Laserfiche WebLink
The remainder of the costs can be covered in the Street Reconstruction fund. Be aware <br />that both the Street Reconstruction and Storm Water funds will likely end up in a deficit <br />position at the end of 2020 in this scenario. The funds look to return to a positive cash <br />position at the end of 2021. <br />Alternatively, the City Council could permanently transfer funds from either the Water or <br />Sewer funds to eliminate any deficits. This is within the City Council's authority as <br />established by state law. <br />Admittedly this is cutting it very close on fund balance. The important thing to <br />remember is that we did not issue bonds for this project. All previous street <br />reconstructions have been financed through bonding. By saving our money and <br />spending it in this way, we have avoided thousands of dollars in interest and bond <br />issuance costs. <br />An alternative is to charge some or all of the change order to the Street Maintenance <br />Fund. That fund is in the same position as the Storm Water fund. It is likely to go <br />negative for year-end 2020, but will get back into the black at the end of 2021. <br />Staff looks forward to hearing City Council thoughts regarding which policy preference <br />we should use as we proceed with the construction. <br />