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HomeMy WebLinkAbout06/02/2008 Council MinutesAPPROVED •1 CITY OF LINO LAKES 2 MINUTES 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 S23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 046 DATE TIME STARTED TIME ENDED MEMBERS PRESENT MEMBERS ABSENT : June 2, 2008 . 5:30 p.m. . 10:02 p.m. : Councilmember Gallup, O'Donnell, Reinert and Mayor Bergeson : Councilmember Stoltz Staff members present: City Administrator, Gordon Heitke; Community Development Director, Mike Grochala; Director of Public Safety, Dave Pecchia; Finance Director, Al Rolek; Public Services Director, Rick DeGardner; Economic Development Coordinator, Mary Alice Divine; City Clerk, Julie Bartell 1. 2007 Audit Presentation — Finance Director Rolek introduced Brock Geyen of Larson, Allen, Weishair & Company, the city's auditor, to review the 2007 Audit Report. Mr. Geyen explained the audit process that includes a review of the city's financial transactions and reports for presentation and disclosure and a report on the city's legal compliance in financial areas. He reported that Lino Lakes finance staff has been very responsive and easy to work with during the audit process. It is the goal of the city to continue to receive the Certificate of Achievement for Excellence in Financial Reporting and the auditor feels that this year's report will meet that standard. A council member requested that the report be distributed with more front-end review time next year. The Comprehensive Annual Financial Report (CAFR) was reviewed. The only independent information provided by the auditor is the report beginning on page 9 that identifies their independent role. The Management's Discussion and Analysis is a useful summary of the data included in the document. Specifically, the General Fund balance is noted at $5,000,000+, representing 62% of expenditures for the year (reserve), considered to be a healthy level. Finance Director Rolek noted that fund balance is an important component in handling fluctuating revenue that can occur throughout the year. He pointed out the section of the document dealing with notes to the financial statements is a good review area that includes good background and history. He added that the city did end the year with a surplus over $40,000, even during a slow growth year. Mr. Geyen continued his review of other funds, totaling $3,000,000+, much of that being bond revenue from the Legacy at Woods Edge debt. The Water and Sewer Fund were also reviewed. Overall, Mr. Geyen, suggested that the auditors feel management is doing a good job in managing the finances of the city and the fund situation shows that. CITY COUNCIL WORK SESSION -2- June 2, 2008 APPROVED S47 48 Mr. Geyen then reviewed the Other Auditor Reports. Most of the comments are reoccurring; 49 noted were funds with a deficit (improvement shown in bringing some down), area and unit 50 charge fund reminder not to overextend, debt service review, and development escrow 51 accounting that have deficit balances (improvement shown by staff bringing accounts up to date). 52 The report also includes a clean legal compliance finding, other required auditor communications 53 and a report of new auditing standards. 54 55 A council member noted that this seems like one of the best audit reports that the city's received 56 and congratulations are due to Finance Director Rolek including his effort to bring forward the 57 issues of past audits and get the council to deal with it. 58 59 Mr. Geyen will be presenting the report at the upcoming city council meeting; the council 60 recommended that he present the information in the best form for citizen review and 61 comprehension. 62 2. Comprehensive Plan Update — Community Development Director Grochala explained 63 the history of the current comprehensive plan update process that has been underway for nearly 64 two years. (Also present was Ciara Schlichting of Bonestroo, consultant to the comprehensive 65 plan update project.) Basically, the process began with the 2006 community survey, that was 66 followed by a community visioning process that identified priority areas, and is currently 67 involving the comp plan advisory panel in establishing forecasts and drafting a staging and land 68 use plan. In reviewing the proposed forecasts relative to projected households and employment, • 69 Mr. Grochala noted that they are just estimates but they are reviewed by the Metropolitan 70 Council for their infrastructure investment planning. The forecasts do reflect a change with the 71 removal of the growth management policy that limited new development to a certain number (the 72 advisory panel is not proposing a city imposed cap). The 2030 Staging Plan that represents the 73 location and timing of sewered development was reviewed; the plan is based on the city's 74 sanitary sewer districts and infrastructure to insure future efficiency in growth and the plan has 75 been approved by the advisory panel. The land use plan, as presented, is based on the forecasts 76 and staging plans; it identifies that all property guided for development through 2030 will 77 develop but that is unlikely. Regarding the issue of growth manage, again the panel is not 78 choosing to pursue the 147 unit growth limit but as an alternative proposes to develop and 79 strengthen an overriding framework for growth management focused more on design and quality 80 rather than quantity. The comprehensive plan will represent the city's recommendations for the 81 future development of the community. The Lino Lakes plan will be unique in its inclusion of a 82 Resource Management Plan (RMP) in collaboration with the Rice Creek Watershed District. 