HomeMy WebLinkAbout08-27-2018 Council Budget Work Session MinutesCITY COUNCIL WORK SESSION
August 27, 2018
APPROVED
1 CITY "r LINO LAKES
2 MINUTES
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4 DATE August 27, 2018
5 TIME STARTED 7:05 p.m.
6 TIME ENDED 7:50 p.m.
7 MEMBERS PRESENT Council Member Rafferty, Maher,
8 Manthey, Stoesz and Mayor Reinert
9 MEMBERS ABSENT None
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11 Staff members present: City Administrator Jeff Karlson; Public Safety Director John
12 Swenson; Community Development Director Michael Grochala; Finance Director Sarah
13 Cotton; Public Services Director Rick DeGardner; City Clerk Julie Bartell
14 1. 2019 Draft Budget &Tax Levy
15 Mayor Reinert remarked that he would like to discuss surplus anticipated for this year and
16 also areas that have increased in budget.
17 Finance Director Cotton reviewed the information provided in the packet:
18 - Updated gap analysis;
19 - Updated net tax capacity calculation;
20 - Use of Reserves Summary.
21 Council Member Stoesz asked why the street patching budget was not fully utilized and
22 Mr. DeGardner explained that the weather/length of patching season dictates the amount
23 of work that can be done.
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25 The council discussed the city's reserve level, including why it is at a conservative 50%
26 and its impact on the city's bond rating.
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28 Mayor Reinert discussed planning for the recreation land; he'd like to explore a master
29 plan for the area. Public Services Director DeGardner said he is working on a phased
30 plan. Mayor Reinert asked about necessary funding to get something moving next year
31 and Director DeGardner said he is working with the Finance Director on a large picture
32 financing plan. It was recalled that development of a third water tower may be a part of
33 the larger picture and financing.
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35 Council members were asked to weigh in on the recreation project:
36 Council Member Rafferty — is ready to make it work.
37 Council Member Manthey — sees two ways to move forward: a spur project to get things
38 going or make a big plan all at once. He is supportive of the direction now and will await
39 more information on financing.
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CITY COUNCIL WORK SESSION
August 27, 2018
APPROVED
40 Council Member Stoesz recommends letting the public know that is the land is city and
41 plans are coming. Also it will be important for people to understand financing.
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43 Mayor Reinert said he'd like to see $300,000 set aside (reserve) at this time. Moving
44 ahead, additional financing will become clear.
45
46 Mayor Reinert said he'd also like to designate $50,000 of the reserve for a war memorial
47 project. He would like to see that those funds are not utilized until they are privately
48 matched. Council Member Maher is supportive.
49
50 The remaining reserve amount was identified at $400,000. If that amount were applied
51 overall, the tax rate would be 41.724 (3.70% annual increase). Ms. Cotton noted that the
52 council may also want to consider that debt levy that will be coming on line.
53
54 Mayor Reinert asked if any projects will come off the books next year that will contribute
55 to the Closed Bond Fund. Director Cotton noted that the City Hall Complex has been
56 fully paid; there will be excess of about $500,000.
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58 Mayor Reinert suggested one more meeting to do a final review. He asked that council
59 members do their final drill down on the proposed budget so that discussion be
60 concluded. The council will plan on having that final discussion at the regular
61 September work session unless that runs late in which case they will set another day.
62
63 Council Member Stoesz asked that the preliminary budget be placed on the city website
64 in a spot that is easy for public access.
65
66 The council will review information presented for future discussion.
67
68 The meeting was adjourned at 7:50 p.m.
69
70 These minutes were considered, corrected and approved at the regular Council meeting
71 held on August 27, 2018.
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76 Ju�anie Bartell, City�Clerk —"
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