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08-13-09 WSITEM 3_1 CITY OF OTSEGO LONG RANGE PLANNING WORKSHOP August 13, 2009 5:30 p.m. Roll Call: Otsego City Council: Mayor Jessica Stockamp, Councilmembers Tom Darkenwald, Dan Scharber, Mark Thorsted and Vern Heidner. Absent: None. Otsego Staff: City Administrator Michael Robertson, Finance Director Gary Groen, Public Works Supervisor Brad Belair, City Clerk Tami Loff, Building Official Harold Leonard, City Planner Dan Licht, City Engineer Ron Wagner and Sewer/Water Supervisor Kurt Niedermeier. Rusty Fifield and Paul Donna of Northland Securities, the City's financial advisor, were present to help facilitate the workshop. Council and staff discussed the following items. FINANCIAL PLANNING Finance Director Groen will revise the debt service information to include equipment replacement as well. GRAVEL STREETS Staff was directed to provide a list prioritizing which gravel streets currently get enough traffic that they should be paved, which gravel streets are expected to be paved as part of future development and which are expected to be gravel for a long time. KADLER INTERCHANGE Council confirmed that the current policy of working toward the official mapping of the intersection was sufficient. PARKS Council and staff discussed the need to establish a park equipment replacement fund. WATER/SEWER FINANCING Gary reviewed the debt service for the water and sewer system. There are currently three years of bond payments in the reserves, even if there were absolutely no new homes or businesses built. This reserve was created in part by past growth and by the Council paying off one set of bonds early. Currently growth is slightly ahead of last year when 80 new housing units were built. Paul Donna of Northland Securities said that in terms of refinancing that interest rates were likely at a low point and were expected to increase in the future. After discussion the Council asked Northland and staff to prepare several scenarios for possible refinancing to discuss at a future meeting. FIRE SERVICES Council reviewed many options for providing fire services. The consensus was that Otsego would not likely have its own department but would be part of a larger regional fire department. There was discussion of how to finance the necessary fire stations, equipment, training and personnel, and how to go from the current situation to the future. POLICE SERVICES Council confirmed that the current system of contracting with Wright County for police service is working well. There was discussion of whether when some population size is reached it might make sense to establish our own police department. After discussion consensus was that such a time is well off in the future. Staff will prepare an updated spreadsheet combining all scheduled debt and equipment replacement costs. With no further business the meeting was adjourned at 8:15 p.m. Michael Robertson City Administrator