HomeMy WebLinkAbout02/21/1995 Work Session
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City of Springfield
Work Session
MINUTES OF THE WORK SESSION OF
THE SPRINGFIELD CITY COUNCIL HELD
MONDAY, FEBRUARY 21,1995
The City of Springfield Council met in Work Session at Springfield City Hall, Jesse Maine Room,
225 Fifth Street, Springfield, Oregon, on Monday, February 21, 1995, at 6:05 p.m. with Mayor
Morrisette presiding.
ATTENDANCE
Present were Mayor Morrisette and Councilors Beyer, Burge, Dahlquist, Maine and Shaver.
Councilor Walters was absent. Also present were Assistant City Manager Gino Grimaldi, City
Recorder Eileen Stein, City Attorney Tim Harold and members of the staff.
1. Arts Commission Application
Arts Commission staff liaison Kathy Jensen provided the staff report. A vacancy exists on the
Arts Commission due to the term expiration of David Gibson in December, 1994. The vacancy
has been advertised twice. One application has been received from Mr. Reid Stewart. Ms. Jensen
reviewed Mr. Stewart's qualifications.
Councilor Burge commented on Mr. Stewart's qualifications and indicated he would be an
excellent addition to the Arts Commission.
It was Council consensus to appoint Mr. Stewart to the Arts Commission. The appointment would
be ratified during the ~egular Meeting later in the evening.
2. 1994 Annual Financial Report and Management Letter
Finance Director Bob Duey presented the staff report. Mr. Duey reported the annual audit is
complete and was prepared by the city's independent auditors, Grant Thornton. Mr. Duey
introduced Mr. Neil Erickson of Grant Thornton who reviewed the financial report and
management letter.
Mr. Erickson indicated that the audit produced another unqualified "clean opinion" and commented
that the Council should be proud of this continuing achievement. He highlighted several areas of
the financial report and management letter.
Mr. Erickson discussed the outstanding debt of the McKenzie-Willamette Hospital Facility
Authority as a result of borrowings that occurred by the hospital through the Facility this past
year. He answered Council questions about the remote possibility that the city could be held
responsible for the outstanding debt. He indicated that repayment of the debt is the responsibility
of McKenzie-Willamette Hospital and suggested that the Council simply monitor conditions under
which the hospital's financial condition could be impacted.
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Work Session Minutes
February 21, 1995
Page 2
Mr. Erickson discussed the balance sheet figures and noted changes from last year. He indicated
the figures show the city is in sound financial condition.
Mr. Erickson discussed the unfunded liability associated with conversion of the firefighters to the
Public Employees Retirement System (PERS) and reviewed past Council decisions with regard to
the creation of this liability and how this obligation would be met in future years.
Councilor Shaver asked about the city's current "A" bond rating and asked what could be done to
raise it even higher. Mr. Erickson responded that it as high as it can be for a city the size of
Springfield. He indicated that Portland's bond rating is "AAA" which has been achieved, in part,
due to the size ofthat city. Mr. Erickson discussed recent trends in oversight of the municipal
bond market by the Securities and Exchange Commission (SEe) as a result of the recent default
and bankruptcy filing of Orange County (California).
ADJOURNMENT
The meeting was adjourned at 6:55 p.m.
Minutes Recorder - Eileen Stein
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Mayor
Attest:
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City Recorder