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Home My WebLink About05/10/2000 Council MinutesCOUNCIL FINANCE WORK SESSION MAY 10, 2000 SPECIAL COUNCIL MEETING MINUTES DATE : May 10, 2000 TIME STARTED : 5:30 p.m. TIME ENDED : 7:40 p.m. MEMBERS PRESENT : Council Members Carlson, Dahl, O'Donnell, Reinert, and Mayor Bergeson MEMBERS ABSENT : None Staff Members Present: City Administrator, Linda Waite Smith; Administration Director, Dan Tesch; Community Development Director, Brian Wessel; City Engineer, John Powell (part); Public Services Director, Rick DeGardner; Finance D. ` ; Al Rolek; and Chief of Police, Dave Pecchia UPDATE ON CITY COUNCIL WORK SESSION Mayor Bergeson advised he will not be present , 2 t 10, Council work session. He suggested Council continue with tie B. ,,• in iews. He stated he will review the audiotape of the meeting so ding appointments can be made by May 22, 2000. RECAP OF 1999 BUDGE Preliminary Gene handout relating t preliminary. The i more detailed analy — Mr. Al Rolek, Finance Director, distributed a eneral Fund Budget Recap. He noted the figures are n provides an overview of the City's budget. He added a is available. Mr. Rolek reviewed the information in detail noting the excess revenues over expenditures appear to be $4,688. Because the figures are preliminary, the final amount may be different. Factors Impacting on Results, Linda Waite Smith — Ms. Waite Smith, City Administrator, advised Council that the City typically has a larger amount of excess revenue. That amount is smaller this year due to extra expenses that were absorbed by the operating budget. STATUS OF GENERAL FUND BALANCEP'EXCESS REVENUES" Possible Future Policy Changes — Resolution No. 91— 03 — Mr. Rolek distributed a handout relating to the 1999 Excess Revenue Computation. He reviewed the information 1 COUNCIL FINANCE WORK SESSION MAY 10, 2000 in detail noting the total required reserve for cash flow requirement, per Resolution No. 91— 03, is $2,878,954 or 50% of the General Fund. Preliminary calculations indicate a reserve of $2,826,877. Mr. Rolek advised the Council might want to change the reserve policy. He suggested the policy include a reserve range. Ms. Waite Smith noted the City also has money in other funds, which are generally dedicated for purposes other than general operations. REVIEW LEGAL DEBT LIMIT REQUIREMENTS Mr. Rolek distributed information regarding the Computation of Legal Debt Margin. He reviewed the information in detail noting the debt limit is 2% of the City's market value. He added that the information compared 1999/2000 to 1998/1999. The City's current debt load amounts to a small fraction of the allowable amount. Staff gave examples of each of the following types of bonds: c = 7 Proprietary Bonds, Public Project Revenue Bonds. FUTURE CAPITAL IMPROVEMENT NEEDS, L Mr. John Powell, City Engineer, distributed a Program Summary. The handout liste the year 2000 and 2001. PROVING FOR FUTU ment Bonds, Preliminary Capital Improvement of projects and funding sources for QUISITION/REPLACEMENT NEEDS Consider Establi advised that typic equipment for future revolving fund in pl. `- . Indebtedness bond to cover major capital needs. ving Funds for Major Capital Needs — Mr. Rolek e a mechanism in place to fund the replacement of Currently, the City of Lino Lakes does not have this type of It has been the City's practice each year to issue a Certificate of Mr. Rolek stated a revolving fund allows money to be available when it is needed. He suggested Council explore the possibility of establishing revolving funds. Presently, it is a good time to establish such a fund because of the expanding tax base and the possibility of levy limits being eliminated. Park and Trail Development/Renovation — Effect on Park Dedication Fees due to Preservation -Style Development, Rick DeGardner — Mr. Rick DeGardner, Public Services Director, stated that historically park development has relied on park dedication fees. If the City continues this practice, the City needs to recognize that there will be less and less dollars due to preservation -style development for park development. Residents need to be aware that there will not be money to develop parks. Another issue is the 2 COUNCIL FINANCE WORK SESSION MAY 10, 2000 maintenance of parks. He asked that Council Members keep this in mind when going through the budget process. Mr. DeGardner noted that slower development and preservation development will result in fewer park dollars also. Mr. Brian Wessel, Community Development Director, stated the policy on park dedication fees should be revisited as it relates to commercial and industrial development. Council Member Carlson stated the City should also revisit the amount of park dedication required by residential development. Mr. DeGardner added that he is meeting with the City Planner and Mr. Brixius to discuss this issue. 