic center of the community, it is located on a County Trail, and there is historical significance to the property (Grainwood Crossing). So that is the history of what has been happening in less than a week---it has been a whirlwind pace. The Public Hearing is scheduled for Thursday, August 29, at 7:00 P.M. in the Council Chambers. Please mark your calendars for this Special Meeting. I do not anticipate a lot of people at this meeting. I would be very surprised if anyone would show up which is normal for a public hearing. Please remember that we are not conducting a Public Hearing to purchase this property---the Hearing is to receive public input for making an application to apply for grant funding, and the Cit~ Council has already passed a Resolution supporting the applicat1on. I apologize for not getting this to you earlier. If you have any questions or need clarification on any of this, please call me at the office to have your questions answered. Thank you for your cooperation and understanding. GRANT 1 HERITAGE 1891 COMMUNITY 1991 c{ rx J.'~. \ . 2C!91 September 4, 1991 Park Advisory Committee Mayor and City Council Members citizens of Prior Lake RE: Update on the status of the McDonald property Grant Application. On August 29, 1991 the Parks Advisory Committee conducted a public hearing on the acquisition and development of the McDonald property for park purposes. Enclosed is a copy of the minutes of the public hearing. Based on the public hearing, a decision was made by staff to remove the development of the William McDonald property from the grant application. Most of the conversation at the public hearing centered around the future use of the property if accepted into the park s~stem. Various recommendations and input were provided by the res1dents. Based on citizen input, it is premature to base a grant application on a future design. The im~ortant point at this time is to retain flexibility for acquis1tion through the grant process. Development of the property can come over time when other decisions have been made. According to Parks and Recreation Director, Bill Mangan, the following time frame is relevant to the grant process: 1. state officials will conduct a site review with City officials in October. 2. By December 1, the unofficial notice of application process. 3. By February 1, 1992, the official notice of Award of Funding is made. City should our standing receive an in the grant 4629 Dakota 51. S.E., Prior Lake. Minnesota 55372 Ph. (612) 447-4230 I Fax (612) 447-4245 It is important that both the Parks Advisory Committee and the City Council continue to discuss the decision to include this property in the municipal park system. I think it is important that a recommendation from the PAC and a decision b~ the council be made prior to receipt of the grant award. A dec1sion should be based on this property and its value to the future of the communit~ as opposed to the success or failure of the grant applicat1on. Obviously, if a grant application is not successful our decision, if we wanted to proceed, is subject to change. D vid J. Unmacht City Manager city of Prior Lake DJU:db Enclosure: As stated above HERITAGE 1891 COMMUNITY 1991 r&rSf)~ 1/~ 20J1 PARKS ADVISORY COMMITTEE MINUTES OF PUBLIC HEARING AUGUST 29, 1991 The Parks Advisory Committee met to conduct a public hearing on an Application for Grant Funds for the acquisition and development of the william McDonald property. The meeting convened at 7:10 p.m. Dou9 Berens, Chairman, read the public hearing notice as published 1n the Prior Lake American on August 19, and 26, 1991. Members present, Doug Berens, Pat Heaney, Ron Ceminsky, Art Schoot arrived at 7:35 p.m. (please note that a quorum was not present). Doug Berens opened the meeting for public testimony. City Manager, Dave