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1991-02-26 Special City Council Minutes 3£_' t' P' ao J MINUTES OF A SPECIAL MEETING OF THE EAGAN CITY COUNCIL February 26, 1991 Eagan, Minnesota A special meeting of the Eagan City Council was held on Tuesday, February 26, 1991 at 5:30 p.m. in the lunchroom of the Municipal Center Building. Present were Mayor Egan, City Councilmembers Gustafson, Pawlenty and Wachter. City Councilmember McCrea was absent. Also present were Director of Community Development Runkle, Director of Public Works/Engineering Colbert, Director of Parks and Recreation Vraa, Fire Chief Southom, Police Chief Geagan, Director of Finance VanOverbeke and City Administrator Hedges. DRAFT 1991 - 1995 CAPITAL IMPROVEMENTS PROGRAM City Administrator Hedges discussed the proposed five (5) year capital improvements program (CIP) stating that a five (5) year CIP is a planning document that each year actual projects are evaluated and require approval by the City Council. He further stated that CIP documents are regarded as important financing tools by both rating services Standard and Poors and Moodys which is important to the issuance of general obligation bonds. City Administrator Hedges reviewed the grand total of the proposed five (5) year CIP by discussing the ten (10) funding sources and a summary of the type of expenditures by department. He further stated that most of the discretionary spending such as park land Improvements, fire stations, community recreation facilities and expansion of the Municipal Center/Law Enforcement Building are proposed as general obligation bond issues or from the proposed community investment revenue source. The City Administrator's presentation Included an overview of these revenue sources and expenditures along with a discussion on the impact of operational expenditures if the City expands its public facilities according to the proposed CIP. City Administrator Hedges further discussed the public policy issues stating that direction is necessary by the City Council to determine a priority for capital projects and the funding source options that are available for financing public building projects. City Councilmember Pawlenty suggested that the material as presented be categorized by revenue source to assist the City Council in an overall prioritization of capital projects. There is also a request by the City Council to present capital projects by department and, further, that consideration be given to the impact building programs have on maintenance and operations. Mayor Egan stated that no formal action was required and that the City Administrator be directed to categorize the draft capital improvements program for 1991 - 1995 and present further data at the next special City Council work session for consideration. COMMUNITY INVESTMENT FUND Director of Finance VanOverbeke reviewed the proposed policy/ordinance that establishes the use of community investment funds for capital projects. He presented a modification to language that was originally presented in November, 1990 when the City Council first reviewed a policy for the community investment fund and, further, reviewed examples of how much interest would be available assuming various financial impacts for a principal amount of $8,250,000 in the community investment fund. Following a lengthy discussion by the City Council, the policy was generally accepted with the exception of some language that was questioned and will be reviewed with staff by Councilmember Pawlenty. The City Administrator was directed to place the community investment fund on the regular City Council agenda for March 19 for consideration and ratification. ,ply . e-+ 1 1991 GENERAL FUND BUDGET ADJUSTMENTS City Administrator Hedges stated that the Department of Revenue has verified the 1991 HACA reduction, July payment, to be approximately $210,038. He stated that the general fund reduction is 79.9% while the debt levy, major street fund and equipment revolving fund combined is 20.1% of the total reduction. The City Administrator further stated that an amendment to the general fund operating budget in the amount of approximately $167,820 will be necessary to offset this reduction In revenue. The City Administrator presented a budget reduction proposal to the City Council that eliminates six (6) positions including Administrative Intern, Community Development Intern, a Contractual Building Inspector, part-time Fire Inspector, full-time Fire Chief and Parks and Recreation Intern. He further stated that part-time seasonal in Parks and Recreation will be reduced and there Is a correction in the Public Works/Engineering watershed management program. City Councilmembers discussed the proposed adjustments and stated that In order to maintain a healthy delivery of service, it will be necessary to prioritize budget reductions if further reduction in HACA aid is enacted by the legislature. After a discussion of the City Administrator's proposal and anticipated a future HACA aid reduction resulting in more spending adjustments at the local level, there was a general concurrence given to the 1991 budget adjustments as proposed. In a motion by City Councilmember Wachter, seconded by Mayor Egan, all members voting In favor, the City Administrator was directed to place the budget adjustment proposal to amend the 1991 general fund operating budget on the March 5 City Council agenda for official ratification. OTHER BUSINESS City Administrator Hedges reported that the police union which covers police patrol officers has agreed to a settlement, therefore, the Wednesday, February 27 arbitration will be canceled. TLH February 26, 1991 PeA M-O&II Date Clark