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City of Centerville <br />Council Meeting Minutes <br />June 24, 2020 <br /> <br />utilize funding in excess of the 50% of the City’s required reserves for improvements. Mayor <br />Love asked if the figures took into account and increase in the tax levy. Administrator Statz stated <br />that the table is only addressing known areas that will have increases or decreases that will affect <br />the budget and simply could affect the tax levy. Discussion ensued regarding the levy and how it <br />is derived, new homes and businesses and tax rate. Mayor Love stated that he wants to be reassured <br />that the City can still move forward with some of its goals during this vital time. Mayor Love <br />reported that the League of MN Cities Insurance Trust increase is primarily due to PTSD. <br />Discussion ensued regarding an intern, individual from a government class, etc. and having <br />specific things for this individual prior to hiring/stipend. Consensus was that Council needed to <br />remain being fiscally responsible during this difficult time. <br /> <br />Discussion ensued regarding the CARES Act, distribution, appropriate accounting of <br />expenditures, assisting local businesses affected by ramifications of COVID-19. Council Member <br />Lakso was concerned about the unemployment rate, Council’s attempt to keep funding as steady <br />as possible but continuing to move forward with those items that needed attention and that were <br />within budget. <br /> <br />1. Fund Balance Policy and City Hall Renovation Finance Plan <br /> <br />Finance Director DeJong stated that both of these issues relate to each other but that he would <br />discuss the Fund Balance Policy at this time. Finance Director DeJong stated that the City’s <br />Finance Plan currently states that the City, by State Statute, must retain 40-50% of their <br />expenditures for the upcoming year. He stated that the City’s has been for the past few years <br />retaining closer to 60%. He stated that it had to do with the methodology for the calculation and <br />the figures that are utilized. He explained that the City has approximately $178,000 above the <br />state requirement and asked if Council desired to change the current policy of retaining 40-50%. <br /> <br />Lengthy discussion ensued regarding being conservative, having additional funds on hand for <br />emergencies similar to COVID, etc. Administrator Statz stated that State Statute stated that you <br />should not exceed the 40-50% and he stated that the City has for years. <br /> <br />Consensus of Council was to modify the current policy regarding the methodology for calculation <br />of the required retainage allowing for a more conservative approach gaining additional reserves <br />from year to year. <br /> <br />Administrator Statz stated that Staff would modify the existing policy and bring it back for Council <br />consideration. <br /> <br />III. RECESS <br /> <br />Mayor Love stated that Council would reconvene the work session following the regularly <br />scheduled Council meeting that there would be a seven (7) minute recess prior to commencing the <br />Regularly Schedule Council meeting. <br /> <br /> <br /> <br />Page 3 of 11 <br /> <br /> <br />