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<br /> <br /> <br /> <br /> <br /> <br />Council Worksession <br />June 28, 2022 <br />5:00 pm <br /> <br /> <br />Present: Mayor Kari Niedfeldt-Thomas <br /> Councilmember Abdullahi Abdulle <br />Councilmember Graeme Allen <br /> Councilmember Pam Axberg <br />Councilmember Emily Dunsworth <br />Absent: <br /> <br />Staff in Attendance: Devin Massopust, Gina Foschi, Craig Schlichting <br /> <br />Guests in Attendance: <br /> <br />Operational Effectiveness – Examine and Approve Financial Goals and Indicators <br /> <br />Massopust stated staff had a presentation for the Council on Operational Effectiveness, which was one of the <br />Council’s strategic priorities. He noted one of the key goals was to look over the City’s higher arching <br />financial goals and policies for the City. <br /> <br />Foschi reviewed the presentation with the Council and focused on the City’s eight main financials goals. These <br />ongoing commitments were policy driven in terms of General Fund reserves and debt to tax levy ratio; adopted <br />by resolution with no General Fund reliance on LGA; and informal commitments related to debt-free streets, <br />non-tax revenues, the CIP, bonding rating, and comparable cities. The City’s fund balance policy was <br />discussed in further detail. <br /> <br />Councilmember Axberg requested staff provide the Council with a reserve fund balance for 2020 and 2021 <br />without the ARPA funds included. <br /> <br />Mayor Niedfeldt-Thomas asked why the City landed at 35% for its reserve requirement when other cities were <br />closer to 40% or 45%. Foschi stated her assumption was that this was based on the Minnesota State Auditors <br />recommendations and the National Government Finance Officers best practices. <br /> <br />Councilmember Axberg questioned if the City budgeted for an employee vacancy rate. Foschi stated the City <br />did have an employee vacancy rate of 1.5% written into the budget. <br /> <br />Foschi commented further on the City’s debt to tax levy ratio noting the City will limit the amount of property <br />tax levy dedicated to external debt service to less than 15% of the total tax levy. She indicated the Council <br />passed a Resolution that directed staff to remove LGA from the General Fund and to place these funds into the <br />street program. She commented further on the history of the City’s LGA funding. <br /> <br />Further discussion ensued regarding the LGA the City has received over the past 15 years. <br /> <br />Mayor Niedfeldt-Thomas supported the City Council sending a letter to local legislators regarding how the