09-24-2014 Council Workshop Minutes

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MINUTES CITY COUNCIL SEPTEMBER 24, 2014 Without these dollars, fund shows a slight deficit in 2019. (This will be discussed in greater detail at an upcoming workshop.) • Infrastructure Improvement Fund (450) — Added in possibility of Centerville Road in 2015 whereby we would finance the project for a couple of years and then be reimbursed the County's share. This is still a tentative plan. We also proposed to major full depth pavement reclamations on Country Drive and South Owasso as part of our normal program. • Water & Sewer Capital Replacement Fund (604) — This fund will effectively make the debt service payments for the new garage. We have also funded some other equipment and furnishings for the new building from this fund totaling $93,200. The Administrator also noted that staff has included an estimate for utility costs for the new garage. • Water & Sewer Funds (601 & 602 respectively) are still very tentative given we have only billed two quarters of the year. We expect our reduced percentage of payment to St. Paul Regional Water (71% to 65% plus a $7,800 fixed fee per month) will give us some relief. Met Council Environmental Service charges (sewage treatment) bounced back up but not as high as they were. We should be in decent shape in this fund. The Council discussed the reduced percentage payment to St. Paul Regional Water, with concern expressed that with the addition of the $7,800 fixed fee per month, the reduction in the rate from 71% to 65% may be negated. The City Administrator indicated that he would do some analysis relative to the addition of this fee and its impact to the City. Blesener stated that his goal would be to reduce the gross levy increase without utilizing additional Local Government Aid (LGA) dollars. The Council discussed in detail various Gross Levy percentage increases and the corresponding Net Levy increase. Keis indicated that he was O.K. with certifying a preliminary Gross Levy increase of either 4% or 3.5% with the goal in certifying the final levy at no more than a 3% increase. Montour suggested that the use of any additional LGA dollars to buy down the levy be no more than the corresponding Gross Levy percentage increase. Montour noted that this would essentially be an inflationary increase. The City Administrator pointed out that while the City's goal is to not increase reliance on LGA in the General Fund, an inflationary increase would result in maintaining that reliance at the same level as 2014. McGraw noted that any reliance on LGA in the General Fund could become a problem in the future. McGraw indicated that his first preference would be to try to save dollars from the 2015 Budget. McGraw pointed out the City's philosophy to use LGA dollars for one-time projects. He felt that the use of LGA dollars in the General Fund should only be the City's fallback position. Keis agreed, and noted that given the 4