Finance Comm Minutes 08-13-2019 - Laserfiche WebLink

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Finance Commission Minutes August 13, 2019 Page 7 of 9 wondered if there was an opportunity to soften the blow and do one final transition and use some of the existing funds to offset the levy a little bit. He asked if the $285,000 number the Commission was looking at in the EAB current or is there a number that staff projects the fund to be at in December 2019. Mr. Miller explained that is the number at the end of 2018 and he indicated he did not have a projection for 2019. For the first six months the city is trending as expected and the expectation is in 2019 the Cash Reserves would be drawn down by $340,000 because that is what was programmed into the 2019 budget. Commissioner Harold noted at the end of 2019 the city would be at a deficit below the minimum target of the General Fund by approximately $60,000. Mr. Miller indicated that is true with the caveat that there are a lot of moving pieces to a very complex General Fund budget and that is only through the first six months. Commissioner Harold thought if the city is farther along in the process and staff felt there might be some other reserves then he thought to use it to soften the blow, so to speak, on the levy might be appropriate. Commissioner Murray indicated looking at the 12.8 percent increase he was choking on that number and is not reasonable. He was also aware that Ramsey County is going up by ten percent. He noted taxes are paid out of current income and current income is not going up that much so if the city could hold it down to somewhere close to inflation that would be more palatable to him. Chair Hodder remembered that discussion about doing things more gradually, particularly with restoring funds. There was talk about the pavement management fund specifically, which was putting a little bit aside, so the fund does not completely bottom out. He thought in this case that Commissioner Harold’s point is well taken. He wondered if there was a way to soften that blow so the city is not seeing the increase all at once. Commissioner Murray thought a three percent increase would be more reasonable. Commissioner Harold thought there was somewhere in the packet where it outlined the new initiatives and had separate dollar amounts for those as well as the cost of living increases and another existing program increases. He thought unless there was talk about removal of the new programs or budget cuts the city is pretty much stuck at the $600,000. If the General Fund does not have any cash reserves at the end of the year the city is stuck at the $340,000. He thought for the median homeowner the increase would be close to five percent. Mr. Miller stated the Commission can be as specific as it wants in a recommendation to the city Council or the Commission could be more policy driven.