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Home My WebLink About02.03.20 Council Minutes CITY OF FARMINGTON CITY COUNCIL MINUTES REGULAR MEETING FEBRUARY 3, 2020 1. Call to Order Mayor Larson called the meeting to order at 7:00 p.m. 2. Pledge of Allegiance Mayor Larson led those in attendance in the Pledge of Allegiance. 3. Roll Call Present-Larson, Bernhjelm, Craig, Donnelly and Hoyt Absent-None Staff Present-Administrator McKnight, Finance Director Malecha, Public Works Director Gehler, Community Development Director Kienberger, Police Chief Rutherford, Fire Chief Elvestad, Parks and Recreation Director Distad, Human Resources Director Gabbard and Attorney Jamnik. 4. Agenda Motion by Craig, second by Bernhjelm,to approve the agenda as presented. APIF, motion carried. 5. Announcements/Commendations a) Promotion Ceremony for Deputy Police Chief Jim Constantineau Police Chief Rutherford shared that Jim Constantineau has been with the department since November 1999. He was recently selected to fill the newly created position of Deputy Chief of Police. Administrator McKnight swore in Deputy Chief of Police Constantineau. Deputy Chief Constantineau thanked many individuals who helped get him where he is in his career today. b) Dakota County Library Update February 3, 2020 Minutes - 1- Barb Svoboda of the Dakota County Library Farmington Branch provided an update on activities occurring at the library. Some of the topics reviewed included the library mission, total visitors of 84,547 in 2019, the library role in the 2020 US Census and more. Councilmembers thanked Svoboda for the information, the great asset the library is to the community and the creativity they use in their programs. 6. Citizen Comments a) Response to Mr. Logan Schnitzler 7. Consent Agenda Motion by Hoyt, second by Bernhjelm,to approve the consent agenda pulling item 7n: a) Approve Minutes of the January 21, 2020 City Council Meeting-Administration b) Adopt Resolution R11-2020 Accepting a Donation to the Rambling River Center-Parks c) Adopt Resolution R12-2020 Accepting a Donation from the Farmington Sons of the American Legion to the Rambling River Center-Parks d) Approve Wold Architects and Engineers Proposal to Oversee Bidding Process and Manage Construction of Fire Station #1 Overhead Door Project-Parks e) Adopt Resolution R13-2020 Regarding the Administration of the Wetland Conservation Act Responsibilities to the Dakota County Soil and Water District-Public Works f) Adopt Resolution R14-2020 Appointing 2020 Presidential Nomination Primary Election Judges-Community Development g) Approve Tobacco License for Tobacco and Vape Store, Inc.-Community Development h) Approve Additional Staff Issued Business Credit Cards-Finance i) Approve Bills-Finance APIF, motion carried. 8. Public Hearings None 9. Award of Contract None 10. Petitions, Requests and Communications None 11. Unfinished Business February 3,2020 Minutes -2- None 12. New Business a) 2019 Investment Report Finance Director Malecha provided an update on the city's cash and investment portfolio as required by city policy. As of December 31, 2019, the city had a combined cash and investment balance of$34.5 million. Of this amount,the city had invested $10.6 million in collateralized accounts and $23.9 million in a variety of investments with various financial institutions. One of the cash and investment challenges is how much money to invest short-term to ensure the city has sufficient funds to pay for day-to-day operations, semi-annual debt service, and more significant one-time purchases, such as a street project. Money that is in the city's checking and savings accounts earned varying rates from .25 percent to .90 percent in 2019.This is generally less than the city would earn if it invested in longer maturities. Investing funds longer-term generally yields higher rates of return, but if the city did not have enough funds available to pay its bills and needed to borrow, the cost of borrowing would likely exceed the interest rate earned on the longer-term investment.To offset the lower rate received and still maintain liquidity,the city has funds deposited in a mutual fund with one of the investment brokers, which is at a rate of 1.52 percent. The city purchases investments from a variety of financial institutions. As of December 31, 2019, the city had approximately$2 million in a savings account with Roundbank which is available should there be unexpected cash flow needs.There are also funds on deposit with Old National Bank and Western Asset (Mutual Fund).The remaining investments were purchased from Oppenheimer, RBC, and Wells Fargo. In 2019, Wells Fargo phased out smaller investment portfolios.The city's investments with Wells Fargo matured and the funds were reinvested with RBC and Oppenheimer. The city may invest in a variety of investments as defined in Minnesota Statute Section 118A.04. Certificates of deposit (CD's) have generally provided higher yields than comparable U.S.Treasury and agency maturities.Therefore,the majority of the city's deposits are in CD's. However, to maintain the FDIC insurance there is a $250,000 per insured institution limit.There are also investments with Federal Home Loan Bank(FHLB), Federal Home Loan Mortgage Corporation (FHLMC), Federal National Mortgage Association (FNMA), and in various municipal bonds. The city's longest investment maturity as of December 31, 2019 was 11 years.The maturity ranges for the portfolio are approximately 23 percent for less than one year, 70 percent for 1 to 5 years, and the remaining 5 percent for 5 to 10 years.The city ladders its investment maturities. As investments mature, if there is not a specific cash flow identified the money is February 3, 2020 Minutes -3- invested in roughly the manner shown with the majority maturing within the first five years. Per the city's investment policy, no more than 30 percent of the total investments can extend beyond 5 years and no investments can be purchased for beyond 15 years. Mark-To-Market To provide a realistic measure of an entity's investment portfolio, accounting rules require the investment portfolio be marked-to-market (valued at the current market). It provides readers of the financial statements with an accurate picture of the liquidation value of an entity's investments as of the balance sheet date and provides a consistent method of measurement between different entities. The Treasury yield curve below displays the rates at December 31 for each year.The interest rates have decreased from 2018, but are remaining steady. Councilmember Donnelly asked about the amount of dollars the city has invested. Malecha stated this is the entire balance over all of our funds. The city is not sitting on dollars that do not have a purpose. Councilmembers thanked Malecha for the presentation and her work on investments. 13. City Council Roundtable Bernhjelm-Shared she is looking forward to the upcoming city council goal setting. Craig-Reminded residents of the Wine Tasting event this week. Hoyt-Reminded residents of the free community meal that takes place on Wednesday's at Faith Church. McKnight-Shared that absentee voting continues at city hall for the March 3rd election and reminded the city council that the March 2nd city council meeting is cancelled. Gehler-Reminded residents that there are SWCD workshops they are eligible to attend. Malecha-The 2019 audit will get underway next week. Rutherford-Thanked the city council for including the new deputy chief position in the budget. Elvestad-Recruitment of new firefighters is underway. Distad-Outdoor rinks will be closing on February 17, 2020 for the season. Larson-Encourage residents to shop local. February 3, 2020 Minutes -4- 14. Adjourn Motion by Bernhjelm, second by Hoyt, to adjourn the meeting at 7:41 p.m. APIF, motion carried. Respectfully Submitted Vara P. ?No) rvist David McKnight, City Administrator February 3, 2020 Minutes -5-