HomeMy WebLinkAbout2020-02-13 Council Work Session MinutesCITY OF CORCORAN
City Council Work Session Meeting Minutes
February 13, 2020 — 5:00 pm
The Corcoran City Council met on February 13, 2020 at City Hall in Corcoran, Minnesota.
Present were Mayor Thomas, Councilor Schultz, Councilor Dejewski, and Councilor Anderson.
Councilor Bottema was excused.
Also present were City Administrator Martens, Administrative Services Director Beise, Public
Works Director Mattson, and Director of Public Safety Gottschalk.
1. Call to Order /Roll Call
Mayor Thomas called the meeting to order at 5:01 pm.
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2. Financial Management Plan Review
City Administrator Martens briefly discussed the history of
and purpose of financial
management planning. City Administrator Martens noted financial management planning allows
Council to estimate assumed growth and needs within the City; to recognize legislative decision
and action outcomes; and to review how tax rates may be impacted based on assumptions.
City Administrator Martens noted Council's direction to maintain or lower the tax rate in
establishing the 2021 budget.
Tammy Omdal, Northland Securities, addressed the Mayor and Council. Ms. Omdal reviewed
Corcoran's past revenue history and focus regarding revenue sufficiency and establishing cash
fund balances to meet goals for general and utility funds. Council and staff discussed a revenue
objective for a healthy water and sewer fund balance, and the City's adopted policy regarding
minimum balances within utility fun
future City tax rate growth Of 1 percent
objectives, bond
annually
funds. Ms. Omdal and Council discussed assumptions of a
ally for property within the City, future planning
future
debt service through the next
decade. Council discussed the City's bond rating. Council and staff reviewed the necessity for
It: future needs and costs to determine which projects should be repree snted in
financial management planning. Council noted the investment the City has made in parks is
significant, and Council may want to review future park funds rather than land acquisition. Ms.
Omdal and staff reviewed planned revenue increases for water and sanitary sewer services,
and the increase in costs associated with trunk line availability charges within developable
acres. Council asked for clarification on fees associated with northeast Corcoran trunk line
availability charges from 2021 to 2022. Ms. Omdal noted the additional planned fees are
necessary to fund the water tower project for southeast Corcoran. Ms. Omdal summarized the
certified, preliminary and project budget numbers, fiscal disparity impact regarding net property
tax capacity and city tax property rate annual changes. Council reflected on tax rates and what
residents receive for an increase in property tax rate. Council discussed maintaining the
constant tax rate increase projection to be reflective of the 6.2 percent established growth,
versus the 10 percent anticipated tax rate increase. Ms. Omdal reviewed the General Fund,
Enterprise Fund, Water Fund and Sewer Fund balances. Ms. Omdal compared tax levy and tax
base and the cumulative percent increase in tax base. Council asked for clarification on the
cumulative percent increase in tax base. Ms. Omdal stated the cumulative percent increase is
reflective of the 115 percent tax base growth projected between 2016 and 2027 in Corcoran.
s, estimated average home price, and
Council inquired about the proportion of Debt Service Levy to the General Fund Tax Levy
compared with other city's Corcoran's size. Ms. Omdal indicated Corcoran does not have a
very large Debt Service Levy to General Fund Tax Levy ratio, as compared to other cities in
similar size. Ms. Omdal reviewed new construction projected units for residential and
commercial building permits through 2039. Ms. Omdal reviewed briefly Capital Improvement
Plan projections and debt through 2025. Council inquired about including costs for paving of
roads. Ms. Omdal indicated there is no current funding for pavement of roads included in the
Capital Improvement Plan. Ms. Omdal reviewed use of funds and source of funds within the
Capital Improvement Plan. Ms. Omdal reviewed the General Fund Financial Plan through 2027,
tax levies, and tax rates. City Administrator Martens noted the balance is unrestricted and has
not been allocated, and a meeting will happen after audit occurs when the reserve fund is
determined. Ms. Omdal reviewed Water Fund, and Sewer Fund assumptions, depreciation and
net position, and the cumulative difference between revenues and expenses. Council inquired
about maintenance and repairs and where that is projected within the end cash balance
projections and infrastructure needs. Council indicated a need to attribute funds into
maintenance for Water and Sewer Fund balances. Council and staff referred to the 2040
Comprehensive Plan regarding location of main trunk infrastructure location and how costs
associated and distributed within the area. Council and staff discussed developer funding for
the trunk infrastructure costs within new developments.
3. Unscheduled Items
No items were discussed.
4. Adjournment
MOTION: made by Schultz, seconded by Anderson to adjourn.
Voting Aye: Anderson, Dejewski, Schultz and Thomas
(Motion carried 4:0)
Meeting adjourned at 6:37 pm.
Michelle Friedrich —Deputy Clerk
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