HomeMy WebLinkAbout2022-10-13 Council Work Session MinutesCITY OF CORCORAN
City Council Work Session Minutes
October 131 2022 — 5:30 pm
The Corcoran City Council met on October 13, 2022, in Corcoran, Minnesota. The City Council work
session meeting was held in person and the public was present in person and remotely through electronic
means using the audio and video conferencing platform Zoom.
Mayor McKee, Councilor Bottema, Councilor Nichols, Councilor Schultz, and Councilor Vehrenkamp were
present.
City Administrator Beise, City Clerk Friedrich, Finance Manager Ung, Public Works Director Mattson, and
Director of Public Safety Gottschalk were present.
1. Call to Order /Roll Call
Mayor McKee called the work session to order at 5:30 pm.
2. 2022 Financial Management Plan
City Administrator Beise introduced Tammy Ohmdal, from Northland Securities to present to Council.
City Administrator Beise noted the work session is an opportunity to review the assumptions and
discuss any changes to the 2022 Financial Management Plan.
Tammy Ohmdal, Northland Securities, reviewed the history of Corcoran's long-term financial planning
process and noted the planning began prior to municipal utilities in the City. Ms. Ohmdal noted the
financial plan is a guide with expense and growth assumptions. Council and staff noted prior to 2015,
the City did not have any municipal water or sewer connections. Ms. Ohmdal reviewed the long-term
planning dating back to 2013 included ultra -conservative estimates on number of acres developed,
and as time and momentum have continued, the actual growth in the City eliminated the need to levy
to support the sewer and water debt. Ms. Ohmdal noted the City's projection for equipment and
vehicles, the challenge of getting to PACO and impacts to the tax levy. Ms. Ohmdal noted the water
treatment facility was built into the financial plan with a placeholder amount of approximately $25
million. Ms. Ohmdal noted given the assumed growth is achieved at the levels that are estimated in
the plan, the utility projects, with the chargeable development fees, the connection to the trunk line for
the treatment and storage facility, projections indicate a level of funding that would position the City to
have sufficient cash to pay for those projects. Ms. Ohdal added, whether that will materialize will
depend on whether those assumptions and timing for that revenue materializes in 2023. Council and
staff discussed the projects identified in 2023. Council and Ms. Ohmdal discussed estimated rates for
bonding in 2023 to be approximately 4 percent based on current rates. Council and staff reviewed
current savings rates. Council and staff reviewed City Hall campus plans, what would be included,
where would the future City Hall be located. Ms. Ohmdal reviewed how the General Fund is impacted
by the staffing plan and CI P projections, growth in the community and tax base and demand of
services. Ms. Ohmdal reviewed tax abatement, bonding authority, and reviewed the process. City
Administrator Beise reviewed each of the projects included within the financial plan. Council and staff
discussed gaps between the deferred assessment portions and proceeds from land sale. City
Administrator Beise noted the City Park Phase I estimated cost of $4.8 million with a project total of
approximately $7 million, with additional funding from options from grants and donations. Ms. Ohmdal
noted the City would be closing on bonds in February 2023, with November 17 as the date to finalize
project amounts to be included in the 2023A Bond Series. Ms. Ohmdal noted the amount can always
be reduced on issuance of bonds. Council and Ms. Ohmdal discussed options for prepayment of
bonds, shorter term calls for the bonds, temporary bonds and the amount of flexibility and limited
flexibility for each bond type. City Administrator Beise noted in 2009 and 2010, the City had zero new
homes, in 2011, the City had four new homes, and 2012, there were two new homes, and each new
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home had its own well and septic sites. City Administrator Beise noted in 2015, there were
approximately 30 new homes, with 293 new homes in 2021. Council and staff reviewed commercial
and residential growth rates, and impacts to the budget. Council noted maintaining the property tax or
the city budget to reflect inflation and population growth, a constant tax rate along with the City's
growth, and possibly lowering the tax rate.
3. Unscheduled Items
No unscheduled business was heard.
4. Adjournment
MOTION: made by Nichols, seconded by Schultz to adjourn.
Voting Aye: McKee, Bottema, Nichols, Schultz, and Vehrenkamp
(Motion carried: 5.0)
Meeting adjourned at 6:39 pm.
Miche'hf'e Friedrich —City Clerk
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