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HomeMy WebLinkAbout07-17-84 Council Workshop MinutesMINUTES Ol~ Tk1E [dORiCSHOP M~L'TING CITY COiINCIL LI'CTLF CANADA, MINNESOTA July 17, 19£14 Pursuant to due call and noti.ce thereof, a worlcshop meeting of the City Counci.l of. the City of Little Canada, Mi.nnesota was held on the 17th day of July, 1984 in the Counci.l Chambers of the City Center located at 515 Little Canada Road in sa~i.d City. Alayor Raymond F~lanson chaireci the meeti_ng and callec! iC to order at 4:30 P,M. and the f.ollowing were present aC roll cali: MEMB}'sRS PRI;SENT: ALSO PRPSENT: Mayor Councilman Counci.Lman Councilwoman Counci.lwoman City Clerlc City Auditors Recordi.ng Secretary Mr. Raymond lianson Mr. Michael F'ahey Mr. Dennis Forsberg Mrs. Mugs Nardini. Mrs. T3everly Scalze Mr. Joseph Chlebeclc Mr. Robert Voto Mr. Rob Tautges T4rs. Kathleen Glanzer Mayor Raymond lianson opened the workshop meeting. The purpose of. the meeting is so that the City Auditors can present various f.i.nancial reports of. the City to the Counci.l. The first report presenCed cvas the Annual. Pinzincial Report of the City through December 31, 1983. Mr. Voto reported that the City received a clean opinion in this report ~aith the exception ot fixed assets. The reason for this is that the City does not have a physi.cal inventory control sysCe,m. Mr. llanson asked if the report wi11 result in an i.mproved bond rating. Mr. Voto replied that he di.d not think so as emphasis is being pl.aced on the State situation. Voto reported that some cities are receiving decreased bond ratings. Mrs. Nardini aslced if when the City has a computer system, i.f. this cai11 take care of the Eixed asset question. Mr. Voto sCated that this wi.l1 Ue considered when the City i.s Looking at various computer systems so that this wi11 be a possi.bility in Lhe future. Voto reported that of the 16 c.i.ties that they audit, there are f.ew with i.nventory control systems f.or fixed assets. The next report that was presented was the Nlanagement Report And Recommendations through December 31, 1984. Voto reported that the Ci.ty has experienced a 57.5% revenue increase over a five year period in the General. Fund and Special Itevenue Pund, Page -1- MINUTES Ci_ty Counci.l Ju7.y 17, 1.9£S4 Expenditures from these f.unds i.ncreased 53a7% over this same period, Thi.s reflects the Ci.ty's e£forts to improve the reserve balance of. the City's Gener.al Pund. Voto farther reported that the Ci.ty can expect a 19% cut in State Aid £rom the 1983 amount. Voto reported that the City is doing a good job of i.nvesting surplus funds. The reason for the decrease in interest earnin{;s is due to a decrease in yiel.ds. Voto reported [hat the City's taxes r.eceivaUle rate f.or 19II3 was L00%. Voto felt thaC the reason for this was that the City started notif.yin~ delinquent property owners. Also the 1983 coll.ection rate for special assessments ~vas 17.9% as the City pi.cked up some delinquencies. Mr. Voto reported that there was an improvement to Che General Pund during 19£33 of $61,500. Mr. Hanson asked how Little Canada compared to the other cities that Mr. Voto audi.tse Voto reported that in compari.n~; the var~i.ous areas the City's general Eund reserve balance is at par or above average, special assessments the City is on top, assessmene col7.ections the Ci.ty is superior, As far as State Aid goes, the City i.s on the bottom and one o£ the Uig losers in the T~oin Cities group. Mr. Voto repor.ted that the City ~aas showing projected def.i.ci.ts in the 1966-1967 bonds of up to $300,000. However, ~ai.th the non- resident connec[ion charges that have been collected recently, there ~oill be no projected defi.cit. Mre Hanson asked if the City wi7.1. be able to ease up on addi.ti.nnal levies for these bonds< Mr. Voto reported that the City stopped this last year, but now there i.s no question. Voto felt that unless somethin~ drastic happened, the City would be at surpl.uses. Mr. Fahey asked how the City coi.ll pay for spri.nlclering the City Center and Fire Ha11, Scalze stated Chat she thought this would Ue included in a water improvement for this year, The Clerk reported that the City has requestect bids on the outside work. The Clerk thought that there were funds available for the Fise Ha11 in the Pire Truck Tund. Mr< rahey felt that the City coul.d get ~oing on Che bi.ds for the inside worlc as well. The rest of the Council a~reed, The Auditor stated that there should be funds availabl.e for the spri.nlclerin~; oE the Ci.ty Center as well, Mrs< Scalze aslced if