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WORKSHOP MINUTES <br />CITY COUNCIL <br />NOVEMBER 30, 2022 <br />increases that will have to happen in order to keep the fund balance from going negative and <br />absorb the large water costs that will start in 2023. <br />The Finance Director stated that at this point, staff is asking for direction from Council on at <br />least what to charge for the 2023 rates. Miller stated that she understands that we have to <br />increase the rates to cover the increased costs the City will be receiving. There was Council <br />consensus to follow staff s recommendation for the 2023 rate increases. <br />Torkelson stated that he would recommend standardizing the seasonal rates so there aren't <br />different summer and winter rates, and consider having a higher base rate rather than <br />consumption rates. <br />GENERAL CAPITAL FUND & FIRE EQUIPMENT FUND AND FINANCING <br />OPTIONS <br />The Finance Director explained that the General Capital Fund will go negative in 2026, but there <br />are a few sources of revenue or potential revenue that could change that. He reviewed <br />Doug Green, Baker Tilly, stated that Little Canada is in very good financial shape and has rarely <br />issued bonds. He explained that financial planning ahead helps cities determine their cash flow <br />and how they should pay for things, using cash or issuing bonds. He explained that the Federal <br />Government sets the whole financial system and state statute authorizes cities to borrow money. <br />He reviewed different types of options for cities to issue debt, and pros and cons. He stated that <br />a city cannot issue debt, except in a rare situation, or increase the levy to pay for water and sewer <br />costs, the rates must be set to cover costs. He reviewed the advantages and disadvantages to <br />using cash and bonds. <br />There being no further business, the meeting was adjourned at 7:29 p.m. <br />John T. Keis, Mayor <br />Attest: <br />'stop er He eman, City Administrator <br />0 <br />