2000 Budget for Park Capital Outlay - $50,000 — Mr. DeGardner referred to the development of the Mallard Lane trail. He stated that $50,000 has the project in the 2000 budget. Also, in past years part of the e been designated for Mallard Lane. He asked for direction f these dollars. If Council wants to pursue the trail, an ad needed. If the trail is not pursued, the dollars can b needs. Council Member O'Donnell advised t Trail. He suggested staff revisit t the entire Homeowner's Asso Mayor Bergeson noted the previous Coun opinion, the City n ignated for ance has regarding - $25,000 is park development eowner at the end of Black Duck he new homeowner and then meet with oped to receive a grant for part of the project when o designate the $50,000 to the trail. He advised that in his the grant could nullify the support for the trail Council directed st. `` ` o contact the new homeowner regarding this issue. DESIGNATION OF ANTENNA LEASE REVENUE Presently Allocated to Capital Improvement Fund — Mr. Rolek advised that the City is receiving approximately $68,000 in antenna lease revenue in 2000 that will increase to approximately $80,000 in 2000. The funds are currently going into the Capital Improvement Fund to build a public works storage building. The storage building is now complete and the dollars are available for other projects. Use of Balance to Finance Items Cut from 2000 Budget Ms. Waite Smith reviewed the following list of the 2000 expenditures that were cut from the budget or have surfaced since the budget was adopted: 3 COUNCIL FINANCE WORK SESSION MAY 10, 2000 Emergency Generator for Fire Department Access/Monitoring System for both Water Towers 1/i of Salary Adjustments Technology Improvements Software Licensing $ 16,000 Internet Access $ 2,800 Internet/E-mail Server $ 5,000 Web Server $ 5,000 Printers $ 2,000 Full Text Search — 5 Stations $ 2,350 Paging System for Police $ 5,325 Paging System for City Hall $ 5,250 VCR Automated Playback System $ 3,700 Monitors for Community Room $ 2,000 $ 18,000 $ 12,000 $ 38,000 $ 49,425 Total Recommended Expenditures $118,025 Ms. Waite Smith recommended Council designate the lease re implement the above items. Designate Remaining Balance and 2001 Revenue et — Ms. Waite Smith advised the projected lease revenues for 2001 • se revenue will increase a minimum of 5% each year to the amount of $ 20 1 5. Ms. Waite Smith reviewed the fol eyond Possible Projects/Equipment for the antenna lease revenue: Vehicles/Capit • .. Parks/Trails Improvements Public Wo Road Reconstruction Public Wo i = 't Technology Water Towe e mg/Painting Salt Storage Shed Council directed staff to put this item on the regular Council work session agenda Wednesday, May 17, 2000. Mayor Bergeson stated the future lease antenna funds should be designated to a specific project. TIF PENALTY — CURRENT/FUTURE IMPACT ON LGA/HACA Mr. Rolek reviewed a 1998 letter from Ehlers & Associates, Inc., regarding Tax Increment Financing Overview Mitigating the LGA/HACA Penalty. He advised that more detailed information is available to Council Members. 4 COUNCIL FINANCE WORK SESSION MAY 10, 2000 Ms. Waite Smith requested Council direction regarding a special work session to address this issue. Council determined this issue can be added to .a regular work session agenda. COUNCIL GUIDELINES FOR PREPARING 2001 BUDGET Calendar — Mr. Rolek reviewed the 2001 Budget Preparation Calendar noting a Council/staff budget work session has been scheduled on August 17, 2000. Ms. Waite Smith advised each Department will address the Council regarding their budget needs at the work session. Mayor Bergeson noted that some departments did not get feedback from Council during the Council's May 6 goal setting session. That is not because those departments are unimportant but because Council Members could choose only their tothree priorities. Service Levels — Mr. Rolek noted that Council has an opportu for staff to follow as they prepare the 2001 budget: A dete regarding maintaining the service levels and priorities. when considering the budget. h guidelines e made ould be addressed Levy Assumptions — Mr. Rolek stated guidel :!;`- the Council regarding the tax rate will also be needed when considering Priorities for Determining T typically, there are more r, for balancing the budge ancing the Budget — Mr. Rolek stated that the is money. Council must determine priorities There being no fu s to discuss regarding this issue, the meeting was adjourned at 7:40 p. These minutes were considered, corrected and approved at the regular Council meeting held on May 22, 2000. Ry- hel Gaustad, City Clerk Transcribed by: Kim Points TimeSaver Off Site Secretarial, Inc. 5 Joh ergeson, Mayor