Mr. rrattalone wanCed the water Lor his Ar.cade Street project. The Clerk replied that he thought Mr. P'rattalone no Page -1_- MiNU•rrs city council. July 17, 19£34 l.onger wanted war.er and woulct put wel.l.s in. Mr. Voto reporCed that Revenue Shari.ng Regul.ati.ons have been amended to requi.re that recip:i.ents comply with Revenue Shar.ing Handicapped Regulations. City faciliti.es caill have to be looked at to determine i£ they meet the rep,ulations. Voto stated that he does not lcnow what the requi.rements are as ot yet an<1 will get further information. P1r. Voto recommended that to simplify records, the Ci.ty should start budgeti.ng for Diseased Tree Fund next year. This no 1.onp,er needs to be a separate Eund. Mr. Voto reported that f.uture Fire Department budgets should be decreased by ~10,000 to eliminaCe budgeting for equipment as the City has decided that such equipment would be bonded for in the future. Voto reported that the Park Pund Ualance for 19II3 was $126,668. Nfr. Pahey reported that three different property owners in the Centerville Road area are interested i.n sel.ling T.heir property and the price is in the area that the City anticipated. Mrs. Nardini asked how the park permit money ~aas generaCed. Mr. Voto repli.ed that this comes from bui.lding permits. Voto again stated that the tax collection r.ate was 100% in 1983 and speci~l assessment collecti.on rate was 119%. 'f.he only probLem was with the sewer bonds of. 1966 an<I 1.967 and this has been resolved by t6e non-resident connection charges< These bonds will have to be studied to determine whickl Levies should be made ancl which cancelled. Mrs. Nardini commented that the City must keep in mi.nct that when the Large interceptor line goes throug,h the City,the City wi11 have to build a sma11 liPt station on County Road R-2, Voto reported that the City is in a similar. situation wi.th Che MLJCC as are other citiese liowever, the City i.s still in a good cash deficit position, Mr. Voto recommended that the city loolc at rates to cover current cost for. water and to take care of. the cash deEi.cit that the Ci.ty has. Voto stated that one of. the reasons for the cash deficit is ].arge water losses that the City has had in the past. Mrs. S~alze aslced how the cashdef.icit got to the point of $62,000 in 1.977. Voto stated that he wi.ll investip,ate this. Vot:o reported that the Y9WCC estimates lalce overLl.ow charges at $38,000 f.or 1984< Mr. Pahey pointed out that sewage was dumperi into Gervai.s, 1nd the ditch system upstream that the City shouLc! get credit for this in overflow charges. Page -3- MINUTES City Council Su1y 17, 19£34 Council felt that this should be referred to the City Attorney for an opinion. The following is a summary of items and recommendations contained i.n the 1983 Management Report: *Moni[or legislati.ve acti.on to determine any changes i.n formulas whi.ch will affecC the financinp of CiCy oper.ations. -,Approve and record interfunc! cash transfers to effect the interfund audit adjustments and year-end closing adjustments of December 31, 1983. -~Continue to monitor the property tax collection rates to determi.ne the availabili.ty of. monies Co support levy-related expenditures. ''~Continue City ef.f.orts to moni.tor deli.nquent assessment collecti_on rates. >'~Continue efforts to mai.ntain complete updated subsidiary listings of special deferred special assessments. -`Continue ef.forts to monitor the avaiLaM li.ty and quality of speci.al assessment data availaUle at the County. °'~Continue efforts to improve the reserve balance of. the Gity's General Fund and consider efforts to designate reserve balances for various purposes. >'~Conti.nue efforts to monitor compliance with all. ftevenue Sharing regulations with particular emphasis on the newly enacted Handicapped Regulation. ~',Consicler closing the Deseased Trees Pund to the General I'und. >'~Upon final bond payment~ close the Muni.cipal tSuilding 13onds Fund Co the General Pund or to another City Council desi~nated fund. '~Close the rire Truck Acquisition P'und as detail_ed in these comments. ~~Close the Senior Citizen Project through a Council approv~l transfer Prom the City's General Pund. *Conti.nue to monitor the projected financial positi.on of the various s~ecial assessment debt service funds. -~Upon completi.on of the various special assessment construction accounts, approve the closing of such accounts to the related debt service account or other funcis as appropriate. -`Continue efforts to moni.tor the fi.nancial posi.tion of the City's water Page -4- MINI)'1'F.S City