08/09/2006 Council Minutes - Laserfiche WebLink

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COUNCIL FINANCIAL RETREAT AUGUST 9, 2006 APPROVED CITY OF LINO LAKES MINUTES DATE : August 9, 2006 TIME STARTED : 6:04 p.m. TIME ENDED : 9:03 p.m. MEMBERS PRESENT : Council Members Carlson, O'Donnell, Reinert (6:04), Stoltz (6:43) and Mayor Bergeson MEMBERS ABSENT : None Staff members present: City Administrator, Gordon Heitke; Finance Director, Al Rolek; Community Development Director, Mike Grochala; and Terri Heaton, Springsted City Administrator Heitke stated the Council should determine if any of the staff recommendations for the long-term issues would be included in the 2007 budget process. Staff also needs to continue work on the Five Year Plan and some of the financial issues would be included in the completion of that plan. Staff is requesting direction regarding several of the City's funds. Finance Director Rolek reviewed the status of the General Fund and indicated finance strategies are important for this fund. This is the fund that is most focused upon during the budget cycle; it is the fund that the City is most aware of and that has the most direct tax impact. Staff recommendation is to monitor the General Fund for possible weaknesses in the future and to employ the consultant's recommendations as needed to curtail any unfavorable affects. The Council indicated they are comfortable with the staff recommendation and directed staff to set up reserves within the General Fund for possible future liabilities. It was noted that setting up reserves will not affect the overall budget and will possibly improve the City's rating. The Council also directed staff to inquire about a time frame when ice time is sold for the Super Rink. Staff will also bring back recommended policies regarding borrowing from other funds and repayment of those loans. Finance Director Rolek referred to the Facilities Replacement and Maintenance Fund noting the major source flowing into this fund is from the antenna lease revenues - about $105,000 — 110,000 per year. Staff recommends these funds be dedicated to the maintenance and repair and the eventual replacement of City building facilities. This amount can be supplemented with tax revenues in future years. The Council concurred with the staff recommendation regarding the Facilities Replacement and Maintenance Fund. •