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<br />. <br /> <br />ARDEN HILLS CITY COUNCIL WORKSESSION MINUTES <br />August 15,2005 <br /> <br />5 <br /> <br />· Finance staff needs more timc to analyze the utility funds due to project activity in the <br />past and future. <br />Planning 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 the 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 arc typically used by the City to cover project cost overruns. The permanent <br />improvemcnt fund was established to temporarily finanec pavement management projects. The <br />special revenue park fund was established for park/trail acquisition and development. Revenue <br />for this fund comes from developer park dedication fees, contributions, state grants, and <br />investment interest. 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 /> <br />Councilmember Holdcn asked if the playground equipment at Valentine Hills is a legal liability <br />to thc City. <br /> <br />City Administrator Wolfe said that she would review this situation and report back to the City <br />. Council on the liability concerns. <br /> <br />Councilmember Larson askcd if the proposed fund balances included rate Increases and <br />projected revenues. <br /> <br />. <br /> <br />Finance Director Muturza Siddiqui said that the CIP revenues do not take into account increased <br />revenues. <br /> <br />Councilmember Holden asked City staff how long does a mill and overlay last. <br /> <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 /> <br />Councilmember Holden asked if the City should be concentrating on mill and overlay repairs. <br /> <br />City Engineer Brown said that the only problem with utilizing mill and overlay is that it will not <br />correct water or drainage issues in a neighborhood. Although, it is a policy issue for the City (0 <br />consider at this time. Rcconstruction costs are very expensive. <br /> <br />Councilmembcr Grant believes that the City should concentrate on the PCI ratings and not storm <br />and water issues. <br /> <br />5 <br />