HomeMy WebLinkAbout06/13/2006 Council Minutes (2)•
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COUNCIL FINANCIAL RETREAT JUNE 13, 2006
APPROVED
1 CITY OF LINO LAKES
2 MINUTES
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4 DATE : June 13, 2006
5 TIME STARTED : 5:30 p.m.
6 TIME ENDED : 7:20 p.m.
7 MEMBERS PRESENT : Council Members Carlson, O'Donnell,
8 Reinert, Stoltz and Mayor Bergeson
9 MEMBERS ABSENT : None
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12 Staff members present: City Administrator, Gordon Heitke; Finance Director, Al Rolek;
13 Community Development Director, Mike Grochala; Public Services Director, Rick
14 DeGardner; Chief of Police, Dave Pecchia; and City Clerk, Julie Bartell
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17 Finance Director Rolek stated that as presented at the last City Council meeting, the
18 City's 2005 Annual Financial Report indicated the City is in good standing financially.
19 However, there are some issues that could weaken that position in the next several years.
20 Staff would like to show those specific areas of possible weakness this evening.
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22 Mr. Nick Dragisich, Springsted, came forward and presented a power point presentation
23 advising the objective is to identify potential financial problems areas, identify underlying
24 factors or policies that may have led or may lead to problems and suggest possible
25 solutions.
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27 Mr. Dragisich reviewed the General Fund historical performance and projections, as well
28 as the General Fund recommendations. He also noted the City's financial risks including
29 the Super Rink, YMCA and Blue Heron Days. He noted the City should quantify
30 exposure and develop and quantify financial options in terms of those financial risks.
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32 Mr. Dragisich provided the history of the Area and Unit Fund noting the balance of that
33 fund has declined. He indicated that trend would continue throughout the next five years.
34 Future special assessment funds will bring the balance up but it is uncertain when those
35 funds will be received. He also reviewed the Facilities Replacement and Maintenance
36 recommendations.
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38 Mr. Dragisich provided an overview of the Pavement Management Plan noting the
39 number of roads within the City needing reconstruction outside of the Pavement
40 Management Plan would continue to rise. He also reviewed a Comparison of Financial
41 Alternative including property tax levy and annual maintenance levy.
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43 Finance Director Rolek reviewed the Storm Water Management Fund balance, revenue
44 and expenditures. He noted the balance of this fund has dropped since 2003 and future
45 expenditures will exceed revenue slightly. Small maintenance projects have been a big
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1 COUNCIL FINANCIAL RETREAT JUNE 13, 2006
APPROVED
46 draw on this fund. He recommended a review of appropriate fund use, fee structure and
47 revenue stream.
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49 Finance Director Rolek also reviewed the Sewer Assessment Chart (SAC) Revolving
50 Fund including the SAC Refund amount and potential SAC Liability. He indicated this
51 fund involves funds that had been collected for access that did not occur and were
52 eventually turned back to the City from the Metropolitan Council. The City has a
53 growing gap between the funds collected and potential liability. Refunds to properties
54 could wipe out the future liability involving approximately 800 properties.
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56 Finance Director Rolek advised the Dedication Parks Fund is a deficit account directly
57 related to land acquisition for the recreation facility, a project not funded by referendum.
58 The Auditor has recommended that the City deal with the deficit through a permanent
59 transfer of funds, repayment plan or disposal of the property.
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61 After much discussion by the Council, the Council offered the following options for
62 action:
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64 1. A comprehensive plan with staff recommendations to deal with all financial
65 issues.
66 2. Deal with each issue on an individual basis with a financial, public relations,
67 and political viewpoint.
68 3. Deal with more immediate issues now and work on solutions for longer-term
69 issues such as road reconstruction and facilities replacement.
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71 The Council also discussed the following suggestions for action:
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73 1. Comprehensively determine items that must be dealt with and schedule an
74 hour each work session to devote to that issue until a plan is in place
75 working up to the 2007 budget process.
76 2. Staff develops and presents recommendations for policy decisions for
77 Council consideration and action.
78 3. Council indicated the first issues to address should be the Dedicated Park
79 Fund and SAC Revolving Fund.
80 4. Council must also consider future needs such as infrastructure, and future
81 revenues such as projects coming in.
82 5. Finance Director Rolek will work with the City consultants to prioritize
83 issues and report back to the Council. A tentative budget calendar should
84 be included.
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86 It was also determined that another date will be set for an additional Financial Retreat to
87 set up work session discussions. Staff indicated they would be prepared for the second
88 retreat in mid July.
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90 The meeting was adjourned at 7:20 p.m.
COUNCIL FINANCIAL RETREAT
APPROVED
JUNE 13, 2006
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92 These minutes were considered, corrected and approved at the regular Council meeting held on
93 July 10, 2006.
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98 le k, Juliann- Bartell JKhn B = geso , ayor
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100 Transcribed by:
101 Kim Points
102 TimeSaver Off Site Secretarial, Inc.
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