HomeMy WebLinkAboutCC MINUTES 05142002 Meeting Sheet
IIIIIIVIIIVIIIVIIIVIIIVIIIIIIIIIII
105487
Box: 34
Folder: CC MINUTES AND AGENDAS 2002
Document: CC MINUTES 05142002
CITY OF ST. ANTHONY
3 CITY COUNCIL REGULAR MEETING MINUTES
4
5 May 14, 2002
6
7 CALL TO ORDER
8 Mayor Hodson called the meeting to order at 7:00 p.m.
9
10 PLEDGE OF ALLEGIANCE.
11 Mayor Hodson invited the Council and audience to join him in the Pledge of Allegiance.
12
13 ROLL CALL.
14 Present: Mayor Hodson; Councilmembers Horst, Sparks and Faust.
15 Absent: Councilmember Thuesen.
16 Also Present: City Manager Mike Morrison; City Attorney Jerry Gilligan.
17
18 CONSIDERATION,DISCUSSION, AND POSSIBLE ACTION ON ALL OF THE FOLLOWING
19 ITEMS.
20
21 I. APPROVAL OF MAY 14, 2002 CITY COUNCIL MEETING AGENDA.
22 Motion by Councilmember Sparks, second by Councilmember Faust, to approve the City
23 Council Meeting Agenda of May 14, 2002.
9 Motion carried unanimously.
26
27 II. PROCLAMATIONS AND RECOGNITIONS.
28 None.
29
30 III. COMMUNITY FORUM.
31 Mayor Hodson invited residents to come forward at this time and address the Council on items
32 that are not on the regular agenda.
33
34 Hearing none, Mayor Hodson moved forward with the agenda.
35
36 IV. CONSENT AGENDA.
37 1. Consider April 23, 2002 Council meeting minutes.
38 2. Consider licenses and permits.
39 3. Consider payment of claims.
40 4. Resolution 02-043, re: Fund transfer.
41
42 Motion by Councilmember Faust, second by Councilmember Sparks, to approve the Consent
43 Agenda.
44
45 Motion carried unanimously.
•
City Council Regular Meeting Minutes
May 14, 2002
Page 2
V. PUBLIC HEARINGS.
2 A. Resolution 02-044, re: Refundin housing and revenue bonds for Autumn Woods.
3 Gilligan indicated that these bonds were issued in 1992 to refinance prior bonds issued by
4 the City to finance the acquisition and construction of Autumn Woods apartments. He
5 indicated that the refunding bonds are proposed to be issued in the principal amount of
6 $7,775,000,which is the outstanding amount, and would bear interest at a variable rate.
7 Would like to refund in order to pay off the bonds. He concluded that the city would
8 have no liability with respect to the refunding bonds.
9
10 Mayor Hodson asked if this was a typical procedure? Gilligan indicated that it was a
11 fairly routine procedure, but that you do not see as many because the requirements are
12 more stringent.
13
14 Mayor Hodson opened the public hearing at 7:04 p.m.
15
16 Paul Brewer, Autumn Woods, came forward to address any questions regarding the
17 refinancing by the Council. He indicated Autumn Woods was built about 15 years ago
18 with Tax Increment Funds, and that they could capture lower interest rates now on the
19 bonds. He concluded that he appreciates the city's support for the project.
20
21 Mayor Hodson closed the public hearing at 7:06 p.m.
0 Motion by Councilmember Sparks, second by Councilmember Faust, to adopt Resolution
24 02-044, re: Refunding of housing and revenue bonds for Autumn Woods.
25
26 Motion carried unanimously,
27
28 VI. REPORTS FROM COMMISSIONS AND STAFF.
29 A. Discussion of Community Prevention Coalition. Bob Foster will be present.
30 Bob Foster came forward to provide an update on what he called an evolving process in
31 St. Anthony Village.
32
33 Foster stated that the mission of the Community Prevention Coalition (CPC) is joining
34 together to create an environment that encourages safe and drug-free lives for youth.
35
36 Foster added that the objectives of the CPC are: to initiate, coordinate, facilitate, support
37 and enhance programs, activities and services that combat substance abuse and violence
38 among youth and families; mobilize all elements of the community including parents,
39 schools, churches, city government, law enforcement, civic groups, businesses and social
40 agencies in accomplishing our mission.
