2020-09-23 WS & CC Minutes - Approved

Home Browse Search

City of Centerville Council Meeting Minutes September 23, 2020 covered for a decrease of up to 20%. He stated that if it is more than that, Staff would bring it before Council for addressing the shortfall. Finance Director DeJong stated that the City has strong cash flow, good investments spread out at decent rates, is investing responsibly, has reviewed their Enterprise Funds ensuring that there are sufficient cash levels to fund the City’s operations and ensuring that if funds drop below the targeted level of Fund Balance, there is a plan for raising them back up with modest changes in any additional fees. He commended the Council for putting together a very responsible budget and being very respectful of what is going on by having a Levy increase of less than .9%. Mayor Love stated that the budget is in very good shape due to planning by Staff and Council’s over the years and that he is very proud of that fact. Council Member Koski thanked Finance Director DeJong for the explanation and presentation. He asked whether the City’s investments were guaranteed/variable. Finance Director DeJong stated that they are fixed rate interest investments and that they are generally CD’s from commercial banks which are covered by FDIC limits. He also stated that staff does not invest more than $250,000 in any given CD in case there is a problem with the bank. He stated that the CD’s are spread out over multiple years, coming due at different times, allowing the ability to take advantage of the short-term increases in the market rate(s). He stated that his most recent investment was at .8% interest which is slightly below the 1% interest used in projected calculations. He reported that this is variable as several investments exceed the 1% interest rate. He stated that the City is in good shape. Council Member Koski briefly mentioned an article that he had read in the League of MN Cities, Minnesota Cities Contents (Sept./Oct. 2020) edition, Cities Brace for Financial Impact of COVID-19 and stated that it was very interesting in the environment that we are in and that the City of Centerville is sitting in very good shape. He recommended the article. He also stated that the City has two (2) levies; one (1) for the General Fund and one (1) for Debt Services. He noted that the debt service is what the City is paying for bonds/loans. Finance Director DeJong commented that the debt services is for principle and interest on funds that the City has borrowed. Council Member Koski stated that $378,189 is paid yearly. Council Member Koski desired to inform the public that the City has paid/refinanced these bonds to decrease its outstanding debt over the years and he appreciates Council’s due diligence in decreasing its debt. Council Member Montain stated that through the discussions he was content at where the Preliminary Budget and Levy are at. Council Member Wilharber stated that he echoed Council Member Koski’s comments regarding the City’s debt levels and complimented Staff, previous Council’s and the current Council’s commitment for decreasing these levels and paying cash for projects. He stated that this was much appreciated as a Council Member and as a resident of the City. Mayor Love thanked staff for the memorandum and stated that it is really good for the City to look at the future and its possibilities. He stated that it is good to know that the City is in good shape and knowing that the City will be able to withstand potential difficult times associated with COVID or other issues that may impact the City. Mayor Love desired for the public to know that numerous Work Sessions were held where robust discussions have taken place regarding this item and that is the reasoning for limited discussion this evening. He stated that the “fine tuning” and “line-by-line” discussions took place at that level. Page 5 of 10