01/14/2008 Council Minutes - Laserfiche WebLink

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COUNCIL MINUTES January 14, 2008 APPROVED 047 3080), $48,532.94 Approved 48 49 Resolution No. 08-02, Accepting Bids and Awarding 50 Farmland Lease Agreement Approved 51 52 Resolution No. 08-06, Anoka County Agreement for 53 Residential Recycling Program Approved 54 55 Resolution No. 08-09, Authorizing the Issuance of Approved 56 2008 Certificates of Indebtedness 57 58 FINANCE DEPARTMENT REPORT, AL ROLEK 59 60 Five -Year Financial Plan Public Hearing — Finance Director Rolek noted that it is good 61 financial policy and planning to adopt a long-term financial plan and the city is required to do so 62 by the City Charter. A five year plan was approved last year. That document has been updated 63 to another year out and has been under review by the council. A PowerPoint summary of the 64 plan was presented. Mr. Rolek stressed that the plan is a working document and does not 65 authorize spending. Staff will utilize the information in the Plan in the preparation process for 66 the annual budget. Staff is not asking for action this evening but seeks public comment only; 67 the document will be back before the council at the next meeting for further consideration. 68 •69 When asked how the sealcoating and overlay projects are selected, Finance Director Rolek 70 explained that the city currently has $385,000 earmarked for those improvements, to be 71 increased by 5% per year. The sealcoating is a revolving process, taking an area of streets and 72 redoing them every 5-6 years. 73 74 City Engineer Studenski explained that the City's Pavement Management Plan rates the city's 75 streets. Rating for sealcoating is included. When a roadway reaches an age when sealcoating is 76 no longer feasible, overlay is recommended. The usable life of the street is extended 77 substantially by the program. 78 79 When asked to explain the status of the bond rating, Finance Director Rolek noted that the City 80 has been fortunate to be upgraded several times over the past few years. The current Moody's 81 rating is AA3. The ratings are based on the city' credit worthiness and an upgrade improves the 82 cities finance cost situation. 83 84 When asked how the town square development appears in the Five Year Plan, Finance Director 85 Rolek explained that the Town Center project has slowed as have construction projects 86 nationwide. Staff continues to look to tax increment from the development to help finance 87 certain projects including the Lake Drive/I35 Interchange project as well as the city's 88 contribution to the YMCA project. Once those obligations are met, the value of the increment 89 will benefit the city's general fund. 90 dr91 Mayor Bergeson opened the public hearing at 7:15 p.m. 2 2