83 The RMP will be an important element in the overall plan to deal with the elements of natural 84 resources and conservation design. The Plan will also guide changes to the city's official controls 85 (zoning, building etc. regulations) as well as engineering design standards. Consideration will be 86 given also to the City's Five Year Financial and Capital Improvement Plan as it relates to future 87 investment by the city. Mr. Grochala reviewed the future schedule for the process including 88 additional staff work followed by panel review and additional community input before the final 89 council consideration proposed for October. 90 The council requested that the plans reviewed this evening be provided to them in electronic 91 form. Also, any major changes, as staff reports back on these plans, should be clearly CITY COUNCIL WORK SESSION -3- June 2, 2008 APPROVED • 92 communicated to the council and public along with the reasoning. Residents that are impacted 93 by changes in planning should be kept informed (staff noted that their goal is to get the map into 94 every home in the city). 95 Three advisory panel members were present (Harvey Karth, Perry Laden, and Pat Huelman) and 96 expressed their confidence in the information being presented. They reported to the council that 97 it's been a good and thorough process. 98 3. Community Information Sign - Lions Club Donation - Public Service Director 99 DeGardner explained that the Lino Lakes Lions Club has offered to assist in funding a 100 community message board. Staff has evaluated seven possible locations as presented in his staff 101 report. The most significant obstacle is the city's regulations regarding signs that prohibit 102 placement of illuminated signs adjacent to residential property; a text amendment would 103 probably be required to allow a community sign but such an amendment could have other 104 repercussions. He has concerns about a placement of an electronic sign on any road with a 50 105 mph speed limit. 106 Lino Lion Richard Schumacher noted that the Lions have also identified the intersection of Lake 107 Drive and Town Center Drive (Option 3 in the report). Mr. DeGardner explained that there are 108 obstacles involved in that site also, possibly including the adjacent neighbor and a change in use 109 of the land. Aiii110 The council suggested that a text amendment that excludes commercial signs is a possibility. IP 111 There was discussion about the future of the Town Center district and the appropriateness of 112 having the sign near city hall once development is underway. 113 The mayor disclosed that he is a member of the Lino Lake Lions Club. 114 The council directed staff to continue to work with the Lions on the matter of placement of a 115 sign. Mr. Schumacher concurred that the Lions first choice would be Town Center Parkway and 116 Lake Drive and they are committed to speaking with the adjacent property owner(s) about the 117 idea. 118 Mr. Schumacher mentioned that at noon on June 14 (Flag Day), the Lions will be sponsoring a 119 special event with free food at the American Legion. 120 4. Preliminary Budget Guidance — Finance Director Rolek reported on plans for the 121 coming budget cycle. He noted the approval of levy limits by the state and that the city's budget 122 will have to be prepared within that new limitation. He is interested in council priorities and 123 parameters. Of course, one guideline will be the city's five-year plan but there are limitations 124 arising. 125 The mayor recalled that it's been a goal in past years to keep the tax rate flat and still provide the 126 same level of service. There has always been, in the past, increasing valuation and new growth. A127 What is the implication of that premise in the coming year's budget? CITY COUNCIL WORK SESSION -4- June 2, 2008 APPROVED �28 Finance Director Rolek replied that in consideration of property values increasing by 3.9 percent 29 (information from county assessor) and the 3.7 levy limit, it would fall somewhat close to the 130 same tax rate. Aside from that is what the city wants to accomplish in the way of goals and also 131 what other responsibilities will arise. 132 A council member recalled that the matter of in-house vs. contracted engineering services is a 133 question that remains from last year. The mayor recalled that the council concensus seemed to 134 be to look at it again in the future. Staff should come back sooner rather than later with analysis 135 on that. Another council member pointed out that growth is slow and that should impact the 136 five-year plan, employee growth as well as revenue estimates; a conservative approach is 137 warranted. 138 The fire district expense to the city is an area that should be reviewed regularly. Administrator 139 Heitke suggested that the council could review that group's funding formula at the next work 140 session. 141 Also a special budget work session is planned for August 18 if that works for the council. 