HomeMy WebLinkAbout2015/06/15 - ADMIN - Minutes - City Council - Study Session If/ St. Louis Park OFFICIAL MINUTES
MINNESOTA CITY COUNCIL SPECIAL STUDY SESSION
ST. LOUIS PARK, MINNESOTA
JUNE 15, 2015
The meeting convened at 6:20 p.m.
Councilmembers present: Mayor Jeff Jacobs (present only for the reconvened portion of the
Special Study Session), Mayor Pro Tern Tim Brausen, Steve Hallfin, Gregg Lindberg, Susan
Sanger, and Jake Spano.
Councilmembers absent: Anne Mavity.
Staff present: City Manager (Mr. Harmening), Deputy City Manager/Director of Human
Resources (Ms. Deno), Director of Engineering (Ms Heiser), Senior Engineering Project
Manager (Mr. Shamla), Controller(Mr. Swanson), and Recording Secretary (Ms. Hughes).
Guest: David Mol (Redpath and Company).
1. 2014 Financial Statements—Auditors Discussion & Review
Mr. Swanson presented the staff report and introduced David Mol, CPA.
Mr. Mol presented the 2014 Comprehensive Annual Financial Report and stated that five reports
were issued as part of the annual audit and they have issued a clean or "unmodified" opinion
regarding the City's 2014 financial statements. He advised that the City received the
Government Finance Officers Association's Certificate of Achievement for Excellence in
Financial Reporting for 31 consecutive years and the award demonstrated the City's dedication
to providing financial statements that meet all accounting standards. He stated there was one
item noted in the Report on Internal Controls related to the City's year-end closing process and
explained that some adjustments on prepaid expenses, e.g., the City's primary sewer utility
vendor's January 2014 invoice was paid in December 2013, and, as a prepaid expense, it had not
been reversed out He advised that staff had a plan in place to address this issue in future years.
Mr. Swanson referenced management's response to this item and stated that staff put a plan in
place for 2015 to make sure this issue would not reoccur to the best of staffs ability.
Mr. Mol discussed the Report on Minnesota Legal Compliance and advised that there were no
items of non-compliance noted. He also discussed the Report on Compliance with Federal
Program Requirements and advised there were no items of non-compliance noted. He stated that
auditors were required to inform of accounting policies used and/or changed during the year and
no changes were noted in 2014. He stated the auditors were required to inform whether
estimates were contained in the financial statements and advised that two items were noted
related to the City's estimated net OPEB obligation ($2.2 million) and estimated net value of
land held for resale ($2 2 million). He advised that no difficulties were encountered in
performing the 2014 audit and there were no disagreements with management. He explained
that a new pension accounting standard was required for 2015 related to the City's PERA
participation and the City will be required to report its share of the PERA net pension liability,
estimated at $19 million at June 30, 2014. He presented the 2014 financial summary and stated
the City's 2014 revenues were approximately $85 million and 2014 expenditures were
approximately $84 million, resulting in a net increase of approximately $1.4 million He stated
the City's fund balance/net assets at December 31, 2014, was approximately $103 million and
ending cash balance was approximately $67 million. He reviewed 2014 revenue sources and
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2014 expenditures as a percentage of budget, as well as constraints on the City's fund balances.
He explained that the General Fund's unassigned fund balance of $14,577,000 is intended to
meet the City's cash flow requirements and goal to have 35-50% of the following year's
budgeted expenditures in the General Fund. He presented a history of the General Fund balance
and reviewed the City's Debt Service Funds, indicating debt payable at December 31, 2014, of
approximately $28 million. He also presented information regarding the City's Enterprise
Funds, including water, sewer, and solid waste and discussed the City's historical tax levy and
tax rates He stated that the City is a net contributor to the fiscal disparities pool and the City's
net 2014 contribution was approximately $3.8 million or 5.8% of the City's tax capacity. He
stated that the City's 2014 audit produced good results with no items of non-compliance noted in
State or Federal compliance and only one item noted with respect to year-end closing
adjustments.
Mayor Pro Tern Brausen stated it is great to know the City is on solid financial footing and
commended staff and the auditors on doing a great job.
Mr. Harmening thanked Mr. Swanson and his staff for all their work on the City's audit and for
their outstanding efforts in managing the City's finances.
Mayor Pro Tern Brausen recessed the Special Study Session at 7:14 p.m. in order to convene the
Economic Development Authority and City Council meetings.
Mayor Jacobs reconvened the Special Study Session at 9.44 p.m.
2. Update on Highway 100 Traffic Issues (Verbal)
Mr. Harmening introduced the topic.
Mr. Shamla advised that staff has been working with the Communications staff on keeping
residents updated about the Highway 100 project. Communication has been working with Park
TV, Discover SLP, and posting on social media that St. Louis Park is open for business during
construction of Highway 100.
Ms. Heiser stated that the project is on schedule and Minnetonka Boulevard is scheduled to open
the end of October She distributed a memo from Mn/DOT summarizing its traffic counts and
traffic modeling on Wooddale and Highway 7 that was completed in response to concerns about
safety and congestion. She also distributed a memo from Mn/DOT containing six scenarios for
Wooddale and Highway 7 intended to address congestion in this area. She noted that Mn/DOT's
focus is on capacity and the majority of problems occur during the p.m. peak with almost 1,000
trips on the mainline of Wooddale. She stated that the City's focus has always been on safety
and staff does not agree with Mn/DOT's order of ranking as contained in their memo, adding
staff also does not agree with Mn/DOT's status quo recommendation.
Mr. Harmening pointed out that reducing congestion is important but the City's first priority is
safety.
Council agreed that the City's first priority is and should continue to be safety.
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Ms. Heiser advised that staff is willing to try all-way stops at the top of the ramps on Wooddale
and acknowledged there is going to be backups. She stated staff is also recommending that the
regional trail be detoured to the stop sign at the south ramp.
Mayor Jacobs suggested that the City wait to see what happens with traffic in the area pending
the completion of construction on 36th and Wooddale this weekend and then decide if the all-way
stop signs should be installed.
Councilmember Sanger stated she was willing to try the all-way stop signs.
Councilmember Hallfin felt that the ramps from westbound Highway 7 onto Wooddale should be
closed if Police and Fire are in agreement with that closure.
It was the consensus of the City Council to delay the installation of all-way stop signs until the
36th and Wooddale project is completed and to direct staff to move toward installation of all-way
stop •:.s on a pilot basis.
Ms. Heise agreed to discuss possible closure of the westbound Highway 7 ramp to Wooddale
with Polic: and Fire.
Mayor .c•d•s adjourned the meetin: at 10:08 pin.
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Melissa ' ennedy, C y Clerk ( ) ff Jacobs a or