HomeMy WebLinkAbout09-28-2015 Council Work Session Minutes CITY COUNCIL WORK SESSION September 28 , 2015
APPROVED
1 CITY OF LINO LAKES
2 MINUTES
3
4 DATE September 28 , 2015
5 TIME STARTED 5 : 10 P . M .
6 TIME ENDED 6 : 20 p . m .
7 MEMBERS PRESENT Council Member Stoesz , Kusterman ,
8 Rafferty , Roeser and Mayor Reinert
9 MEMBERS ABSENT None
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11
12 Staff members present : City Administrator Jeff Karlson ; Community Development
13 Director Michael Grochala ; Finance Director Sarah Cotton ; Public Services Director Rick
14 DeGardner ; Public Safety Director John Swenson ; Environmental Coordinator Marty
15 Asleson ; City Clerk Julie Bartell
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17 1 . 2016 Preliminary Budget Review — Updated budget and gap analysis
18 information was distributed .
19
20 Council Member Roeser noted that he had spoken with the Anoka County Assessor ' s
21 Office and he learned that the market value increase that they forwarded for payable 2015
22 taxes was actually larger than needed and therefore the next year (payable 2016 ) becomes
23 a correction situation . The following year should show an average increase in market
24 value , probably in the area of three to six percent . In addition there will be new homes
25 and businesses that will show up on the tax rolls by then . Those are considerations for
26 looking ahead to the 2017 budget . He also discussed the city ' s Closed Bond Fund ( CBF )
27 and noted that it is made up of funds from debt service that is fully satisfied . He noted
28 that the fund has accumulated a balance because debt service accounts were funded at a
29 level of 105 % and interest was paid to the account in some situations . The Legacy fund is
30 actually the opposite situation where the city has paid the debt service but not been paid
31 back ; taking from CBF could be seen as a repayment for that also . The council should
32 establish a policy on use of the funds . Community Development Director Grochala
33 explained , regarding repayment of the Legacy bonds debt that the tax increment from the
34 district and facilities lease revenue is covering that cost now and ultimately it should be
35 paid back by land proceeds . Council Member Roeser suggested that the city doesn ' t
36 want to sit on the ( closed bond) funds because they can lose value ; the money should be
37 returned to the taxpayers .
38
39 Mayor Reinert noted that the city is looking at a spike in the budget right now and in
40 government that ' s not a good thing and it ' s better to round it off. He recommends that
41 the council have an overall discussion about the CBF . He sees it as a surplus and it
42 should be given back to the taxpayers by lowering taxes . Administrator Karlson noted
43 that the bonds are a reserve . Council Member Kusterman suggested that the funds ( in the
44 CBF ) are both surplus and reserve — they are reserves until they aren ' t needed as such and
45 then they become surplus .
1
CITY COUNCIL WORK SESSION September 28 , 2015
APPROVED
46
47 Council Member Kusterman asked , since the CBF is used to fund projects before bonds
48 are available , couldn ' t the city just borrow from its reserve in the same manner `?
49 Administrator Karlson noted that the city needs to maintain the reserve at a certain level
50 ( 50 % ) , and he added that it is possible to borrow from other city funds and in fact that is
51 already occurring .
52
53 Mayor Reinert addressed the city ' s fund reserve . The level of that reserve has gone up at
54 points and this council has made an effort to keep it at a reasonable level . There was a
55 discussion about the need to keep a 50 % level because the city needs cash on hand to pay
56 bills between receipt of tax revenue . Mayor Reinert noted that the city will also be
57 looking at getting a better return on investment of the reserve funds , as they are now
58 doing in Anoka County .
59
60 The council discussed the preliminary tax capacity rate . The mayor said his goal is
61 45 . 9 % and he feels the council has three months (before the final budget is approved ) to
62 work the budget to that level . He believes there are more dollars to be found . Council
63 Member Kusterman said he is interested in seeing more projections looking ahead .
64 Mayor Reinert noted that the 2017 estimate is not a real number since the council will be
65 making many decisions ; it ' s a worst case scenario that shouldn ' t be included in the
66 analysis . Council Member Roeser reviewed information he obtained from the Finance
67 Director relative to bonds that will be paid off and when ; he added that it is real
68 information . Council Member Rafferty discounted the 2017 numbers ; they are really a
69 false negative because they deal with matters not yet under discussion by the council .
70 Council Member Stoesz remarked that the option of 45 . 9 percent includes all the
71 necessary core services that the city needs . Council Member Roeser noted that the
72 figures do change significantly when you remove the voter approved levy funds .
73
74 The council concurred that the preliminary levy will be based on Option C of the analysis
75 and acknowledged that there is more work to be done before the final budget is approved .
76
77 2 . Review Regular Agenda of September 28 , 2015 . The council reviewed the
78 agenda items . A representative of Anoka County Parks gave a PowerPoint presentation
79 on the Bunker Chain of Lakes Regional Trail .
80
81 The meeting was adjourned at 6 : 20 p . m .
82
83 These minutes were considered , corrected and approved at the regular Council meeting held on
84 October 12 , 2015 .
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86
87 >'
88
89 Julian re Bartell , CitClerk Jeff einert , Mayor
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