1. Call to Order. The workshop session of the Council of the City of Rogers was called to order by Mayor Grimm on Tuesday, February 9, 2010 at 5:30 p.m. at the Rogers Community Room, 21201 Memorial Drive, Rogers, MN, 55374.
Council present: Jay Bunting, Rob Bell, Jason Grimm, and Steve Rauenhorst.
Council excused: Jamie Davis.
Staff present: Stacy Doboszenski, Assistant City Administrator/Clerk; Rose Lorsung, Planning Consultant; John Seifert, Public Works Supt., Steve Stahmer, City Administrator; Lisa Wieland, Finance Director; and Bret Weiss, City Engineer.
2. TIF Management Plan – Presentation by Ehlers & Associates and Discussion
Introduction of Bruce Kimmel and Liz Diaz from Ehlers and Associates.
Kimmel and Wieland provided a PowerPoint presentation titled Tax Increment Financing Management Review and Analysis Report dated February 9, 2010.
Decertification of TIF 10 and TIF 11 and a return of $315,292 back to the county for redistribution.
Bell asked if the money can be spent within the city.
Wieland explained the money had to have been programmed for use within its first five years.
Kimmel spoke on pooled tax increment bonds.
Wieland spoke on excess special assessment revenue that can be used to pay down other 429 projects that are in a deficit situation.
Wieland discussed the 2008 GO Improvement Refunding Bonds and the assessments levied to back the bonds – Industrial Boulevard assessments. Wieland discussed the prioritization of how the bonds will be paid and provided the option of using TIF 1 cash flow to back the bond payments. Looking for council consensus on the following prioritization for payment of the 2008 GO Bonds: Special assessments, prepaid assessment, TIF 1, then general obligation; council concurred with the prioritization.
Wieland continued with a list of transportation projects totaling over $10M.
Council and staff discussed the additional ARRA funds received for the fly-over project reducing city costs of $1.9M down to $400,000.
Wieland continued with the full transportation projects list and the approximate funding. Wieland stated the list can be amended until the district is decertified. The plan needs to be noted with the projects; but actual contracts don’t need to be issued.
Diaz stated the district expires, but because of the remaining outstanding debt, the money can continue to be spent from TIF No. 1. Diaz stated the project list needs to be completed prior to the end of 2011.
Weiss discussed using TIF to leverage the costs of the project and spread the funds further.
Wieland stated all TIF districts are very healthy.
3. Financial Management Plan
Goal of staff is to provide as much information as they can for Council to use as a management tool; an all encompassing document. Not the sales pitch for pro-annexation or pro-reelection document. As transparent as staff can be with the needs of the City. A realistic document in which the Council/City can reach some of its goals. Items that need to be cleaned up, such as past interfund loan borrowing, etc.
2009 is the budgeted numbers, not actual. Wieland stated the fund balance will more than likely end up closer to 60%. Wieland spoke on intentional use of fund balance of $550,000 for 2011; a one-time use. Wieland discussed the inflationary percentages worked into the plan.
Wieland discussed the staff plan portion of the FMP.
Grimm questioned line 19. Wieland stated line 12 (unallotment levy) and line 19 wash.
Wieland continued discussing the FMP.
Wieland discussed the interfund loan repayment to RSAC, subject to council approval, over two years; $650,000 each year.
Wieland discussed new debt shown on line 71 of the FMP.
Wieland discussed Hassan’s full tax capacity coming in 2012; shown on line 78.
Stahmer discussed how the tax rate can come down to a reasonable and sustainable level. Stahmer discussed the conservative nature of the FMP.
Grimm questioned line 11 between 2011 and 2012; Wieland stated balancing the budget, Hassan’s expenses, staffing increases, interfund loan, RAC increases, Cabela’s abatement….expenses less anticipated revenues and the difference is the levy.
Kimmel stated line 11 is the formula for the property tax requirement to balance the budget.
Wieland continued to discuss the additional expenditures between 2011 and 2012 that increased line 11.
Stahmer discussed the Cabela’s tax abatement included in 2012; 100% of the city’s tax portion.
Staff discussed the equipment certificate; a list to be presented to the council, and not borrowing money on items that won’t be approved….approvals prior to the borrowing of money.
Wieland proceeded through the supporting documentation included in the FMP.
Wieland pointed out on pages 7 and 8; park projects, shows without a referendum additional growth is needed to pay for the park needs.
Wieland stated page 9 is the staffing plan. Titles are not as important as plugging in positions based on past requests; placeholders.
Wieland stated page 11 is the growth projections. As growth comes back, able to meet the capital needs in the plan.
Grimm pointed out Stone’s Throw with ‘zeros’ across the board. Wieland stated the projections are very conservative.
Wieland concluded with stating the plan is a good plan, even with all the needs, the city’s tax rate only increases 10% and staff knows the council would never do that, but it does show the possibilities. Wieland stated she wants the council to have ownership in the plan, council to give their recommendations, and will continue to discuss the plan with the council as it changes.
Grimm asked council to look at the $650,000 interfund loan and to spread it out over a period of years; Bunting and Rauenhorst concurred.
Bunting; assuming the sales of the wastewater treatment plan, what is the most advantageous for us to do, to push out the repayment of the interfund loan?
Seifert stated expansion of the wastewater treatment plant is not included in the FMP; in the event the wastewater treatment plant didn’t happen. Wieland clarified that debt would not be general obligation.
Wieland discussed the reserve percentage; state acceptable is 35% to 50%. Wieland discussed having the FMP show the reserve percentage as a positive from a bond rating standpoint.
4. Brief discussion of Consent Agenda items
Wieland explained the municipal development district; entire city limits, and the different TIF districts within the municipal development district. The original municipal development district needs amendment to incorporate all the new city limits with annexed parcels; again in August and again in final annexation. Wieland discussed the importance of amending the municipal development district.
Bell was reviewing the map and questioned how we ended up with non-contiguous units. Seifert provided an explanation on how annexations were allowed to occur in the past.
Bunting moved, Bell seconded a motion to adjourn the meeting at 6:43 p.m. Motion carried 4-0.
Assistant City Administrator/Clerk