10-27-14 Council Packet - Laserfiche WebLink

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CITY COUNCIL WORK SESSION September 22, 2014 DRAFT DATE TIME STARTED TIME ENDED MEMBERS PRESENT MEMBERS ABSENT CITY OF LINO LAKES MINUTES : September 22, 2014 . 8:30 p.m. . 9:30 p.m. : Council Member Stoesz, Kusterman, Rafferty, Roeser and Mayor Reinert : None Staff members present: City Administrator Jeff Karlson; Finance Director Al Rolek; Public Services Director Rick DeGardner; Community Development Director Michael Grochala; Public Safety Director John Swenson; City Clerk Julie Bartell 1. Review of Fund Reserves — Terri Heaton, Springsted, Inc., the City's financial advisor was present. Mayor Reinert noted that the staff report on this matter was submitted to council members very late so discussion at this point will be limited to allow future discussion after more time for review of the information. Finance Director Rolek explained that the staff report includes information on all city funds including their purpose and reserve balance. He has also provided information on interest income by fund since 2008. He reviewed the different types of overall funds — general, special revenue, debt service, enterprise and agency and fudiciary funds. It was noted that state law does include some restrictions on the investment of city reserve funds. Mayor Reinert noted an overall increase of $3 million in last three years and Mr. Rolek responded that the city has received an advance of Municipal State Aid (MSA) funds from the State in the amount of $3.5 million. Mayor Reinert said he is interested in having a better understanding of the increase in reserve funds over the past few years, including the interest that is yielded from the funds. He understands that the state limits the type of investments for the city but he is also concerned about the possibility of losing money by simply holding it in account. He feels it is an important discussion for the council. Council Member Roeser noted the road fund reserves and asked why the city isn't spending that money down when road projects are needed. Community Development Director Grochala responded that staff is always working on planning for future road improvements that will utilize those funds.