07-12-2010 Council Minutes - Laserfiche WebLink

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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, July 12, 2010 • 7:00 o'clock p.m. (4. 2009 COMPREHENSIVE ANNUAL FINANCIAL REPORT, Continued) Murphy asked if Larson Allen has any opinion or data on whether a $1.2 million debt service is reasonable for Orono and how Orono compares with other comparable cities with their debt service. Popenhagen indicated for the City of Orono, the amount of outstanding debt is lower than other comparable cities. Larson Allen does not foresee a problem with that amount of debt in the years going forward due to a strong financial base. Franchot asked whether the funding status on unfunded accrued liabilities is a significant issue. Popenhagen stated it is usual not to have it funded. Funding for this type of liability requires a separate irrevocable trust set up between the plan partners. The city uses the pay as you go method for this liability. Franchot asked if this is the type of issue that Duluth and the City of Minneapolis are currently dealing with. Popenhagen stated it is somewhat similar to that but that those specific issues relate to pensions. Popenhagen noted it is something to keep an eye on but it is not a serious issue at the present time. • White noted Orono is one of the lowest taxed cities in Minnesota due in large part to keeping expenses low and maintaining the same number of office personnel for the past 12 to 15 years. McMillan commented that she appreciates the recommendations provided for intemal controls and suggested that the City Council look at those more closely to see whether they can be implemented. McMillan stated she would also like the City Council to revisit their investment policies. Murphy stated he is pleased that this audit has been completed on time for the first time in three years and that it speaks well to Ron Olson and staff. LMCD REPORT — ANDREW MCDERMOTT, REPRESENTATIVE McDermott reported that the LMCD has cancelled some of their summer meetings due to limited activity. There are two major agenda items this year. The Wayzata Yacht Club is looking to change some of their boat slips and dockage. In addition, the Carlson property in Minnetrista will be subdivided in the near future and there are some dock issues that will need to be reviewed in connection with that subdivision. The LMCD received a proposal approximately one month ago requesting permission to operate a general store on the lake out of a pontoon. The LMCD will be looking into whether that type of operation will be approved. Lake Geneva allows a similar activity. Murphy asked whether the LMCD has a position on the Chaudrey matter in the state legislature. McDermott stated it appears that someone associated with Chaudrey participated in the Pro Bass • toumament and that he is the one pushing for the elimination of the LMCD and also the White Bear Lake group because he felt it was duplication to have to go through both bodies. The LMCD has not had any serious conversations about the matter at this point in time. Page 5 of 16