41
42 Foster indicated that that both CPC and ACTION (Adults And Children Together In Our
43 Neighborhoods)bring together schools, civic organizations, faith-based groups and
community members from School District 282 and the St. Anthony Village/New
Brighton area to plan and undertake activities that improve the lives of all residents.
46
47 Foster stated that when Bob Duncan became head of the new school district, he wondered
48 why the neighboring towns were not working collaboratively.
City Council Regular Meeting Minutes
May 14, 2002
Page 3
0
2 Foster indicated that their desire was to form a collaborative organization with the City of
3 New Brighton. He indicated that a collaborative effort would serve as a vehicle whereby
4 the city could get state funds through the county, as well as funding from St. Anthony.
5
6 Foster explained how the process would work, if they formed a collaborative
7 organization.
8
9 Foster stated that he was not asking the Council for money today, but would be back in
10 the near future to do so.
11
12 Councilmember Horst asked how many other cities are involved in a collaborative effort.
13 Foster indicated that almost all other cities operate collaboratively; Duncan indicated that
14 the City of St. Anthony would be one of the last.
15
16 Mayor Hodson asked what the different funding sources are, so that as they proceed, they
17 are informed. He added that he believes in the program, as it affects the entire
18 community, and that he would like to be able to clearly inform the residents with what
19 they are doing with their dollars.
20
21 Councilmember Faust confirmed that the collaborative effort was, essentially, to get more
bang for the buck. Mayor Hodson added that it was also for the purpose of attaining
16 additional dollars.
24
25 Councilmember Horst asked where the city comes into play in the area of funding.
26 Foster stated that collaborative monies do not only come from the state, but the city, as
27 well. He indicated that he would have more of that sort of information the next time he
28 was before the Council.
29
30 Mayor Hodson stated that he would like to see the city participate in funding a grant-
31 writer that would work for the CPC, and other needs of the city.
32
33 Councilmember Sparks highlighted the parks which are one of the many areas of the city
34 that are not part of community services.
35
36 Councilmember Horst stated that the value of the program to the residents needed to be
37 explained to them.
38
39 Mayor Hodson thanked Foster for the update on the program.
40
41 B. Update on tax increment financing. Bob Thistle, Springsted, Inc., will be present.
42 Bob Thistle came forward to review the status of the city's existing Tax Increment Funds.
43 He stated that the review was good news, as all four TIFs are healthy and very solid.
Thistle indicated that Governor Ventura signed into historic tax relief and property tax
6 reform, and that the changed made to the class rates impacted St. Anthony's TIF
47 Districts. The tax capacity's numbers are now firm and the full impact of the changes
48 can be determined.
City Council Regular Meeting Minutes
May 14, 2002
Page 4
0
2 Thistle indicated that the report was based on current funds and current obligations in
3 each of the four TIF Districts. He added that the analysis did not include: inflation,
4 investment revenue, additional development, increase/reduction in class rate.
5
6 Kenzie Terrace is a redevelopment TIF District created in 1982 and expiring in 2008.
7 There is a$247,000 per year Community Center Bond payment through 2010 to pay off
8 the existing funds on the Kenzie TIF District.
9
10 The Chandler TIF District is a redevelopment district created in 1985 that expires in
11 2011. Projected revenue plus the existing fund balance will support a TIF budget through
12 2011 of approximately$1,560,000. Future increments will continue to decline through
13 2004 due to the compression of housing class rates.
14
15 Apache Plaza I is a redevelopment TIF District created in 1993 and expiring in 2019.
16 Increments received are being utilized to pay outstanding debt related to the Cub Foods
17 bonds in the amount of$205,922 per year through 2013. Projections indicate that the
18 district, with its existing fund balance, will continue to be able to support this annual debt
19 service through the last three years of scheduled debt service on the bonds, 2011 through
20 2013, during which a total three -year deficit of approximately$70,000 will occur.
21 Thistle indicated that this was a minor shortfall that should not be a problem for the city
0 to cover.
24 Apache II is a redevelopment TIF District created in 1993 and expiring in 2019.
25 Increments received are being utilized to make annual payments on a pay-as-you-go note
26 with Hellickson Dental. Pay-as-you-go refers to a method of subsidy whereby the
27 developer finances the improvements and takes on the risk and the City agrees to pay the
28 developer as increments are received. Due to the projected reduction in increment it is
29 estimated to take until the year 2007 to pay the full amount of the note, originally
30 scheduled for payoff in 2005.
