Agenda Packets - 2024/05/13 - Laserfiche WebLink

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Long -Term Financial Planning The City maintains a bond rating of AA, which was confirmed as part of financing upgrades to the water treatment processes and facilities, this continues to reflect the City's favorable financial position. This would provide a lower interest rate should the City desire to use long-term borrowing for future capital and infrastructure improvements. The greatest infrastructure need facing the City is the condition of its utility infrastructure. The City has made significant improvements to the water treatment system beginning in 2020 and running through 2023. Also, the City is preparing to replace the 27-year-old water meters in 2024. The City issued bonds to finance the improvements. The City completed a 10-year street improvement program in 2017 that rehabilitated 25.9 miles of streets. The City continues reconstruction of streets that were not part of the 10-year street improvement program. The next streets being considered for improvements are Bronson Drive, Pine Wood Circle, and Edgewood Drive. Future street reconstruction will be financed by a combination of different revenue sources: franchise taxes, Municipal State Aid, and a general property tax levy will serve as the main sources. Making street reconstruction affordable for citizens was a goal of the City. The City is developing a long-term street maintenance program to finance future street maintenance. State funding to cities has stabilized with the state reporting a surplus for the current biennium. The City Council and the City's staff will need to continue to make difficult choices in determining the manner in which to finance services provided to citizens. The City continues to work on redevelopment opportunities in other parts of the City that will enhance the tax base, increase job opportunities, and provide amenities desired by the residents. Relevant Financial Policies In past years, the state has reduced aid to local governments during economic downturns. The City's policy is to not anticipate full payment of future aid and will construct future budgets with reduced amounts of aid payments. Major Initiatives The major economic development initiative continues to be the upgrading of Mounds View Boulevard. The objective is to improve traffic flow and safety on the major corridor through the City's main commercial district. This is a multi -year project and achieving this should trigger new interest in development and redevelopment of commercial properties along the corridor. Along with this, the City continues its work related to rehabilitating road surfaces, improving storm water structures, and lining sewer pipes throughout the City. The City is working with a developer on a housing development known as Long Lake Woods that would add 12 to 14 buildable lots. The City is also researching wetland banking instead of a market rate townhome development in the Arden Park area. There are a few smaller commercial properties in the process of either a renovation or being acquired for a new business.