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CITY OF ST. ANTHONY CITY COUNCIL WORKSESSION City Council Chambers October 5, 2010 5:30 p.m. Work Session Meeting Minutes Present: Council: Jerry Faust, Mayor; Jan Jenson, Councilmember; Randy Stille, Councilmember; and Jim Roth, Councilmember. Staff: Mike Morrison, City Manager, Kim Moore - Sykes, Assistant City Manager; John Malenick, Fire Chief, Roger Larson, Finance Director; Mike Larson, Liquor Operations Manager; John Ohl, Police Chief, Jay Hartman, Public Works Director. Also Present: None Absent: Hal Gray, Councilmember Call to Order. Meeting called to order by Mayor Faust at 5:35 pm. 1. 5 -Year Capital Equipment Plan. The Mayor opened the meeting and introduced the 5- year Capital Equipment Plan as the first issue for discussion. The City Manager reviewed the budget schedule for the 2011 budget. He reported that the Department Heads have been meeting together since the last work session, working to present a balanced capital equipment budget for 2011. City Manager Momson advised Council that the proposed 2011 Capital Equipment Budget is $330,400 for 2011, with revenue coming from the liquor store profits, MSA revolving funds and interest from the water filtration account. Each department has agreed to a portion of the $330,400 for their department's capital equipment needs for 2011. Discussion regarding the restructuring of funding options for large ticket items. Finance Director Larson reported that a funding gap still remains for years 2012 through 2015 The Mayor asked if the allocations were based on the department's size. Finance Director Larson indicated it was based on each department's need. Larson discussed three options for funding of this gap as requested by the City Council at the last work session meeting. Larson reported that the first option uses the annual capital equipment funding for issuing debt, which he reported amounts to a 5 -year equipment certificate. City Manager Mornson indicated that the drawbacks to this option are that the City would have to pay interest expense and the cost of issuance, which would reduce the City's purchasing power. Option #2 looked at the impact of issuing a 5 -year equipment certificate to fund the purchase of a new fire truck. Council also was advised of the net loss in purchasing power due to the cost of issuing the certificate and interest costs. Option #3 means that Staff would continue to work with an annual allocation of $313,200 and continue to defer larger capital equipment purchases. F: \Minutes\2010 \Counci1 Staff worksession 10052010.doc -W