Counci.l ,July 17, 19F34 and sewer enterprise Tunds and conti.nue to adopt user rates at levels adequate to f.inance the various expenses incurred. '~Review City purchasin~; procedures to assure compliance with Minnesota Statutes 471.345. `Revie~v internal control procedures i.n conjunction w.ith the proposed acquisition of an in-house computer system and take action to assure an etficient conversion process. The next report pr.esented to Che Council was Financing Loca1 Government in the 19E30's. Mr. Voto reported that this report would define the State Uudget sit:uation and the relat:i.onship between State and l.ocal governmentse The report will also shoo~ how the State resolved its budget problem and try to f:orecast what citi.es can expect in the future. Mr. Voto reported that one of Che things the its attitude of who financed what. This was Districts pick up a greater portion of their taxes< In 1.982 School Districts' tax levies by two years of 11% increases. During the f. property taxes increased 71%. State did was change done by having School Lunding through property increased by 29% followed i.ve year peri.od ending 1984, Plr. Hanson asked what impact decreasing ~roperty values wi11 have. Mr. Voto felt that the ne~aspaper articles on decr.easi.ng property values were not true. Voto stated that he beli.eves there will be more valuation decreases, but these decreases are because prices ar.e inflated. Voto felt that the decreases wi11 be especially seen in commercial propertiese Mr. Porsberg commented on Che valuations i.n the City. Mrs. Scalze commented that f.or years properti.es in the C:ity caere undervaluated. Voto reported that the major portion oE the City's debt is tied up in special assessment debt. In 198$ the Ci.ty's levies will begin to decrease. Mr. t~orsberg r.eminded the. Council thaC the City wi.11 have to determi.ne how to finance the repair or replacement of. some Ci.ty streets. Mrse Scalze suggeste<1 that the huditor could report on how the City could f.i.nance something lilce this and what other cities ar.e doi.n~, Voto replied that suburban cities usually use the special assessment process for assessin~; the cost of street replacement, If. the City does not assess the cost, the only other vehicle the City coul.d use would be a referrendum. Pahey commented that i.n that case~ the City will have to assess the cost. Page -5- P9INUT}iS City Council July 17, 19F34 Mrs. IVardi.ni stated that she di.d not see a problem with this as when a coater project goes in, t:he property o~oners are assesse<( Lor the cost of road replacement. Mr. Pahey pointed out that property owners are not assessed for repairs on Coimty streets, but there is more tr.affic on a County street. Mr, Voto commented Chat there is the feeli.ng that property owners should not be assessed as they have already paid for a road, however, if. sr.reets ar.e not replaced and just deteri.orate, property values go down. Voto pointed out that the least amount the City can assess is ?0% under the special assessment pr.ocess. i~1rs. Scalze suggested that Mr< Voto give T.he City a report on this subject based on the report the Ci.ty recently recei.ved from the Ci.ty F.ngineer, Mr. Voto went through the various tables contained in the Fi_nancing Loca1. Government in the 1980's report. Voto pointed out that Ramsey County is a big loser in the local. government aids formula< Voto commented that Ilennepin County was a strong lobbier for khis Lormula and benefited greatly by it. Mrs. Nardini aslced why this happened to Little Canada. Voto r.eplied that it was not because of anything the Ci.ty did, the formula was State mandated. In 1979 or 1980 MinneapLis got the aLlocation f.ormula changed and this went into eff.ect in 1984. Voto stated that he felt Minneapolis looked at T.he Situati.on and analyze<1 it and then came up with the formulae Mrs. Nardi.ni aslced i.f there was anything that the Ci.ty coul.d do aUout the formula, Mr. Voto replied that the City could lobby. Mrs. Scalze pointed out that Roseville and Maplewood have got together and hired a l.obbiest. Mr. Hanson commented that [his costs money. Mr. Voto repli.ed that i.t mip,ht be more expensive not to lobby. Council had no furCher questions oE Mr. Voto on the financi.al reports presented. T4r. Hanson thanlced the auditors for their excel.lent reports. There bein~ no further business, the meetin~; ~vas adjourned at 5:55 P.M. Respect~fully submitted, ,,, C '~+){+\ ~~ / ' ~ (//. ~ / ) ,L.. ~Nl `~~~~C~. ~ 1 .'~_ ~S .,1'.....c ~~~'~~....~ 1( D ~Y}1~PPn ~-1.7.T1Z^~" ~.) Recording Secretary Page -6-