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City Council - 04/17/2001 - Workshop APPROVED MINUTES EDEN PRAIRIE CITY COUNCIL WORKSHOP/FORUM TUESDAY,APRIL 17, 2001 5:00-6:55 PM, CITY CENTER HERITAGE ROOMS I&H CITY COUNCIL: Mayor Jean Harris, Councilmembers Sherry Butcher,Ron Case, Jan Mosman, Nancy Tyra-Lukens CITY STAFF: City Manager Chris Enger,Public Works Services Director Eugene Dietz, Community Development and Financial Services Director Don Uram,Management Services Director Natalie Swaggert,Public Safety Services Director, Jim Clark,Parks and Recreation Services Director Bob Lambert, City Attorney Ric Rosow,Recorder Lorene McWaters I. CALL MEETING TO ORDER—MAYOR JEAN HARRIS Mayor Harris called the meeting to order at 5:40 p.m. H. APPROVAL OF AGENDA III. CIP UPDATE City Manager Chris Enger and Financial Services Director Don Uram reviewed the Capital Improvements Plan(CIP)background and process. Best Financial Practices used in the plan include: ■ A fund balance/working capital policy that maintains an adequate revenue stabilization fund(which is made up of excess permitting fees that are set aside to covering future operating expenses) ■ Multi-year financial forecasting that uses a balanced budget model ■ Quarterly financial reporting ■ Debt affordability reviews ■ A five-year CIP that integrates operating costs A capital improvement is defined as a construction project or capital purchase that costs more than$25,000 (set by the Council) and has a useful life of more than five years. Enger described the Capital Improvement Plan as the systematic planning, scheduling, and financing of capital projects. The City's current CIP was developed by staff based on values and direction provided by the Council and went through several iterations with Council input before approval. Enger indicated that capital improvement planning is typically not a task delegated to an advisory group. There are three types of capital improvements: Maintenance—Reconstruction,rehabilitation or restoration of an existing system or facility to full functionality. Support—Expansion of an existing system or facility to meet increased demands. COUNCIL WORKSHOP MINUTES April 17, 2001 Page 2 Expansion—Construction of a new system or expansion of an existing system to meet increased demands or enhance services. Capital projects are divided into three categories based on urgency of need. "A"projects are those that must be completed; `B"projects are necessary,but timing is not critical; and"C" projects are desirable if funding is available. Staff have identified capital improvements through 2005 at$20,512,500, and have identified an additional$4,791,000 in projects beyond 2005, for a total of$25,303,500. Current funding sources include the CIP Revolving Fund, General Fund Tax Levy, one-time revenues (sales of city-owned land), and the Park Improvement Fund. Potential funding sources include the Liquor Enterprise Fund,bonding, City Center Debt Service Fund, a Street Light Utility, and possible Street Utility(which would require passage of legislation at the State level). Projects not currently on in the CIP that may require consideration include: ■ GTA Projects ($6-12 M) ■ Unfunded Transportation Projects ($10 M) ■ Public Safety Training Facility($400,000) ■ Southwest Fire Station($2.5 M) ■ City Center Parking($1 M) ■ Purgatory Creek Recreation Area Entry($2-5 M) ■ Water Park/Community Center($4 M) ■ Parkland Acquisition($2 M) ■ Management Conservation Areas ($2 M) ■ Birch Island Woods/Picha($3 M) ■ Historic Sites Improvements ($1 M) ■ Golf Course($4-5 M) ■ Third Ice Rink($4 M) Youth Athletic Fields ($1-4 M) ■ Golf Course($4-5 M) Total$42.9—55.9 M Uram noted that almost none of these projects were part of the original CIP "A"list. Councilmember Butcher indicated it is important to differentiate between discretionary and necessary projects. Councilmember Case said he would like to review the entire list again and tweak it,if necessary. It was noted that some"A"priority items may not have to be fully funded by the City. Some state funding may be available for Golden Triangle road improvements, and public/private partnerships might help fund historic homes renovations. Councilmember Tyra-Lukens asked if a project that received partial outside funding would be bumped up the list in priority. Enger said that would depend on the timeliness of the funding. Councilmember Mosman asked at what point the City would consider a bond issue. Enger said that would depend on any possible school bond issues and other factors. He said the Council has historically deferred to the school district when they have indicated they need to do a bond issue. COUNCIL WORKSHOP MINUTES April 17, 2001 Page 3 IV. COUNCIL FORUM V. ADJOURNMENT Mayor Harris adjourned the meeting at 6:55 p.m.