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HomeMy WebLinkAbout2003/02/18 - ADMIN - Minutes - City Council - Study Session fiST.ILOUOIFSCTY CITY COUNCIL STUDY SESSION RK February 18, 2003 The meeting convened at 9:42 p m Present at the meeting were Councilmembers Jim Brimeyer, Chris Nelson, Paul Omodt, Susan Sanger, Sue Santa, Sally Velick, and Mayor Jeff Jacobs Staff present: City Manager (Mr Meyer); Finance Director(Ms. McGann); and Recording Secretary (Ms Samson) 1. Capital Improvement Program Discussion Mr. Meyer requested Councilmembers to frame Ms. McGann's presentation with the assumption that the administration's proposed budget cuts would be enacted as originally proposed. Ms McGann discussed the 2003 GO Bond Issue, the Debt Obligation Context, and the Capital Categories and funding mechanisms. Options to increase the tax levy would include debt levy, referendum, and repeal of levy limits, e g., increase the regular levy. Ms. McGann reported that franchise fees could be used to capture revenues for street maintenance. Franchise fees could be established for local utilities such as water, sewer, electric, and gas to pay for a portion of the Pavement Management Program. Councilmember Nelson suggested holding off on the Pavement Management Program Councilmember Sanger inquired if the City should consider bonding for greater than two years. Ms McGann said no specific funding has been identified for the Park Improvement Fund (PIF) The PIF receives approximately $182,000 of the property tax levy, and the PIF competes for bond proceeds. One option for the PIF is to sell City property to fund projects Ms. McGann said the Equipment Replacement Fund is healthy, however, it is being scrutinized for best management practices Equipment Replacement is paid for by annual departmental charges. Ms McGann commented that the Storm Water Utility Fund needs more money in its pool Staff also reviewed the expenditures proposed for the Technology Replacement Fund and the Municipal Building Fund. Councilmember Bnmeyer commented that the street rehabilitation program could be delayed but the Pavement Management Program should be done now. Councilmember Santa agreed. Councilmember Sanger also agreed with Councilmember Bnmeyer and, she added, it is unlikely the State budget will improve any time soon; what may be needed is more bonding or franchise fees Mr Meyer reiterated that there is support from the Council to move ahead with the 2003 and 2005 GO bonds. The consensus from the Council is to bypass the referendum route It was noted that fees cannot exceed the City's costs; and the legislature is setting fees or caps 2. Adjournment The meeting concluded at 10 45 p m • Cit Clerk 14ayor i