07-13-2015 Council Minutes - Laserfiche WebLink

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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, July 13, 2015 7:00 o'clock p.m. Hoffman noted GASB No. 68 went into effect in 2015, which requires that government entities report a net pension liability for their allocation of the state -administered pension plans. The current draft PERA report shows the City of Orono's liability is $1.43 million for general employee pensions and $2.6 million for police and fire pensions. Orono also received the GFOA Certificate of Achievement for Excellence in Financial Reporting received in 2013. McMillan indicated she has two housekeeping items regarding the report. McMillan noted there is likely some incorrect wording under Item No. 17 in the report and that the fire service contract listed Wayzata instead of Long Lake. McMillan indicated the City Administrator has the changes and can provide those to Ms. Hoffman. Walsh asked what the underfunded portion is relating to the pensions Hoffman stated it is $5.6 billion for the State of Minnesota and that the City is only required to contribute to its pensions what is dictated by the state. Orono's liability is $1.43 million for general employee pensions and $2.6 million for police and fire pensions. Hoffman stated Orono has been contributing what they are required to every year by the state and that GASB No. 68 requires government entities to report a net pension liability as part of their audit. McMillan thanked Michelle Hoffman and Clifton, Larson for their work on the audit. McMillan noted Orono has a long tradition of being fiscally conservative, which has helped to keep the City's tax rate low. PUBLIC COMMENTS Gabriel Jabbour stated since he left office, he did not get involved in elections, but that he has watched this new City Council over the past six months and has become concerned about the interactions between the Council Members. Jabbour stated the last Council meeting was extremely disturbing to him. Jabbour stated the City of Orono is only as good as its benefactors and that over the years thousands of acres have been donated to the City. In addition, over the years the City of Orono has developed its own special brand, which he attempted to protect while in office. Jabbour indicated he also has spent a lot of his own personal money to keep that brand going through the years and that he sees it becoming diminished given the squabbles and accusations that are happening at the City Council level, which are really inappropriate. Jabbour stated he understands the burden the City Council has and the calls that the Council Members receive. Jabbour stated the City Council should think twice about how they approach things in the future. Jabbour stated the statement made at the last Council meeting about potential litigation was totally presumptuous since nothing is definite until it happens. Jabbour stated he would like the City Council to think about the value of the Orono brand and the value of the community. Jabbour stated he is seeing tens of millions of dollars in good brand being diminished. Jabbour stated Orono's brand has helped make Orono a success, which in turn has helped attract more successful people, and that people do not want to be in a mud -slinging environment. Jabbour stated in his view the City Attorney should have stepped forward in a situation like that. Page 5 of 28