Loading...
06-01-1993 LIB MINSPECIAL MEETING OF THE ELK RIVER CITY COUNCIL CAPITAL IMPROVEMENT PROGRAM WORK SESSION HELD AT THE ELK RIVER CITY HALL - CONFERENCE ROOM A TUESDAY, JUNE 1, 1993 Members Present: Mayor Duitaman, Councilmembers Scheel, Farber, Dietz, and Holmgren Members Absent: None Staff Present: Lori Johnson, Finance Director; Phil Hals, Street Superintendent; Pat Klaere, City Administrator Also Present: Library Board Chair, Vicki Sullivan; Library Board Member, Deborah Anderson; Librarian, Mick Stoffers; Great River Regional Library Representative, Ken eehrenger 1. Call Meeting To Order Pursuant to due call and notice thereof, the special meeting of the Elk River City Council/CIP Work Session was called to order at 6:00 p.m. by Mayor Duiteman. 2. Consider 6/1/93 City Council/CIP A ends COUNCILMEMBER SCHEEL MOVED TO APPROVE THE 6/1/93 CITY COUNCIL/CIP AGENDA AS PRESENTED. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. 3. Library Board Presentation Library Board Chair, Vicki Sullivan, presented to the City Council an overview of the proposed library expansion project. Vicki indicated that during the Library Annual Report presentation, the Board was directed to analyze the available finances for a library expansion project and to present the findings to the City Council. It was indicated that the library expansion report (August, 1992) showed a proposed project in the $740,000-$894,000 range which included remodeling expenses for the existing facility in the $182,000-$239,000 range. Of the remodeling expenses, approximately 258 are required due to handicapped accessibility and Americans with Disabilities Act, but the remaining 758 of the remodeling expenses were in the "nice to have" category. Additionally, the construction expenses of the 4,400 square foot addition of $418,000-$462,000 was believed to be a high estimate and it was thought that the project could be completed for less than that amount. The Board is hoping that a total expansion project can be completed for approximately $500,000. Vicki Sullivan also indicated that Lori Johnson, Finance Director, has been working with the Board on available finances for the project. Lori and Vicki reviewed the finances that are available for the project Special City Council/CIP Work Session June 1, 1993 Page 2 and indicated that it could be possible to finance the project over twenty years with available designated revenues. This financing plan is based on the assumptions of a $500,000 project with $160,000 cash being available as of January, 1994. Additionally, it was assumed that $127,000 would be available from TIF Plane No. 1 and No. 3 to help finance this project. The balance could be financed over twenty years based on available funding from the designated landfill reserve and through using about $7-$10,000 from the annual library budget that is approved by the City Council. The key issue in this proposal is the use of TIF monies. Lori indicated there were several possible financing options available depending upon the Council's commitment of TIF Funds. Discussion took place regarding use of TIF funds, the amount of money available on an annual basis to finance a bond or a lease/purchase plan, and the commitment from the Great River Regional Library System for materials and staff if the expansion project takes place. It was noted that a $500,000 project is very tight based on the initial library proposal and that it may be appropriate to look at a project more in the $550,000 range. This would require an additional commitment of TIF funds. It was noted that if a 4,400 square foot addition could not be completed within this budget framework, the project expansion may have to be scaled down. Additional funding beyond $550,000 would be difficult to obtain. It was the general agreement of the City Council that a project of $550,000 for a library expansion would be acceptable. Also, it is anticipated that this project would not happen until 1994 based on the amount of preliminary work that would be needed before ground could be broken. cvuNCiLMEMBER HOLMGREN MOVED TO AUTHORIZE STAFF TO PROCEED WITH THE PREPARATION OF A. TIF AMENDMENT ALLOWING THE USE OF TIF DISTRICT NO. 1 AND NO. 3 FUNDS AS PART OF THE CITY PARTICIPATION IN THE FINANCING OF THE $550,000 LIBRARY EXPANSION PROJECT. COUNCZLMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 5-0. City staff was directed to move forward with a TIF District No. 1 and No. 3 amendment to allow the use of these funds for this project. COUNCILMEMBER HOLMGREN MOVED TO AUTHORIZE THE CONSTRUCTION OF A LIBRARY EXPANSION PROJECT IN AN AMOUNT NOT TO EXCEED $550,000. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 5-0. The Council indicated that the Library Board should develop an action plan which would outline the steps necessary before bidding out the project. The first step is assumed to be the selection of an architect for the project. Special City Council/CIP Work Session June 1, 1993 Page 3 The City Administrator distributed a letter from Don Robinson which regueeted appointment to the Library Board. It was noted that Ken Ringstad has resigned from the Board. CO[JNCILMEMBER DIETZ MOVED TO ACCEPT KEN RINGSTAD'S RESIGNATION AND TO APPOINT DON ROBINSON TO THE LIBRARY BOARD TO FILL OUT KEN RINGSTAD'S TERM OF OFFICE. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. 4. France Department Annual Report - Lori Johnson, Finance Director Finance Director, Lori Johnson, reviewed with the City Council her 1992 Anrpual Report. Lori indicated that most of the numbers related to the firtancea of the City were presented last week with the Audit pr@aentat ion and her Annual Report would deal more with trends and isgues related to her department and only generally to the overall financial status of the City. Lori reviewed with the Council the work duties that are undertaken by her department and examples of some projects that she has worked on in 1992. The City Council discussed in detail the special assessment searches issue and the concern over responding to verbal requests and how these verbal requests are a drain on the Finance Department staff time. COUNCILMEMBER FARBER MOVED TO ADOPT A CITY POLICY CALLING FOR THE CITY STAFF TO RESPOND TO SPECIAL ASSESSMENT SEARCHES ONLY WHEN THE REQUESTS ARE PRESENTED IN WRITTEN FORM. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. Lori reviewed with the Council the list of activities that took place in 1992, the growth in the activity level from 1985 to 1992, the list of all of the 1992 funds managed by the Finance Department, bond issues for 1992 and the City bond rating, the 1992 General Fund Revenue and Expenditure breakdowns along with the analysis of the General Fund Cash Flow Balance, and the City investments for 1992. Additional discussion took place on a City investment policy. The Finance Director provided a handout outlining a City investment policy. COUNCILMEMBER FARBER MOVED TO ADOPT THE CITY INVESTMENT POLICY AS PRESENTED BY THE FINANCE DIRECTOR. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. Lori continued with her Annual Report and discussed the 1992 interest income for the City and the 1993 (and beyond) projects forecasted to be undertaken. The City Council indicated that they would like to see something happen very soon on the urban/rural tax district ratio and also on a city-wide storm sewer funding mechanism. The City Council thanked the Finance Director for her Annual Report. 6. Other Business/Staff Updates