07-08-1999 Charter Minutes - Laserfiche WebLink

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Charter Commission July 8, 1999 Page 3 Audit- The exit interview with the City's audit firm occurred today. The firm will make its official report to the City Council in the near future. Bond Refinancing - On July 12, 1999,the City Council will also authorize Springsted Public Finance Advisors to pursue refinancing of several outstanding bond issues. The combined interest savings due to lower current interest rates will save the City (and its taxpayers) about$200,000 over the life of the bonds. The refinancing does not extend the duration of the bonds. Gas Franchise Fees - The City has an expired franchise agreement with Minnegasco. The agreement does not require payment of fees. On July 12, 1999,the City Council will officially authorize the City Administrator to negotiate a new agreement that includes collection of a fee. In the same action,the Council will direct that at least 50% of any new franchise fees collected (net of direct expenses)be dedicated to the road reconstruction fund. Commissioner Corson asked if the franchise fees from Circle Pines will also go to the road reconstruction fund. Ms. Waite Smith advised those fees are already in the budget and accounted for. Any new franchise fees will be allocated to the road reconstruction fund. Commissioner Rehbine asked if franchise fees are typically put in to the General Fund. Ms. Waite Smith advised every City does things differently. However, franchise fees are typically put into the General Fund. Chair Montain asked for an estimate of new franchise fees. Ms. Waite Smith stated that based on a rough calculation, the City could acquire $60,000 per year from Minnegasco. Comprehensive Plan Members of the City Council have not reached consensus about how much MUSA acreage should be requested in the Comprehensive Plan. In addition, two other issues are outstanding: regulatory mechanisms to implement the Plan and"checkerboard" development that doesn't maintain at least 40% open space. Everything except the MUSA recommendation has been submitted to the Metropolitan Council. The Council will not proceed to formally review our submittal until the City provides the MUSA recommendation. At this point, even if the Council reaches agreement in the next month, the City's submittal is at the end of a long line to be reviewed. Chair Montain asked if the Five-year Plan will be helpful to the City's administration. Ms. Waite Smith stated the Five-year Plan is an excellent tool and is a very positive thing. 3