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Zumbrota, MN
Bridging the Past and the Future

April 26, 2001 Special Council Meeting Minutes





Pursuant to due call and notice thereof this special meeting of the Zumbrota City Council was called to order by Mayor Rich Bauer at 6:00 p.m.  PRESENT:  Councilmembers David Benson, Betty Jo Grothe, Sue Lewison, Deb Wilkinson.  Others present:  City Administrator Ron Johnson, City Accountant Mary Rohe, Community Development Director Tricia Hinckley, Public Works Director Rick Lohmann, David Drown and Elizabeth Blakesley, (David Drown Associates), Paul Qualy.


The purpose of this special meeting was to conduct Capital Improvements Planning with David Drown, David Drown Associates.


Mr. Drown discussed the importance of capital planning, wherein cities list their needs, look at policies, and analyze the financial impact of undertaking projects.  He received a list of potential projects from staff, and built a computer model showing the impact of these potential projects.


He completed the following comparisons/analysis:

            -Zumbrota's tax capacity vs. comparable cities (with and without TIF)- favorable

            -Valuation distributions within Zumbrota

-Revenue sources (LGA, HACA, property tax levy, etc.)- Zumbrota's levy is lower, therefore, favorable

            -Tax rates- favorable

            -Sewer charges- favorable

            -Debt per capita- favorable

            -Cash on hand- 13 months of operating expenses available- excellent

He stated that this analysis shows that the city is in good financial condition.


He then completed a "what if, then what?" analysis of several projects showing what the effect of a project would be on the city's tax rate, sewer and/or water rates, debt/capita, and levy.  These projects included the West Avenue (2nd St to 5th St) reconstruction, water booster station, wwtf rehab, subdivision development (cost paid for by developer w/out city financing and with city up-fronting the costs), and fitness center. 


He summarized by stating that the City Council can financially clearly handle moderate growth, and is in a position to continue to make major investments in the development and rehabilitation of the city.  He recommended that the city consider adopting SAC (sewer availability charges) and WAC (water availability charges) charges to assist in financing growth.  


Mr. Drown stated that he would provide a written summary of this presentation.


Mayor Bauer adjourned the meeting at 8:23 p.m.




                                                                                       Ronald S. Johnson, City Administrator


City of Zumbrota; 175 West Avenue; Zumbrota, MN 55992