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HomeMy WebLinkAboutCCMinutes_2003_07_28 � � 2 Brookings City Council July 28,2003 The Brookings City Council convened in a special planning session on Monday, July 28, 2003 at 2:00 p.m. in the City Council Chambers at City Ha11 with the following members present: Mayor Scott Munsterman, Council Members Doris Roden, Tim Reed, Tom Bezdichek, Julie Whaley, Tom Bozied (arrived at 2:20 p.m. and departed at 3:00 p.m.) and Mike McClemans. City Manager Mike Williams, City Attorney Steve Britzman, and Shari Thornes, City Clerk, were also present. A motion was made by Whaley, seconded by Reed, to adjourn at 5:00 p.m. All present voted yes; motion carried. Budgeting (Lons Term Planning). Michael Williams, City Manager, reviewed the reports that are currently provided to the City Council and determined the following report schedule. Quarterly reports to the Council will include a Staternent af Cash & Cash Equivalents (City General); Investment Report (City General); Budget Analysis Report (City General) (highlight unusual experiences); Enterprise Funds Report (City General — include outcomes); Hospital Board Chair Report; Utility Board Chair Report; and Forecast Statement (Preliminary estimates for upcoming budget). A Debt Analysis Report on city general and utility funds to include debt schedule and the Annual Budget Proposal Packages will be provided to the Council on an annual basis. Discussion: Are the PCS funds, hospital funds, etc, included in the enterprise funds annual audit? Those items have been separated. Everything that is directly under the City Council's authority is reported in the audit. The Utility and Hospital funds are separated. (2:20 pm—Bozied arrived) Quarterly or semi-annual reports from the chair of the Hospital Board, Utility Board, and MultiPlex Board would be very helpful. A detailed report outline should be provided to those entities so they know what items the Council would like to be briefed on. Their reports should include information from their monthly meetings, not just budget items. The City Council did not request any reports on a monthly basis. They would like to hear about anything unusual. Review of City Ends Policy 1: Financial Stability - "Financial Stability—Key Performance Area - 1) The City Manager is prohibited from budgeting or spending that lowers the CitX's Bond Ratin�". Williams said the city wouldn't want to do anything that would lower the city's bond rating. However; a city's bond rating is not measured just by the city's financial picture; it also includes city-wide economic factors. Williams cited two problems with a bond rating as an indicator: 1) the city doesn't have a bond rating; and 2) the city's budget isn't the only thing that would have an affect on a bond rating. Examples of things that would affect a city's bond rating include a varying financing instrument, the level of growth within the community, and stability of the top employers. There was concern that it is a meaningless indicator and there are other ways to evaluate how our city is being managed. There was not a decision to remove it at this time. Debt Reduction (long range ulanning). Michael Williams, City Manager, reviewed a debt analysis and debt schedule for all city general and utility debts. City general has second penny funds obligated for three issues: Swiftel Center, Brookings Public Library, and Larson Ice Center/Performing Arts Center. According to city policy, the second penny revenue is required to be 125% of the principle and interest payments of all bonds. Tota1 debt for City General is $16,928,556 and Utilities is $35,290,000 for a total combined debt of$52,218,576. Analysis of debt to equity was discussed. (Bozied left the meetin� at 3:00 p.m.) Enterurise Privatization (long range Qlanningl. The City Council discussed the Municipal Liquor Store operations and expectations on the investment. Some members said they would like to see it more profitable. If the off-sale operation was privatized could it be handled with an operating agreement and an override charge? There was concern that the city would have to maintain control of the off-sale operation in order to get the override from the sale of all on-sale malt and liquor sales. Allowing businesses to obtain and operate of�sale alcohol sales throu�h 103 operating agreements was suggested. It was noted that state law only allows businesses to obtain three oi�sale licenses in the state. It was clarified that it doesn't matter whether or not the city has control or authority of the off-sale business. The Council's primary concern is a cash revenue basis. The city would still maintain control over on-sale licenses through the use of operating agreements. If the city pursues an operating agreement arrangement for off-sale, the agreement should include a requirement for a scanner to check driver's licenses. Members indicated they are not interested in issuing too many licenses and recommended starting slow. This item will be scheduled for the October planning session. The City Manager will provide information on the legalities for an off-sale establishment operating agreement, input from liquor industry representatives, state purchasing regulations, an analysis of the current market by contacting potential interested parties, and an estimated sale price of the business. Future plans for Research & TechnoloQy Center (long ran�e planning). The City's intent has always been to add on to the Research and Technology Center located near the Swiftel Center. A new Research Park is planned for on 8'� Street and Medary Avenue. The Ron Reed Incubator Center located on Si�h Street houses the Chamber of Commerce, Convention Visitor's Bureau, and Brookings Economic Devetopment Center in addition to start-up businesses on three-year leases and sliding scale rent. This site has become valuable commercial property and the Council discussed selling the building. The R&T Center could be expanded to house more "incubator" startup businesses which the community will need as it grows. A meeting with the primary users was suggested. Would the newly suggested Events Coordinator be housed with Chamber and CVB or be housed with the City? The Mayor's Promotion Ad Hoc Committee has recommended he/she be housed with the City. Housing the Chamber, CVB, BEDC, DBI and events coordinator in one place may be beneficial. Action steps identified: 1) Statement from BEDC on their intent with the enterprise center and a timeline; 2) Place this item on a Research Park Steering Committee agenda to provide a status report; 3) continuation of the grant; 4) projections for the addition (square footage); and 5) appraisal of Chamber building after receiving intent from BEDC. Wiese Park Develonment Cost (long range planning). Michael Williams, City Manager, estimated a total cost of$755,000 for the 90 acres site that includes the R&T Center and Swiftel Center ($10,000-$12,000 per acre). The estimate includes the cost of land and infrastructure improvements (i.e. road, utilities). Pursuing a first-right-of-refusal for the state transportation department property and negotiating a price was discussed. 75% CIP Programs (Senior Citizen Center). The City Council discussed moving forward on a decision for the Senior Citizen Center project. Roden was opposed to the senior citizen center becoming a business component of the municipal hospital. Reed was concerned that one funding scenario showed the cash balance dropping to 9% in 2005 if the downtown and senior center are both done in 2004 & 2005. Bezdichek suggested the City consider expanded use of 25% funds. He was not supportive of the Hospital Board's financial proposal. He recommended the Hospital give $500,000 rather than a $200,000 loan and $300,000 gift. There was concern about additional fund-raising efforts of the hospital in light of recent dialysis unit fundraising. There was consensus to discuss this item at the August Sth meeting and take action at the August 12�` meeting. Adiournment. A motion was made by Reed, seconded by Whaley, to adjourn. All present voted yes; motion carried. Meeting adjourned at 5:02 p.m. CI OOKINGS � G���oF aROO Sc . unsterman, Mayor o����fo?�, :� o . �c: 8R9 : 2S, : B3 :,tQ S'�'f%. �.,•�p 'C � • P o / jy' ;`S ' hornes, City Clerk i"