HomeMy WebLinkAbout3. Minutes of August 13, 1992 Special Work SessionROSEMOUNT PORT AUTHORITY PROCEEDINGS
SPECIAL WORK SESSION
AUGUST 13, 1992
Pursuant to due call and notice thereof a special work session
was duly held on Thursday, August 13, 1992 at 6:30 p.m. in the
Council Chambers of City Hall, 2875 - 145th Street West.
Chairperson Dunn called the meeting to order with Commissioners
Anderson, Edwards, and Wippermann present. Also present were
Executive Director Jilk, Dan O'Neill from Springsted Inc., Mary
Dyrseth from Briggs and Morgan, and John Miller, the Authority's
Economic Development Coordinator.
Executive Director Jilk reviewed the National Guard Bid
Tabulation. Nine bids were received ranging from.$10,433,449 to
$13,141,300. The bids are to be reviewed by the Armory Committee
on August 17. Jilk will meet with the Rosemount Area Hockey
Association on August 19.
Jilk introduced finance and budget discussions. He informed the
Commissioners it was necessary to look at 1993 budget issues.
Dan O'Neill discussed the City's bond rating. Presently, Moody
rates the City "A". O'Neill stated that some --reserve debt
capacity should be maintained for future capital improvements
program items. He also.emphasized the need -fes' additional
commercial and industrial tax base as necessary to maintain.a
good bond rating.
O'Neill advised the Commissioners to enter into projects only if
they made sound business sense. An example of a good business
deal according to O'Neill is leveraging new construction where
some public assistance is needed to qualify for private
financing.
Also recommended by O'Neill was a pre -determined review process
for projects including a credit analysis by an accounting firm
retained by the Port Authority. The Authority should also have
an overall development strategy.
Mary Dyrseth reviewed the 1979 redevelopment plan. The district
terminates in 2001. She indicated the trend among cities is away
from bonding for TIF projects and to do "pay-as-you-go." There
is less cost to the City and less risk. Increment is paid
annually as the developer pays property taxes.
Dyrseth also noted that recent changes in tax increment financing
laws reduced homestead, agriculture, and local government aids.
This money is sent to the local school district and represents an
amount equal to about one-third of the tax increment. This
applies only to new districts.
ROSEMOUNT PORT AUTHORITY PROCEEDINGS
SPECIAL WORK SESSION
AUGUST 13, 1992
Finally, Dyrseth noted that a new TIF district should be
completed only when a developer or user in the proposed district
has been found. This maximizes the amount of increment received
as the life of a district is calculated from its inception rather
than from its first user.
Jilk reviewed the 1992 budget and June 30 trial balance. There
was considerable discussion. Commissioner Edwards requested a
work program with the 1993 budget. Chairperson Dunn wanted
copies of the trial balances or end -of -month -reports as they are
available.
The Commissioners directed the Port Authority's staff to prepare
a draft budget and work program for review at a future Port
Authority meeting.
At 9:00 p.m. Chairperson Dunn declared the meeting adjourned.
Respectfully submitted,
John Miller
Economic Development Coordinator
ROSEMOUNT PORT AUTHORITY PROCEEDINGS
SPECIAL WORK SESSION
AUGUST 4, 1992
Pursuant to due call and notice thereof a special work session
was duly held on Thursday, August 13, 1992 at 6:30 p.m. in the
Council Chambers of City Hall, 2875 - 145th Street West.
Chairperson Dunn called the meeting to order with Commissioners
Anderson, Edwards, and Wippermann present. Also present were
Executive Director Jilk, Dan O'Neill from Springsted Inc., Mary
Dyrseth from Briggs and Morgan, and John Miller, the Authority's
Economic Development Coordinator.
Executive Director Jilk reviewed the National Guard Bid
Tabulation. Nine bids were received ranging from $10,433,449 to
$13,141,300. The bids are to be reviewed by the Armory Committee
on August 17. Jilk will meet with the Rosemount Area Hockey
Association on August 19.
Jilk introduced finance and budget discussions. He informed the
Commissioners it was necessary to look at 1993 budget issues.
Dan O'Neill discussed the City's bond rating. Presently, Moody
rates the City "A". O'Neill stated that some reserve debt
capacity should be maintained for future capital improvements
program items. He also emphasized the need for additional
commercial and industrial tax base as necessary to maintain a
good bond rating.
O'Neill advised the Commissioners to enter into projects only if
they made sound business sense. An example of a good business
deal according to O'Neill is leveraging new construction where
some public assistance is needed to qualify for private
financing.
Also recommended by O'Neill was
for projects including a credit
retained by the Port Authority.
an overall development strategy.
a pre -determined review process
analysis by an accounting firm
The Authority should also have
Mary Dyrseth reviewed the 1979 redevelopment plan. The district
terminates in 2001. She indicated the trend among cities is away
from bonding for TIF projects and to do "pay-as-you-go." There
is less cost to the City and less risk. Increment is paid
annually as the developer pays property taxes.
Dyrseth also noted that recent changes in tax increment financing
laws reduced homestead, agriculture, and local government aids.
This money is sent to the local school district and represents an
amount equal to about one-third of the tax increment. This
applies only to new districts.
ROSEMOUNT PORT AUTHORITY PROCEEDINGS
SPECIAL WORK SESSION
AUGUST 14, 1992
Finally, Dyrseth noted that a new TIF district should be
completed only when a developer or user in the proposed district
has been found. This maximizes the amount of increment received
as the life of a district is calculated from its inception rather
than from its first user.
Jilk reviewed the 1992 budget and June 30 trial balance. There
was considerable discussion. Commissioner Edwards requested a
work program with the 1993 budget. Chairperson Dunn wanted
copies of the trial balances or end -of -month -reports as they are
available.
The Commissioners directed the Port Authority's staff to prepare
a draft budget and work program for review at a future Port
Authority meeting.
At 9:00 p.m. Chairperson Dunn declared the meeting adjourned.
Respectfully submitted,
John Miller
Economic Development Coordinator