HomeMy WebLinkAbout2017/05/01 - ADMIN - Minutes - City Council - Study SessionfffSt. Louis Park OFFICIAL MINUTES
M I N N E S 0 T A CITY COUNCIL SPECIAL STUDY SESSION
ST. LOUIS PARK, MINNESOTA
MAY 1, 2017
The meeting convened at 6:15 p.m.
Councilmembers present: Mayor Jake Spano, Tim Brausen, Steve Hallfin, Anne Mavity, Thom
Miller, and Susan Sanger.
Councilmember absent: Gregg Lindberg.
Staff present: City Manager (Mr. Harmening), Human Resources Director/Deputy City Manager
(Ms. Deno), Chief Financial Officer (Mr. Simon), Finance Manager (Mr. Ebensteiner), and
Recording Secretary (Ms. Pappas).
Guest: None.
1. Debt Model and Upcoming 2017 Bond Issue Review
Mr. Simon presented the report and comprehensive debt modeling tool created by the Finance
Division staff. He explained that as a best practice, staff would like to annually review a newly
created and interactive 10 -year debt model for upcoming bond issuances. While things will
change, the debt model is flexible enough for long-term planning purposes to forecast future
issuances and amounts needed based on identified projects in the Capital Improvement Plan
(CIP) and potential impacts. Mr. Simon indicated that future action is on May 15 when the
council will be asked to approve the pre -sale report/resolution for the 2017A bonds and on June
19 to award the bond sale via resolution.
Mr. Harmening stated there is a lot of infrastructure work being conducted related to Connect the
Park and Texas Avenue. Being able to utilize a debt modeling tool can help forecast what the
homeowner impact will be over time, as well as the cumulative impact of spending, including
operating levy, utility fees, franchise fees, and pavement management program, while taking into
consideration tax increment districts. He added that staff and council will be able to observe the
cumulative impact on homeowners over 10 years. He thanked Mr. Simon and the financial staff
for this tool, adding it will help the council in decision malting.
Mr. Simon presented the debt model to the council.
Councilmember Sanger asked for an explanation of the 2% of fiscal disparity and what that is
assuming. Mr. Simon said that it is difficult to know, but there will be an extra 2% contributed
annually. However, it is just a start and can change. Mr. Simon added that the model looks at
scenarios in real time to see the true impacts.
Mr. Simon presented the tax levy rates, while looking at the annual percentage changes and
fluctuations over time.
Mr. Harmening stated that the model assumes a built-in operating levy of 4% per year. By 2022,
the rate goes down, and the property taxes are spread.
Councilmember Sanger noted this also assumes houses do not have any significant remodels or
improvements over time. She stated this is a wonderful tool that could be an example to other
communities.
Special Study Session Minutes -2- May 1, 2017
Mr. Simon stated he will utilize the tool and plug in numbers related to refinancing with the
bonds. He added that he can come back to the council at a future date for more modeling and
further review. Additionally, the tool will be utilized at the council's fall Capital Improvement
Plan discussions.
Mr. Simon reviewed the 2017 bond issue. Since we are below the BQ amount, we will be
looking at refinancing one bond, also,
The meeting adjourned at 7:00 p.m.
Meliss Kennedy, ity Clerk ak Spano or