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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