09-28-2015 Council Work Session Minutes

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CITY COUNCIL WORK SESSION September 28 , 2015 APPROVED 1 CITY OF LINO LAKES 2 MINUTES 3 4 DATE September 28 , 2015 5 TIME STARTED 5 : 10 P . M . 6 TIME ENDED 6 : 20 p . m . 7 MEMBERS PRESENT Council Member Stoesz , Kusterman , 8 Rafferty , Roeser and Mayor Reinert 9 MEMBERS ABSENT None 10 11 12 Staff members present : City Administrator Jeff Karlson ; Community Development 13 Director Michael Grochala ; Finance Director Sarah Cotton ; Public Services Director Rick 14 DeGardner ; Public Safety Director John Swenson ; Environmental Coordinator Marty 15 Asleson ; City Clerk Julie Bartell 16 17 1 . 2016 Preliminary Budget Review — Updated budget and gap analysis 18 information was distributed . 19 20 Council Member Roeser noted that he had spoken with the Anoka County Assessor ' s 21 Office and he learned that the market value increase that they forwarded for payable 2015 22 taxes was actually larger than needed and therefore the next year (payable 2016 ) becomes 23 a correction situation . The following year should show an average increase in market 24 value , probably in the area of three to six percent . In addition there will be new homes 25 and businesses that will show up on the tax rolls by then . Those are considerations for 26 looking ahead to the 2017 budget . He also discussed the city ' s Closed Bond Fund ( CBF ) 27 and noted that it is made up of funds from debt service that is fully satisfied . He noted 28 that the fund has accumulated a balance because debt service accounts were funded at a 29 level of 105 % and interest was paid to the account in some situations . The Legacy fund is 30 actually the opposite situation where the city has paid the debt service but not been paid 31 back ; taking from CBF could be seen as a repayment for that also . The council should 32 establish a policy on use of the funds . Community Development Director Grochala 33 explained , regarding repayment of the Legacy bonds debt that the tax increment from the 34 district and facilities lease revenue is covering that cost now and ultimately it should be 35 paid back by land proceeds . Council Member Roeser suggested that the city doesn ' t 36 want to sit on the ( closed bond) funds because they can lose value ; the money should be 37 returned to the taxpayers . 38 39 Mayor Reinert noted that the city is looking at a spike in the budget right now and in 40 government that ' s not a good thing and it ' s better to round it off. He recommends that 41 the council have an overall discussion about the CBF . He sees it as a surplus and it 42 should be given back to the taxpayers by lowering taxes . Administrator Karlson noted 43 that the bonds are a reserve . Council Member Kusterman suggested that the funds ( in the 44 CBF ) are both surplus and reserve — they are reserves until they aren ' t needed as such and 45 then they become surplus . 1