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HomeMy WebLinkAbout10.03.22 Work Session Minutes City of Farmington City Council Work Session Minutes October 3, 2022 1. Call to Order Mayor Hoyt called the work session to order at 5:00 p.m. Present: Hoyt, Bernhjelm, Lien, Porter, Wilson Also Present: Lynn Gorski,City Administrator;Julie Flaten,Assistant City Administrator/HR Director; Chris Regis, Finance Director;Jim Constantineau, Deputy Police Chief; Kellee Omlid, Parks and Recreation Director;Cynthia Muller,Administrative Assistant Audience: Holly Bernatz 2. Approve Agenda MOTION by Bernhjelm, second by Wilson to approve the agenda. APIF, MOTION CARRIED. 3. Discussion Items a. Future Debt The current debt service tax levy for 2023 is $2,069,565. With the possible expansion of the police facility, street reconstruction projects out to 2027, and recreation capital projects, this number will increase. Finance Director Regis presented two scenarios of the potential impacts of new debt on future tax levies. Both scenarios reflect increases in the debt service tax levy. Scenario A—public safety bond for par amount$11,825,000 - $1,800,000 of ARPA and solid waste funds would be used to reduce the bond. - We would realize a lower interest cost and total debt service over the life of the bond. - 20-year term issue date 2023. Scenario B—public safety bond for par amount$13,675,000 - ARPA and solid waste funds would be used to reduce debt service levies. - $600,000 per year for three years. - We would realize a higher interest cost and total debt service over the life of the bond. - 20-year term issue date 2023. Park Improvement Bonds (Jim Bell Park and to bring the parks system up to where it needs to be. - Par amount of bonds$12,450,000 - 20-year term issue date 2024 Street projects 2023—2027 - Total par amount of bonds $14,180,000 - 10-year terms City Council Work Session Minutes October 3,2022 Page 2 Council had a lengthy discussion on how to tackle all the upcoming projects. They asked what projects are included in the CIP and the timeline. We also have to keep in mind longterm maintenance. Regarding funding, public safety bonds are subject to a referendum. Park improvement bonds can be issued through tax abatement. The solid waste fund balance is$1.8 -$1.9 million. Council asked for the biggest picture possible. Go back to the 5-year financial plan and look at what's not in there. There are a lot of areas under funded. We are a long way behind in funding current projects without adding more. Council discussed doing infrastructure projects first that have a direct impact on the residents. Council asked how long it would take to get an accurate assessment of funding high level items and how far off are we? Staff noted we have to look at what we have and we need a public works director. It could take a couple months to get a good idea. Council noted we already have a massive debt issued for the city hall building to pay off. We need to determine how we maintain what we have before adding to it. There should be a needs and wants discussion at the council goal setting in 2023. Council recommended looking at what Public Works Director Gehler started with the street maintenance plan and determine the best allocation of money. We need to start telling our strengths and what we do to maintain it. Administrator Gorski asked if the council wants to move forward with the police building. Councilmember Bernhjelm replied no. Councilmember Wilson suggested getting a public works director first and revisit the 5-year financial plan and determine if everything is in there. Talk to legislators that can get us funding. Councilmember Porter stated she sits here to represent the residents. We can't look at wants. This is a huge opportunity for communications to tell our story. She agreed with Councilmember Wilson to get a new public works director and a communications person. Councilmember Wilson stated between 2024 and 2027 there is no doubt the police department will need more space. He supports it, but how we get there is a bigger question. We can't get to the numbers without making life difficult for residents. If residents are asked to choose between roads or a police building, residents will choose the police building. Can we find a middle ground? Councilmember Lien stated the police put the ask out to what they wanted. It started with a fence and the project really accelerated. He supported the idea, but wants to see it happen at the right time. Mayor Hoyt stated we need to spend money in the best way possible. Are projects a want or a need? How do we pay for everything? We are looking at long-term debt and we have to have a plan. The plan needs to have enough common sense so that future councils stay with it. We could have a public safety referendum in 2024. Councilmember Bernhjelm noted we are funding the police department very well and adding staff. We can make do with what we have. Mayor Hoyt stated we have to have adequate funding for maintenance for buildings, streets, trails, general upkeep. Councilmembers Lien and Wilson agreed with hiring a lobbyist to work with legislators to get us funding. City Council Work Session Minutes October 3,2022 Page 3 Direction to staff was to: - Hire a public works director - Assess the CIP with all departments - Hire a lobbyist to work with legislators to obtain funding - Determine maintenance costs for buildings, trails, streets, parks and trees Councilmember Bernhjelm noted we also have the fire station, water tower and salt shed, which are all big projects not accounted for. Mayor Hoyt felt we need to discuss the solid waste balance and Hy-Vee assessments. If funds are not used for solid waste, they need to go back to the residents. Councilmember Bernhjelm noted we don't have a solid waste department anymore, so the funds have to go to projects or pay down the levy. Staff noted $150,000 of solid waste funds was used to pay down the levy for 2023. Mayor Hoyt felt we should not count on the Hy-Vee assessments until all the payments are received. 4. City Administrator Update Workers are pouring curb and gutter on the Spruce Street project. Staff received good comments at the North Creek Greenway open house. The Hwy 50 and Flagstaff intersection open house had good displays and conversations with residents. Staff is working with HKGi on a summary for Jim Bell Park and to do a survey. Staff is working on the 2024 fee schedule. Hydrant flushing is taking place this week. S. Adjourn MOTION by Porter, second by Lien to adjourn at 6:39 p.m. APIF, MOTION CARRIED. Respectfully submitted, Cynthia -Muller Cynthia Muller Administrative Assistant