31
32 Councilmember Host asked how they missed on Apache I. Thistle stated that it was
33 largely due to the change in state tax laws.
34
35 The Council thanked Thistle for the analysis.
36
37 C. Presentation of 2001 City and Housing and Redevelopment Authority Audits. Stuart
38 Bonniwell City Auditor, will be present. Resolution 02-025, re: Consider approval of
39 2001 City Audit.
40 Stuart Bonniwell came forward to review the 2001 City and Housing and Redevelopment
41 Authority Audits.
42
43 Summary of Fund Equity:
• General Fund $ 1,042,702
• Special Revenue Funds $ 354,585
46 • Debt Service Funds $ 1,447,601
47 • Capital Project Funds $ 3,965,606
48
City Council Regular Meeting Minutes
May 14, 2002
Page 5
• Proprietary Funds $ 7,031,255
2
3 • Total Fund Equity $13,841,753
4
5 General Fund:
6 • 2001 Budget $ 3,519,875
7
8 • Revenues $ 3,542,107 $22,232
9 • Expenditures $ 3,475,924 $43,951
10 $66,183
11
12 General Fund Balance:
13 • 2000 Fund Balance $ 976,523
14 • 2001 Budget Reserves $ 66,183
15 • 2001 Fund Balance $ 1,042,706
16 • Goal=30%-35%
17
18 • A-1 Credit Rating/Positive Fund Balance Ratio
19 • 2001 -28.8%
20 • 2000-27.7%
21 • 1999-24.7%
f * 1998 -22.3%
24 General Fund-Reserves:
25 • Working Capital $ 895,634
26 • Self-Insurance Reserves $ 73,067
27 • Unemployment/Contracts $ 28,000
28 • Contract Insurance Reserves $ 14,305
29 • Pre-Paid Insurance 31,700
30
31 • Total Fund Balance $1,042,706
32
33 Police Contracts:
34 • Lauderdale/Falcon Heights
35 • Contract Revenue $ 569,432
36 • Expenditures 505,946
37
38 • Total Surplus $ 63,486
39
40 • Capital Equipment $ 54,800
41 • Purchase of Squad Cars
42
Liquor Operations:
0 • SAV I $ 89,021
45 • SAV II 133,708
46
City Council Regular Meeting Minutes
May 14, 2002
Page 6
• Total Off-Sale $ 222,279
2
3 • Stonehouse 60,536
4 • Total Profits $ 283,265
5
6 Utility Operations-Water/Sewer:
7 • Enterprise Fund—Breakeven Fund
8 * Revenues $1,112,691
9 0 Expenditures $1,104,023
10
11 • Surplus $ 8,668
12
13 • Inflationary Increase 2002 was approved
14 • Water$1.10 per hundred cubic feet
15 • Sewer$2.08 per hundred cubic feet
16
17 Water Filtration:
18 • Interest Earnings Fund O/M
19 • Total Interest Earnings = $ 348,533
20 • Operation/Maintenance = 103,646
16 • Interest Reserves $ 244,887
23
24 • Central Park Project $ 59,000
25 • Un-Funded Contingency
26 • Designate to Complete Park Funding
27 • Balance $185,887 — Funds 2002 O&M
28
29 Severance Fund:
30 9 2000 Liability $ 489,205
31 • 2001 Liability $ 527,919
32 • Current Funds on Hand $ 211,250
33 • Current Policy/Approved by Council: maintain a cash balance over$200,000
34 • No Appropriation Necessary for 2001
35
36 Investment Summary:
37 • U.S. Government Securities $ 6,373,644
38 • Commercial Paper $ 4,205,370
39 * Repurchase Agreements $ 1,771,933
40 • Money Markets $ 290,911
41
42 Total Investments $12,641,858
It • Investment Income= $ 673,938
45
46 Outstanding Debt 12/31/01:
City Council Regular Meeting Minutes
May 14, 2002
Page 7
• • Road Improvements Bonds $ 6,705,000
2 • Tax Abatement Bonds $ 625,000
3 • Liquor Revenue Bonds $ 740,000
4 • Tax Increment Bonds $ 3,360,000
5
6 Total Debt $11,430,000
7
8 • Issue During Year $ 1,785,000
9 • Principal Payments $ 535,000
10
11 GASB 34:
12 • Requires Capital Assets to be reported with accumulated depreciation
13 o Buildings/Automobiles/Computer Equipment
14 o Water Towers/Roads/Storm Sewer Lines
15 • Implementation
16 o Budgets Under$10 Million
17 o Fiscal Years after 6/15/03
18 • Present Software Vendor/$10,000-$15,000
19 o Implementation (Fall 2002 thru Spring 2003)
20
21
Audit Recommendations:
0 • Close Crime Prevention Fund
24 o Present Balance = $819
