11/22/2005 Council Minutes - Laserfiche WebLink

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CITY COUNCIL WORK SESSION NOVEMBER 22, 2005 APPROVED • 1 2 City Engineer Studenski stated if the future lot assessments were to be deferred, the City 3 would have to carry a cost of $138,428.30 until the residents decide to subdivide their 4 lots. The lot subdivision would then start the assessments payoff process. He referred to 5 the Preliminary Assessment Roll that included Deferred Future Lots. 6 7 City Engineer Studenski advised 5 of the 8 property owners are in favor of the project. 8 Due to the current balances and projected expenditures of the City Trunk Fund, staff does 9 not recommend the deferral of any assessments at this time. 10 11 Council directed staffto move forward with authorization of plans and specifications for 12 the Lois Lane utility extension allowing for deferred assessments. Council also stressed 13 the importance of putting a policy in place for future projects in terms of deferred 14 assessments and project petitions. 15 16 FIVE YEAR FINANCIAL PLAN 17 18 Finance Director Rolek referred to the first draft of the 2006-2010 Five Year Financial 19 Plan. The plan was developed with the underlying values of meeting the City's obligations 20 to the citizens of Lino Lakes, maintaining service levels, and holding the line on costs and 21 taxes in a growth environment. 22 23 Finance Director Rolek advised the draft plan anticipates an overall increase in 24 expenditures of 53.42% for the 5 -year period. Anticipated growth in the tax base was 25 estimated at 10% per year. This includes both inflationary growth and new construction, 26 but does not include any unapproved developments, i.e. Hardwood Creek. This was a 27 conservative estimate as actual growth has been averaging about 12-17% over the last 28 several years. The net result is an overall growth in tax base of 66%. Given this rate of 29 growth in the tax base, the city tax rate in the plan is scheduled to be reduced from 30 42.223% in 2005 to 41.393% in 2010. 31 32 Finance Director Rolek stated a general inflation factor of 3% per year was used 33 throughout the plan. A number of areas, such as energy, fuels, insurance, etc., were 34 increased at a greater rate due to market conditions. The primary drivers for increases 35 within the draft plan are staff additions, pavement management, capital equipment 36 replacement planning, and energy costs. Anticipated staffing needs of 22 employees, 37 related benefits and other personnel costs, were included from 2006 — 2010. The Fire 38 Protection budget anticipated increases of 5% per year in response to City Growth. The 39 completion of the transaction from certificate of indebtedness financing to current 40 financing of equipment replacement, eliminating future interest expense, is an integral part 41 of the plan. Planning for long-term capital outlay was continued throughout the term of 42 the plan. Water and sewer operating funds have not been included at this time, but will be 43 included in the future for discussion. • 44