01-10-07-PC - Laserfiche WebLink

Home Browse Search

ARDE?\ HILLS CITY COUl\'"CIL - November 20,2006 Study, The study recommcnded rates for thc period 2005-2009, However. the analysis Ehlers is performing will effectivcly update that rate study and assist us in detcrmining whether additional changes to the utility rates will be needed in 2008, Mark Run: Ehlers & Associates, provided the City Council \vith an overvie\v of the financial management plan. He noted that in revie\ving the financial bonding rating of a city, Standards & Poor will look at a city's overall dcbt, economy, currcnt tinaneial status. and long term management/future financial planning. In completing a financial management plan, the City is cxhibiting good financial stewardship to the public. Typically cities that experience poor bond ratings are caused by the mismanagemcnt of public funds during a large public project. Mr. Ruff notcd that the draft financial management plan reviewed the City of Arden Hills proposed revcnues and expenditurcs over a ten ycar time frame. The proposed expenditures and rcvenues also include thc City's capital improvemcnt plan. but does not include any inli-astructure costs rc1ated to the TC AAP project. The long term question that the City Council should address is what fund balanccs arc the City Council comfortable with, Overall, the City appears to be in good financial shape based upon thc draft tinancial managcment plan. A second option for the City Council to considcr is thc possibility of splitting the capital equipment and capital ilnprovement projects into two scparate funds. Councilmembcr Larson noted that the proposed tinancial managemcnt plan does not take into consideration potential cxpcnditurcs for thc TCAAP project. By not including the projected expenditures, this may leavc futurc City Councils at a financial disadvantage. City Adminsitrator Michelle Wolfe said that onc of the reasons why City stafT recommended that a financial management plan be crcated was due to the potential costs associatcd with the TC AAP project, The tinancial managcment plan will be a good base for future discussions regarding the TC AAP projcct. Councilmcmber Larson asked why the utility funds arc not includcd in the tinancialmanagement plan for the years 2012 to 2015, City Administrator Wolfe notcd that the future utility costs arc only estimatcs and havc not bccn broken down by individual funds (water, scwcr, and storm) at this time, Mr. Mark RujT reviewed the City's proposcd public safcty and capital portion of the linancial managemcnt plan with the City Council. The public safety capital plan includes proposed cquipmcnt purchases and the replacemcnt of Fire Station #1. Fire Station #1 is proposed to bc rcplaced or rcconstructed in 2012. City Administrator Michelle Wolfe said that thc City is budgeting for a nceds assessment study at Fire Station #1 in 2007. This will allow the City to cvaluate the need for a new fire station or if thc currcnt tirc station can be rcmodeled/rcpaired to meet the future nceds of the Lake Johanna Firc Dcpartmcnt. 2.