By MaryHelen Swanson

The North Branch City Council is forever working on city business. Hardly a week goes by when they are not in chambers either at one of two regular monthly meetings or a myriad of special worksessions.

Last Thursdayís worksession began with plans for a volunteer appreciation dinner being put on by the council members for those who give so much to the city, such as the firefighters.

The council is offering some 85 people a pig roast and trimmings at their own expense. Besides each bringing part of the meal, the councilors and mayor will do the serving ... and clean-up.

Other issues discussed last week included whether or not the city can operate without equipment certificates for its major purchases, such as dump trucks and squad cars.

The council members have asked if the city could get away from this practice.

Part of the problem, noted Mayor Gloria Karsky, is that the city sometimes ends of paying for something no longer in use.

The equipment certificate is similar to using a credit card, noted city finance director David Stutelberg. Therefore simply stopping use is not going to rid the city of financial problems.

His example: You used a credit card to buy gas, and then you said, ìIím not going to charge gas anymore.î

But you still have to pay the credit card bill. And thatís what the city is doing.

Stutelberg recommends the city continues using equipment certificates.

But many of the councilors think it would be best to wean away from it.

Councilwoman Amy Oehlers said the city could start planning ahead for purchases and levy each year, working away from the need for equipment certificates.

Councilwoman Theresa Furman agreed it was a good idea.

The council members thought there should be some guidelines or a policy for tightening down on the certificate dependence.

Stutelberg said he just opened a revolving fund from $89,000 that was leftover in last yearís budget for purchases.

It was thought that perhaps during budget time, departments could add something to the revolving fund to build it up for major purchases.

Stutelberg said he would work with the council on a way to work away from the certificates.

Debt

The council also talked with financial consultant Tracy Walsch about the cityís debt. As of last December 31, NB had long-term outstanding debt of $45,066,589.

Of that debt, 21 percent is counted against the legal debt limit. The debt subject to this debt limit consists of $1.6 in General Obligation Bonds for the fire hall, $7 million in lease revenue bonds for the ESSBY project and $917,640 in equipment certificates. Sixty-four percent or $28,995,000 of the cityís debt has been issued within the last two years.

It was used to fund street and utility projects, the ESSBY project and the construction of the wastewater treatment plant.

Still, the cityís auditors have concluded that the city is not carrying too much debt.

Walsch asked if the city will have to start budgeting to pay the $7 million of debt for the ESSBY project. This debt must be repaid in 2009.

The council will have to declare how it is going to pay for that, Stutelberg said, adding that theyíd have to start this year.

ìIt will be painful,î he said, ìbut it has to be done.î

There are options, he said, including spreading the cost out over time.

But, he warned, the council does have to decide how much housing will be needed to address this.

Stormwater plan

The council also looked at a storm water program with a price tag of $4.9 million. Some of the items in this plan are legislated, it was noted.

Funding sources, said an engineer from WSB, include the General Fund, stormwater utility, developer contributions, special assessments and bonds.

Other ways to pay for the projects in the plan include increasing storm utility fees, creating trunk fees for new development and increased general tax revenue (expanding the costs to all parts of the city, not just those using city water.

City Engineer Julie Dresel said the city has been talking about a stormwater utility fee for years. ìNowís the time to do it,î she said.

The plan is part of the 20-year big picture for storm sewer, roads, etc., noted City Administrator Joe Lynch. This is so the council can make long-term decisions.

TDR

The council also talked briefly about a transfer of development rights program which would allow landowners in the more rural areas of the city to preserve greenspace while allowing others to purchase development rights from them and create more dense housing.

Chisago County has started such a program in the Chisago Lakes school district.

Referendum for parks

Finally, last week, the council discussed a referendum for park bonds to build parks the Wildridge and Williams parks.

Stutelberg noted that the city has been levying for several years so that the bond issue wouldnít have to be so great. They also talked about whether this year would be good, if the school district decided to run an operating referendum too.

Planning Director Al Cottingham said without bonding for the projects, it could take up to 12 years to complete these projects.

It is estimated that it will cost $2.25 million to complete the Wildridge and Williams parks.