City Council Worksession

Watertown City Council Work Session Mayor Steve Washburn Lindsay Guetzkow Adam Pawelk Michael Walters Dan Schuette 11/23/2021 - Minutes 1. Call To Order And Roll Call Mayor Steve Washburn called the Watertown City Council work session to order at 5:33 p.m. on Tuesday November 23, 2021, in the council chambers of City Hall. Council Members Present: Washburn, Dan Schuette, Lindsay Guetzkow and Adam Pawelk. Staff Present: Administrative Services Director Lynn Tschudi, City Administrator Jake Foster, and City Engineer Andrew Budde. Guest: Tammy Omdal with Northland Securities 2. New Business 2.I. Financial Planning Services Discussion: Northland Securities - Tammy Omdal Tammy Omdal said she is in front of council to provide background on the long-term financial management plan and utility study that Northland Securities has completed for the City in the past. She said at the time the first study was completed in 2013, the wastewater treatment facility was a long-term plan. When the utility study was completed in 2017, the wastewater treatment facility was in the CIP and the rates were adjusted to plan for that project. Omdal said she met with staff and Bolton & Menk in October to discuss the increase in the cost of the wastewater treatment facility. Omdal said the importance to complete a full study is to capture the increase in costs, the new homes paying into the utilities, and the remaining homes to be built. Mayor Washburn asked how long out into the future the new study projects rates and debt. Omdal said the study will project ten years into the future. Pawelk expressed that he feels the reinvestment in the study can add up which caused his reservation to agree to the study initially. Omdal reiterated that the $8,800 is a full scope of work and it is a not to exceed amount and the City will be billed for actual time spent on the study.  Mayor Washburn asked how long out into the future the new study projects rates and debt. Omdal said the study will project ten years into the future. Pawelk expressed that he feels the reinvestment in the study can add up which caused his reservation to agree to the study initially. Omdal reiterated that the $8,800 is a full scope of work and it is a not to exceed amount and the City will be billed for actual time spent on the study. Guetzkow said she feels more comfortable after hearing Omdal’s explanation of the process that the full study would make more sense. Washburn asked Omdal if she has seen movement on the interest rates in the market. Omdal said she is seeing the 1% on the PFA rates and other rates are at historic low levels which means there is only one way for them to go. Pawelk asked what the timeline is for the project. Omdal said Northland does not treat the models as proprietary. Staff would be able to update those models for the small amounts of information in the future. 2.II. 2022 Budget & Levy Update Administrative Services Director Tschudi presented the updated budget numbers for council. The preliminary levy was a 6.30% increase from 2021 and is now down to 5.49% after final numbers have been entered for insurance and other known expenses. Tschudi reviewed the budgets for the Enterprise and EDA funds which had no changes since the previous work sessions when these were discussed. Council discussed the difference between the EDA levy and the General Fund levy. Washburn asked for statistics on the Watertown Wi-Fi usage. Tschudi said she has not been successful with this request from MetroNet, but she will continue to request. Foster said he will reach out to the vendor contact. Tschudi summarized changes made to the Capital Improvement Funds per council direction at the October 12 work session. Council discussed the fire department ladder truck. Washburn asked how a ladder truck is paid for in the joint powers agreement with nearby cities. Tschudi said there are no joint powers agreements with neighboring cities rather all cities rely on each other for mutual aid. 3. Adjournment Mayor Washburn adjourned the work session at 6:17 pm. 309 Lewis Avenue South; P.O. Box 279, Watertown, MN 55388 __________________________________________________________ Steve Washburn, Mayor  Steve Washburn, Mayor ATTEST:__________________________________________ Lynn Tschudi, Admin. Services Director