Unmacht, gave a brief introduction to the meeting, the purpose of the public hearing, results of the discussion at the city council meeting on August 19, and the reason the Parks Advisory Committee was conducting the public hear ing. Doug Berens read a letter from Ben Baer, 15795 Eagle Creek Avenue, into the record. Ben Baer reiterated poin~s in his letter to include a recommendation to use public money 1n other places, the importance of recognizing traffic concerns along C.R. 21 and his recommendation that the property either be single family residential or some form of multiple dwelling (apartment complex). City Manager Unmacht stated that no staff recommendation has been made and that the public hearing and grant will provide the city flexibility on making a decision related to the McDonald acquisition. Wayne Miller, 4094 Wagon Bridge Circle, addressed questions relating to the design and cost of the project. City Manager Unmacht noted than an appraisal is being done on the property. Extensive discussion occurred with all members in attendance relating to the proposed design of the park within the Grant Application. Issues addressed included: The feasibility of the fishing pier with boat traffic in the bay, hours of the park, managing and controlling the park, and the future of the property adjacent to the park. Jan Ballard, 3950 Green Heights Trail, indicated that it appeared to be a good idea to have the City acquire the property, but the plans don't seem to fit at this time. Jeff Grant, Security state Bank, Glencoe, MN said that acquisition of the property would be a unique opportunity for the future of the Prior Lake park system. Parks Advisory Committee Member, Pat Heaney, stated that the ap~lication provides an interesting forum for discussion, that he 1S not happy with the existing conditions of the land and that the Parks Advisory Committee will consider the citizen's recommendations and the 4629 Dakota 51. 5.E., Prior Lake, Minnesota 55372 / Ph. (612) 447-4230 / Fax (612) 447-4245 acquisition of the property in the future. Doug Berens stated that the proposed design for the grant is consistent with other parks within our system. Wayne Miller recommended that the City check into the ordinances to determine if we can improve the status of the property under its current ownership. Jim Sentyrz, 16534 Franklin Trail SE stated that he agrees with acquiring the parkland, but he has reservations on the use of the park and the parking plan recommended within the application. Ben Baer stated that he concurred with Sentyrz's comments relating to parking on the land and has had discussions with individuals who both oppose and support the project. Baer reiterated his point on foot trails being acceptable as opposed to automobile parking. City Manager Unmacht reported on a future discussing the decision on the acquisition the park. ThQpublic hearing closed at 8:45 p.m. fW~ o.cfVid J. Unmac t Cf ty Manager process to continue and development of 1992 CAPITAL BUDGET and 1992-1996 CAPITAL IMPROVEMENTS I. Description and Location: McDonald Park Acquisition & Development The land is adjacent to County Road 21 and Quincy Street. II. Purpose: To acquire and develop a 2 acre parcel adjacent to County Road 21. The property would assim- ilate well into our Heritage Park Plans. Public lakeshore is a scarce resource, therefore the central location of the parcel would be ideally ~I litl:ln f",,. . I 1~1:l I CIP-3Q I Parks & Recreation McDonald Park Acquisition & Develop Project Number: Project Useful Ufe: Department: Projoct Tltlo: 50 years III. Needs Assessment: Priority Ranking: Med (2) 1 l I , I I I I I I I I I I I I I I I Project Financing 1992 1993 1994 1995 1996 Property Tax 50,000.00 Special Assessments Federal State County City MSA Funds Fund Balance