25 o Transfer to DARE/Forfeiture Fund
26 • Cash Receipts
27 o Review cash receipts system
28 o Possible upgrades to improve efficiency
29 o New cash register system/front counter
30
31
32 Housing and Redevelopment Authority(HRA):
33
34 HRA Fund Balances:
35 • Kenzie Terrace $1,434,073
36 • Chandler $ 365,789
37 • Apache 1 $ 326,527
38 • Tires Plus Building $ 327,176
39 • HRA Projects Fund $ 384,428
40
41 Total All Funds $2,837,993
42
43 TIF Budgets:
• Kenzie Terrace—Community Center
• Chandler—Annual TIF Budget
46 o Current budget$1,560,000
47 • Apache—Debt Service/Cub Foods
City Council Regular Meeting Minutes
May 14, 2002
Page 8
• Tires Plus—Replenish of Cash Outlay
2 • HRA Project Fund—Northwest Quadrant/Others
3
4 Mayor Hodson thanked Bonniwell for his presentation of the City's audit.
5
6 Motion by Councilmember Faust, second by Councilmember Sparks, to approve
7 Resolution 02-025, re: Considering approval of 2001 City Audit.
8
9 Motion carried unanimously.
10
11 VII. GENERAL POLICY BUSINESS OF THE COUNCIL.
12 None.
13
14 VIII. REPORTS FROM CITY MANAGER AND COUNCILMEMBERS.
15 Mornson indicated that the decision was made a few years ago to not maintain a fund balance
16 with the TIF, which he stated was a beneficial from all aspects.
17
18 Mornson asked the Council to consider August 5, 2002 (a Monday) as the next Council Study
19 Session.
20
21 Mornson indicated that Culver's proposal has been delayed by a month due to some permit
0 issues.
24 Councilmember Horst indicated that he attended the Community Services Board meeting this
25 month. He stated that they examined the budget and were able to balance it for the coming year.
26
27 Councilmember Horst stated that he was at Clean-Up Day which he stated was a good event. He
28 continued that it was not as active as it has been in years past, which was likely due to the
29 weather. He suggested that they add another Clean-Up Day for the fall.
30
31 Councilmember Sparks stated that auditions for the inter-generational theater are to be held next
32 week.
33
34 Councilmember Faust stated that he attended a Community Prevention Coalition Meeting and
35 added that everyone should attend one.
36
37 Councilmember Faust indicated that the Sister-City event was to be determined soon.
38
39 Councilmember Faust indicated that the Council continues to meet with the school board
40 monthly in order to keep communications open.
41
42 Councilmember Faust added that he also attended Clean-Up Day.
43
Councilmember Faust indicated that he and Mayor Hodson spoke with one of the local churches
about the upcoming Apache project, which was beneficial.
46
47 Councilmember Faust stated that the St. Anthony Village Library grand re-opening was this
48 Sunday, May 19, 2002, from 12:00-4:00 p.m.
City Council Regular Meeting Minutes
May 14, 2002
Page 9
0
2 Mayor Hodson indicated that he and Ruth Mason, Audio Visual for St. Anthony, are making
3 progress on improvements to the audio system.
4
5 Mayor Hodson indicated that the orchestral concert was well attended, adding that there is a
6 great deal of talent right there in the City of St. Anthony.
7
8 Mayor Hodson indicated that Len Pratt, himself and others took some aerial photos of the
9 Apache site.
10
11 Mayor Hodson stated that Saturday, May 18, 2002, was the next Coffee with the Mayor from
12 7:30-10:30 a.m.
IX. INFORMATION AND ANNOUNCEMENTS.
None.
X. MISCELLANEOUS INFORMATIONAL DOCUMENTS.
None.
XI. ADJOURNMENT.
Motion by Councilmember Faust, second by Councilmember Sparks, to adjourn the meeting at
• 8:32 p.m.
Motion carried unanimously.
Respectfully submitted,
Courtney Seesz
TimeSaver Off Site Secretarial, In .
Mayor
ATTEST:
City Clerk