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BUDGET WORKSESSION <br />CITY COUNCIL <br /> CITY OF RAMSEY <br /> ANOKA COUNTY <br /> STATE OF MINNESOTA <br /> <br />The Ramsey City Council conducted a budget worksession on Monday, November 24, 1997, at <br />the Ramsey Municipal Center, 15153 Nowthen Boulevard NW, Ramsey, Minnesota. <br /> <br />Members Present: <br /> <br />Mayor Thomas Gamec <br />Councilmember Carolyn Beahen <br />Councilmember Sheila Beyer <br />Councilmember Gerald Zimmerman <br /> <br />Members Absent: Councilmember Natalie Haas Steffen <br /> <br />Also Present: <br /> <br />Acting City Administrator Linda Waite Smith <br />Finance Officer Jessie Hart <br />Police Chief David Gustafson <br /> <br />CALL TO ORDER <br /> <br />Councilmember Beahen called the budget worksession to order at 6:53 p.m. <br /> <br />COUNCIL BUSINESS <br /> <br />Finance Officer Hart stated that following conversation at the budget worksession on November <br />3, 1997, she researched issuing debt for the street maintenance program - what we can and <br />cannot do. She talked with Bob Thistle of Springsted and he has a wonderful presentation on <br />"Municipal Bonding Essentials" which goes into not only the issuance of debt, but also how to <br />plan for the programs that require the debt. She presented some dates that Mr. Thistle is <br />available. Ms. Hart continued to explain that to issue debt for the street maintenance program <br />would require issuing general obligation improvement bonds which require at least 20% of the <br />funding for debt repayment coming from special assessments. To issue debt that is supported <br />wholly by taxes would require the approval of the majority of the voters voting on the question at <br />a general or special election. <br /> <br />Mayor Gamec commented that if we bond for street maintenance, we would still have to assess <br />out $70,000. <br /> <br />Ms. Hart agreed and said she recommends keeping the street maintenance program status quo for <br />1998. If we assessed as one sealcoating and one overlay, it would save us a cost of about $500 <br />per project. The glitch we are up against is if it's a current expense or not. The City's Charter <br />specifically states that "Except as provided in Sections 7.11 and 7.12, no obligation shall be <br />issued to pay current expenses". However, the Charter could be amended. <br /> <br />Councilmember Zimmerman asked if part of this problem is because we cannot use TIF. <br /> <br />Ms. Hart responded that we have been using interest earnings of TIF up until July of this year. <br />That's what we have been using to help fund the street program. It's been a liquid program and <br />Budget Worksession/November 24, 1997 <br /> Page 1 of 2 <br /> <br /> <br />