Equipment Certificates Grant/ Contributions 250,000.00 Other / (project Levy) Total 300,000.00 IV. Cost/Benefit Impact Statement: The City has been investigating adding this property into the park system for several years but has been unsuccessful due to cost and priority considerations. McDonald has completley restructured his offer which complemented with grant funding could make this a viable project. Project expenditures 1992 1993 1994 1995 1996 Construction (New) 50,000.00 Renovations/Repairs Land Acquisition 250,000.00 BuUdings & Plant Equipment Vehicles Other Total 300,000.00 i'."", ".,,,.;" "'-}t' 'is~f;15" .?;;':~:;~; ,.. ;J .NOTICE Of PROPOSED PROPERTY TAX FpR 1992 PROPERTY TAXES YOUR CITY, COUNTY AND SCHOOL DJSTRlpT PROPOSE TO COLLECT... c , IlE!:TlIlGS YOU CAlI ATTIJlI) TO 6111E YOIIl 01'1 HI ~ ON Tr. AHOUHTS IF TAX....... ~~ I', ..}./ PROPERTY OWNER<$> PRO~RTY IDENTIFICATION I I I I Ii RICHARD L & NORENE LEWIN 5322 CANDY COVE TRAIL SE PRIOR LAKE HN 55372 .'""....._..~.;.- 'lOUR crno COUNCIL <IF YOU LIVE IN A CITY), YOUR COUNTY .; COMMISSIONERS AND YOUR SCHOOL BOARD WILL HOLD HEETINGS i,:lE.,~;rSODN TO DECIDE ON THEAHOUNT OF PROPERTY TAXES TO ):~",~';COLLECT IN 1992'TO PAY FOR SERVICES THEY PROVIDE. AT )<G\~;THESE HEETINGS.' THE COUNTY BOARD AND CITY COUNCIL WILL ,:;Z:',i,iALSO DISCUSS THEIR PROPOSED BUDGETS FOR 1992 AND THE 4,:~)\;SCHDDL BOARD ~lu. DI SCUSS ITS BUDGET FOR THE CURRENT - . . ,~',-;;SCHOOL YEAR. ".. i:'J~,:;\:',;~:.i\,.:" . . '" !i!i1k:~LINE 1 BELOW SHOWS THE APPROXlHATE PERCENTAGE CHANGE "(;:({IN YOUR 1992 PROPERTY TAX IF THE PROPERTY TAX AHOUNTS .:t~''!;NOW BEING CONSIDERED BY YOUR CITY t..COUHTY AND SCHOOL ISTRIeT ARE ~PROVED. THE TOTAL AnOUNTS OF PROPERTY X YOUR cn~j'/c~QUNTY AND ,<'/j~..1i.., 1992 PROPERTY TAX CHANGE FOR YOUR PROPERTY . . . CITY OF PRIOR LAKE "-,"2 TOTAL TAX PROPOSED FOR 1992 ~" :. '~'..$TOTAL TAX FORU91 :.:::,':'i~?':'~",' ,,' .,-~....~-_. ,;;:-c-i:CHANGE FROM .1991 TO 1992 '!::,.!:!~>\" .,;,' ,<': J/'\~,10NE-YEAR POPUl..AllOH CHANGE 'r~" ',-" IMES AND PLACES OF MEETINGS ,PROPOSED;,; . ",~~-';; " "':\"'1 $ It~98,881 ~_1 J 5~~, 925 + a....t + 5.7~ ,') ;.. ~i) 41.~. '~'A.' 1/ ""i', / <~ ,0" (', '. S' :/) ry/ ..r/' ~ "f', c. /.~ ,._,:/ · J>7 .' "'~r,' "Q;, 36 115 22 . 27 START SW COR LOT' 1, CANDY COVE PARK: SN 100' TO POB.I NW 11.....' SN 100', SE 12', TO POB . 'I .... --+.-,,-..-.. . SCHOOL DISTRICT ARE NOW CONSIDERING ARE SHOWN ON LINE 2. UPCOHING REFERENDUHS~ LEGAL JUDGHENTS~ ~~~tlE~IE~S~f~fA ~5E~A~E~uEfS~7~~R~~I~aV{~~E AMOUNTS.' THIS NOTICE DOES NOT SHOW PROPOSED PROPERTY TAX AHOUNTS FOR SPECIAL TAXING DISTRICTS- SUCH AS WATERSHEP ANJ) HOSPITAL DISTRICTS-BECAUSE THEY COLLECT' COMPARATIVELY SHAll ~HOUHTS. I YOUR CITY COUNCIL1 COUNTY COMHISSIONERS AND SCHOOL BOARD MEHBERS INV TE YOU TO ATTEN'I> THE HEETINGS AT THE TIMES AND PLACES SHOWN BEL W TO EXPRESS YOUR OPINIONS ON THE PROPOSED AHa NTS or PROPERTY TAX BEFQRE THEY ARE VOTED ON. . . . . ., . ~ . . . . + 5.9~ . . .. . . . . COUNTY Of' SCOTT , SCHOOL DISTRICT 719 PRIOR LAKE $ 13,OO~t881 $ l1,~.Q~ + 9.n; I I $ I ",35",806 .. ,.~'.__ __. _.$.. _',501,854--...,.. . - 3,3.t. + . 5~ : ii + . 7~ :, I .1 8:00 P.M. NOV 18 7:00 P.M.NOV 19 '7:90 P.M. NOV 25 CITY HALL BOARD ROOM ~- COURTHOUSE DISTRICT SERVICE CYR. 4629 DAKOTA ST. SE. 428 S. H~S SY. 5300 WESTWOOJ) DR. SE. PRIOR LAKE ~OP' : 'l PRr OR LAKE CITY ADMINISTRATOR . SCOTT COUNT., BOAR]) JERRY PHILLIPS '4629 ])AKOTAST~ >.St; '.' . SCOTT COUNTY COURTHOUSE PRiOR LAKE SCHOOLS PRIOR LAKE; I1t:1. 55372 "28 S.HOLHES ST. 5300 WESTWOOD ])R. SE. -$HAKOPEE, "H. 55379. PRIOR LAKE, HH. 55372 ....7-..230 ,~96~B10f' 4'Y-2185 . I . '.' . I I really believe that property taxes are at high enoIJgh levels.. Hold YOIJr spending to current revenue lev~ls. Don1t tax to meet your proPDffed spending. I . . ' i I I I I .. \'