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COUNCIL FINANCE WORK SESSION MAY 10, 2000 <br />in detail noting the total required reserve for cash flow requirement, per Resolution No. <br />91— 03, is $2,878,954 or 50% of the General Fund. Preliminary calculations indicate a <br />reserve of $2,826,877. <br />Mr. Rolek advised the Council might want to change the reserve policy. He suggested <br />the policy include a reserve range. <br />Ms. Waite Smith noted the City also has money in other funds, which are generally <br />dedicated for purposes other than general operations. <br />REVIEW LEGAL DEBT LIMIT REQUIREMENTS <br />Mr. Rolek distributed information regarding the Computation of Legal Debt Margin. He <br />reviewed the information in detail noting the debt limit is 2% of the City's market value. <br />He added that the information compared 1999/2000 to 1998/1999. The City's current <br />debt load amounts to a small fraction of the allowable amount. <br />Staff gave examples of each of the following types of bonds: c = 7 <br />Proprietary Bonds, Public Project Revenue Bonds. <br />FUTURE CAPITAL IMPROVEMENT NEEDS, L <br />Mr. John Powell, City Engineer, distributed a <br />Program Summary. The handout liste <br />the year 2000 and 2001. <br />PROVING FOR FUTU <br />ment Bonds, <br />Preliminary Capital Improvement <br />of projects and funding sources for <br />QUISITION/REPLACEMENT NEEDS <br />Consider Establi <br />advised that typic <br />equipment for future <br />revolving fund in pl. `- . <br />Indebtedness bond to cover major capital needs. <br />ving Funds for Major Capital Needs — Mr. Rolek <br />e a mechanism in place to fund the replacement of <br />Currently, the City of Lino Lakes does not have this type of <br />It has been the City's practice each year to issue a Certificate of <br />Mr. Rolek stated a revolving fund allows money to be available when it is needed. He <br />suggested Council explore the possibility of establishing revolving funds. Presently, it is <br />a good time to establish such a fund because of the expanding tax base and the possibility <br />of levy limits being eliminated. <br />Park and Trail Development/Renovation — Effect on Park Dedication Fees due to <br />Preservation -Style Development, Rick DeGardner — Mr. Rick DeGardner, Public <br />Services Director, stated that historically park development has relied on park dedication <br />fees. If the City continues this practice, the City needs to recognize that there will be less <br />and less dollars due to preservation -style development for park development. Residents <br />need to be aware that there will not be money to develop parks. Another issue is the <br />2 <br />