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<br /> ARDEN HILLS CITY COUNCIL WORKSESSION MINUTES <br /> August 15, 2005 5 <br /> .~..-- <br /> . <br /> . Finance staff needs more time to analyze the utility funds due to project activity in the <br /> past and futurc. <br /> Plmming and budgeting for future CIP projects is somewhat dependent upon our philosophy or <br /> policies regarding fund balances. We have some internal policies regarding our utility fund <br /> balances, but it is also important to discuss thc importance of fund balances in the following <br /> areas: <br /> . Permanent Improvement Fund (PIR) <br /> . Special Revenue Park Fund <br /> . Non-Assessable Fund <br /> These funds are typically used by the City to cover project cost ovcrruns. The permanent <br /> improvement fund was established to temporarily finance pavement management projects. The <br /> special revenue park fund was established for park/trail acquisition and development. Revenue <br /> for this fund comes from developcr park dedication fees, contributions, state grants, and <br /> investment intercst. The problem with this fund is that the funding from park dedication fees is <br /> very unpredictable. The non-assessable fund was created to account for other projects that the <br /> City of Arden Hills is requested to participate-in. <br /> Councilmcmber Holden asked if the playground equipment at Valentine Hills is a legal liability <br /> to the City. <br /> . City Administrator Wolfe said that she would review this situation and report back to the City <br /> Council on the liability concerns. <br /> Councilmembcr Larson asked if the proposed fund balances included rate increases and <br /> projected rcvenues. <br /> Finance Director Muturza Siddiqui said that the ClP revenues do not take into account increased <br /> rcvcnues. <br /> Councilmember Holdcn asked City staff" how long does a mill and overlay last. <br /> City Engineer Greg Brown said that it depends on the foundation of the roadway, but typically it <br /> lasts seven to twelve years. <br /> Councilmember Holden asked if the City should be concentrating on mill and overlay repairs. <br /> City Engineer Brown said that the only problem with utilizing mill and overlay is that it will not <br /> correet water or drainage issues in a neighborhood. Although, it is a policy issue for the City to <br /> eonsider at this time. Reconstruction costs are vcry expensive. <br /> Councilmember Grant believes that the City should conccntrate on the PCI ratings and not storm <br /> and water issues. <br /> . <br /> 5 <br />