142 5. Town Center Update Finance Director Rolek updated the council (verbal only). He 143 recalled that the council had recently received an update on the tax increment situation for Town 144 Center from Paul Steinman. Since that time, the taxes and specials were not paid by the bank 145 that foreclosed on the mortgage. Staff expects to meet with the owner to find out what the plans 146 are since it was understood that they would be paying the taxes. The outstanding assessment is 1,47 about $1,060,000 (representing one and a half years); altogether the amount due is in the area of 148 $1,500,000. There is an interest payment due on the public improvement special assessment and 149 the fund earmarked for that revenue is about $28,000 short. 150 When asked by the council about a worst case scenario, Finance Director Rolek suggested that if 151 the property were to go tax forfeit, the taxes as well as assessment could be lost. The city is 152 legally obligated to pay the debt service of $534,000 annually for the next thirteen years. 153 Contingency planning is appropriate and important at some point. There will be considerations 154 during the upcoming budget process. 155 A council member suggested that if the city needs to be proactive in this situation rather than 156 defensive, that shouldn't be ignored. It shouldn't come to the point of the city getting pushed to 157 do things with the property that are not appropriate and were never planned. 158 Finance Director Rolek reiterated that information gathering is a key element at this point. He 159 will be setting up a meeting (with Attorney Steve Bubul as city's counsel) as soon as possible. 160 The mayor suggested that the council receive updated information as soon as it's available. 161 6. R.O.W Management Ordinance - Public Services Director DeGardner noted that the 162 council discussed the possibility of a city right-of-way ordinance at the last work session. Based 163 on that discussion, he is presenting a proposed ordinance, drafted by Kennedy & Graven, for .1164 consideration. It includes a permit identification and requirement process, permit fees and 65 restoration issues. It requires mapping data and as -built drawing upon completion of the work CITY COUNCIL WORK SESSION -5- June 2, 2008 APPROVED 066 for city records. The fees, including degradation fees for road surface removal, are a revenue 167 source for the city's costs. This would bring all the utilities into a unified process, streamline the 168 process and establish the city's authority. It's really a standard in place already for most cities, 169 including recently by Circle Pines. This is a cost of doing business for the utilities that would be 170 passed along to their customers but not as a direct charge on bills. 171 The council concurred that the ordinance will be considered for first reading at the council 172 meeting on June 9. 173 7. Xcel Electricity, Gas Franchise Agreement — Administrator Heitke recalled that the 174 council was advised at the last work session that the city's franchise agreement with Xcel Energy 175 is expiring in June. The council gave a direction that when new franchise agreements are drafted 176 they should include the ability to establish franchise fees. Administrator Heitke is providing 177 draft gas and electric franchise ordinances as prepared by Attorney James Strommen of Kennedy 178 and Graven. The attachment to the report is a marked up copy of a proposed new Xcel 179 agreement; the changes provide more clarity, especially in the rights of the city. The franchise 180 fee language is included on Page 7, with three different methodologies presented to preserve 181 maximum flexibility for the city. It does provide the possibility of engaging fees on all utility 182 providers. 183 When discussing the specifics of the current arrangement with Centennial Utilities, the council 184 decided to ask the city's representative to that group, Vernon Reinert, to attend the next work mil 85 session so as to participate in this discussion and provide background information. The council W 86 is very interested in the impact on that particular utility that already has a fee in place. It may 187 make sense to not have a specific fee set forth to leave it open for the different utility situations, 188 or not make it an across the board amount. 189 The council directed staff to get an attorney review of their questions and report back at the next 190 regular work session. Administrator Heitke noted that the attorney has advised that there is time 191 to work on the matter and the renewal of the outstanding Xcel agreement can be delayed 192 somewhat. 193 8. Amendment to Liquor Ordinance - Administrator Heitke recalled that the council 194 expressed a desire to review the current liquor ordinance. 195 The council discussed the possibility of developing regulations that don't have things 196 congregating in a two block radius. More review is required and a moratorium on licenses 197 would allow that. 198 The council directed staff to prepare a moratorium ordinance restricting issuance of off -sale for 199 six months. 200 Legal basis for a moratorium is that you're redoing your ordinance. 201 9. Review of Regular Meeting Agenda •02 There were no changes to the regular council agenda. 003 04 205 206 June 23, 2008. 207 208 209 210 211 21 CITY COUNCIL WORK SESSION -6- June 2, 2008 APPROVED The meeting was adjourned at 10:02 p.m. These minutes were considered, corrected and approved at the regular Council meeting held on 213 214 215 • e Bartell, Cit Cler 45171(7 Be eson, Mayor