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<br /> ARDEN HILLS CITY COUNCIL - November 20, 2006 ~ <br /> Study. The study recommended rates for the period 2005-2009. However, the analysis Ehlers is . <br /> performing will effectively update that rate study and assist us in determining whether additional <br /> changes to the utility rates will be needed in 2008. <br /> Mark Ruff, Ehlers & Associates, provided the City Council with an overview of the financial <br /> management plan. He noted that in reviewing the financial bonding rating of a city, Standards & <br /> Poor will look at a city's overall debt, economy, current tinancial status, and long term <br /> management/future financial planning. In completing a financial management plan, the City is <br /> exhibiting good financial stewardship to the public. Typically cities that expcrience poor bond <br /> ratings arc caused by the mismanagement of pub lie funds during a large public project. <br /> Mr. Ruff noted that the draft financial management plan reviewed the City of Arden Hills <br /> proposed revenues and expcnditures over a ten year time frame. The proposed expenditures and <br /> revenues also include the City's capital improvement plan, but does not include any infrastructure <br /> costs related to the TCAAP project. The long term question that the City Council should address <br /> is what fund balances are the City Council comfortable with. Overall, the City appears to be in <br /> good financial shape based upon the draft financial management plan. A second option for the <br /> City Council to consider is the possibility of splitting the capital equipment and capital <br /> improvement projects into two separate funds. <br /> Councilmember Larson noted that the proposed financial management plan does not take into <br /> consideration potential expenditures for the TCAAP project. By not including the projected <br /> expenditures, this may leave future City Councils at a financial disadvantage. . <br /> City Adminsitrator Michelle Wolfe said that one of the reasons why City staff recommended that <br /> a financial management plan be created was due to the potential costs associated with the TCAAP <br /> project. The financial management plan will be a good base for future discussions regarding the <br /> TCAAP project. <br /> Councilmember Larson asked why the utility funds are not included in the financial management <br /> plan for the years 2012 to 2015. <br /> City Administrator Wolfe noted that the future utility costs are only estimates and have not been <br /> broken down by individual funds (water, sewer, and stonn) at this time. <br /> Mr. Mark Ruff reviewed the City's proposed public safety and capital portion of the financial <br /> management plan with the City Council. The public safety capital plan includes proposed <br /> equipment purchases and the replacement o[ Fire Station # 1. Fire Station # I is proposed to be <br /> replaced or reconstructed in 2012. <br /> City Administrator Michelle Wolfe said that the City is budgeting for a needs assessment study at <br /> Fire Station #1 in 2007. This will allow the City to evaluate the need [or a new fire station or if <br /> the current fire station can be remodeled/repaired to meet the future needs of the Lake Johanna <br /> Fire Department. . <br /> 2 <br />