Minutes - Council Work Session - 06/19/2012

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Mayor Ramsey stated the question is whether to staff for high times or low times. He asked what the City will do next year when there are no projects to handle. Councilmember Elvig noted the Council is proposing $5 million of road work, which will bring in a lot of revenue to the City through engineering review and project administration. City Engineer Himmer explained the money results from the 15% administrative costs and if the Council is starting $1 5 million of road construction each year, starting in 2013, it will equal $200,000 in administrative fees. If the Council adds other projects, that figure can easily be increased to $400,000 each year. Mayor Ramsey asked what the City does with extra staff during years it doesn't have $1 million in road projects. City Engineer Himmer noted there is also development opportunity with The COR vacant land and depending on what happens with the Development Management team, in -house staff can be used for those infrastructure projects. Mayor Ramsey asked if that is the discipline of City Engineers. City Engineer Himmer stated he was referring to the design and construction of municipal improvements, infrastructure to support The COR development, not site planning or platting. Finance Director Lund presented one -time and short-time funding options included in the proposed 2013 budget and levy. City Administrator Ulrich noted when TIF 4 decertifies, it will bring back $153,000. He explained that 2013 and 2014 are solid in the budget proposed, there will be some erosion in 2015 as TIF districts fall off and Landfill Trust tipping fees are depleted. However, to put it into perspective, the current balance of unrestricted landfill funds is over $2 million. City Administrator Ulrich noted one -time money is being used to fund some expenditures but could be transferred to unrestricted funds like Capital Equipment. Otherwise, within three years, the City will need growth, cutting back additional expenditures, or other revenue mechanisms. Mayor Ramsey stated if property values are starting to rebound, there is a 24 -month lag time before the City sees additional tax money. He asked if the Transit Taxing District will be a separate line item. Finance Director Lund answered in the affirmative, noting it is under Metropolitan Council's "other" line. She explained if the City Council wants to offset it, the general levy would have to be off set by that same amount. The Transit Taxing District will come on line in 2013. Mayor Ramsey stated he would like staff to prepare a plan for road reconstruction so it is known how those projects will be funded in the future. He noted this budget puts $1 million into road reconstruction this year. City Council Work Session / June 19, 2012 Page 7 of 15