HomeMy WebLinkAbout2003-08-28 Council Minutes - Part 1
CITY OF CORCORAN
COUNCIL WORKSHOP
AUGUST 28, 2003
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Mayor Guenthner opened the workshop at 6:00 p.m., on August 28, 2003. The
purpose of the workshop was to address the City’s 2004 preliminary budget.
Present were Councilors Bucher, Guenthner, Lymangood, and Thomas. City Staff
present included Administrator Vergin, Clerk/Treasurer Tillmann, and Public
Works Director Meister. Others present included Paul Donna, Northland
Securities, and Cynthia Smith-Strack, Municipal Development Group, Inc.
MOTION by Thomas, seconded by Bucher and carried unanimously to approve
the agenda as presented.
Paul Donna, Northland Securities, and Cynthia Smith-Strack, Municipal
Development Group (MDG), were present to provide an overview of the roles and
responsibilities of an Economic Development Authority, to assist the Council in
determining if the City is ready to pursue an EDA levy with the 2004 budgeting
process.
Cynthia Smith-Strack explained that an Economic Development Authority is a
public body corporate and politic and a political subdivision of the state with the
right to sue and be sued in its own name. An EDA carries out an essential
governmental function when it exercises its power, but the EDA is not immune
because of this. Additional functions are outlined in MN Stat. 469.090 – 469.108.
There are many benefits of establishing an EDA, including but not limited to the
ability to acquire and hold property, enter in contracts and limited partnerships,
ability to hold and sell property, act an HRA, borrow and issue bonds, and supply
small business capital.
Councilor Gageby was present at 6:11 p.m.
The City of Corcoran currently has an EDA, which was implemented when civic
center was added on to the City Hall building, however, it is currently not active.
Council expressed their appreciation for the information, and agreed that now is
not the appropriate time to enact an EDA levy. Councilor Lymangood offered to
follow up with MDG regarding the City’s current EDA, comprehensive land use
plan, and potential future goals and opportunities for Economic Development.
Discussion was held regarding financing options for the proposed facility
expansion. Paul Donna explained that the City has several options, including the
following:
• A referendum
• Lease Revenue bonds through the HRA/EDA and then lease back to City
of Corcoran. The current city hall was established this way
• General Revenue Bonds, which places a limit on the annual debt service a
city can have, based on a percentage of market value of county, not city,
according to MN statute.
Regarding the facility expansion, the majority of the Council feels that now is not
the right time. There are not standing needs for the facility at this time. Councilor
Lymangood offered that Hennepin County and the Ambulance service would have
Call to Order
Roll Call
Approve Agenda
Overview of Economic
Development Authority
Facility Expansion
CITY OF CORCORAN
COUNCIL WORKSHOP
AUGUST 28, 2003
H:\City Hall Information\CITY GOVERNMENT\Council, Commissions & Committees\Council Information\Council Minutes\Previous Years\2003 - Need to
PDF\08.28.03 Budget Workshop.doc
space in the proposed facility, which would bring a needed presence to the City. In
addition, interest rates are at historic lows. Councilor Bucher added that the
facility committee put a lot into the expansion plan, but there is nothing demanding
an expansion to the facility at this time, or in the next year. There is enough room
in current facility for present needs. There is not enough momentum to proceed
ahead right now. Consensus is that it will not happen in 2004.
Discussion was held regarding the proposed reserve fund policy. A good target
zone is 35 – 50 %. Currently, the City enjoys a 31-32% reserve. Paul Donna
advised that there is not a relationship between the City’s reserve fund and the
credit rating. Council directed staff to finish the reserve fund policy using a target
of 40% reserve, and research past history to determine if that is an appropriate
level. Council will consider the policy at a future meeting.
Budget Timeline
Administrator Vergin advised that the preliminary levy will be adopted by the
Council on September 11, 2003, and must be certified to the County by September
15, 2003.
Mayor Guenthner called the next budget workshop for September 11 at 6 p.m. to
address the 2004 budget, and recessed the budget workshop at 6:52 p.m.
____________________________
Kary Tillmann, City Clerk
Reserve Fund Policy
Budget Timeline
Call Next Workshop
Adjournment