1. Call to Order. The workshop session of the Council of the City of Rogers was called to order by Mayor Bunting on Tuesday, October 23, 2012 6:00 p.m. at Rogers Community Center, 21201 Memorial Drive, Rogers, MN, 55374.
Council present: Rob Bell, Jay Bunting, Don Hall, and Rick Ihli.
Member excused: Maureen Stanley.
Staff present: Jeffrey Beahen, Police Chief; Gary Buysse, Liquor Operations Manager; Stacy Doboszenski, Assistant City Administrator; Brad Feist, Fire Chief; Steve Stahmer, City Administrator; John Seifert, Public Works Supt.; Bret Weiss, City Engineer; and Lisa Wieland, Finance Director.
2. Capital Improvement Plan Discussion
Administrator Stahmer opened the discussion stating the meeting is to primarily review the capital improvement plan; facilities, equipment, parks, etc. Stahmer discussed how the CIP is incorporated into the City's Financial Management Plan (FMP). The focus will be on the next five years, the plan includes ten years overall. Staff is looking for feedback from Council in terms of prioritization. Stahmer stated the CIP creates vision and path to find solutions, it is a TOOL, not a blueprint. The goal of the CIP is to provide stable or relatively flat taxation rates provided through combination of operation service levels and capital needs.
Wieland addressed the Council regarding the CIP process; needs between the years 2013-2020. Wieland highlighted the following:
• Impacting Assumptions
• Current costs/Inflation factors
• Current debt issuance trends, debt levels and bond laws
• 2013-2020, timing of capital to anticipated replacement needs and taxpayer pressures for new services and programs, growth demands (Seniors and Park Commission)
• Another moving part are the revenue sources: anticipated partnerships with Federal, State, School, non-profit organizations; cash flows of newly created sinking funds, development fees, assessment policy, transfers in & pull tab revenues
• Most importantly if we build in as many assumptions and needs that we can anticipate, it provides the City with the ability to meet unplanned for emergency capital expenditures
Wieland provided the CIP document to Council and asked that they turn to page two; transportation capital improvements list. Wieland reviewed the various columns on the transportation worksheet and provided an explanation for each.
Wieland then explained how the transportation worksheet ties into the first page; CIP Streets Capital budget. Wieland stated the pavement management plan will be incorporated into the CIP once it is completed. Weiss believes it should be completed by January 2013.
The Transportation section was then reviewed along with projects projected between 2013-2020.
Weiss stated when there are new programs to fund roadway systems, we have gone after the funding and shifted priorities. Weiss explained that if the Council locks in on the priorities list, they may miss out on those funding opportunities. MnDOT has recognized Rogers as an organization that can get those types of projects done.
Wieland stated the equipment page is all equipment with the exception of the fire department; they have a separate funding source through pull-tab revenue.
Chief Beahen then discussed why he had to change the squad rotation; a change in square miles has accelerated the need to replace squads. Staff continued to discuss the city equipment worksheet.
Hall questioned leasing and if staff has looked into leasing as an option. Wieland stated leasing has been compared to purchasing in the past on big ticket items; staff has always been able to get lower interest rates with outright purchase.
At this time Chief Feist reviewed the fire department equipment worksheet. There was discussion on the refurbishing of utility 11; instead of refurbishing looking to move up the purchase. Wieland discussed pull tab and rental revenue coming from pull-tabs/Muni.
Council and staff briefly discussed capital equipment for the fire department being covered with contracts with other entities. Consensus was to have the public safety task force discuss capital equipment/fire contracts.
Wieland continued with the buildings and building improvements worksheet. Wieland stated public safety buildings are eligible for CIP bonds; legally do not have to hold a referendum.
Wieland directed the Council to the park and recreation CIP worksheet. There was a discussion on the possibility of a future referendum for park capital/land purchases. Wieland then continued with the trails dedication fund.
Wieland then discussed the information systems worksheet stating it is intended to be self-funding with sinking funds.
Wieland concluded that future budget workshop sessions will include line item detail budgets, personal services budget, enterprise fund budgets, full financial management plan projections based upon assumptions to date, and overview of budget/levy summary – anticipated tax effects.
Ihli moved, Stanley seconded a motion to adjourn the budget workshop at 6:59 p.m.
Assistant City Administrator/Clerk