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Attachment A Finance Commission Minutes June 14, 2022 Page 4 of 4 136 Chair Davies asked if staff felt that 2022 was going to end up in a deficit relative to the budget. 137 138 Ms. Pietrick stated she hoped not. She explained there was a lot of turnover in various 139 departments, more than she has encountered in her experience elsewhere. But, it takes time to 140 fill those jobs so there are some savings on the personnel side. It is not occurring in every 141 department but the City is seeing people leave for other opportunities elsewhere. Also, the 142 supply chain is interesting. She noted the City ordered the 2021 City plow trucks that were 143 delivered ten months after they were ordered and staff is actually in the process of getting 144 Council approval to order the 2023 vehicles that are in the CIP plan, hoping they arrive in 2023. 145 Staff builds a budget with the best estimates possible but the City does not pay for the product 146 until it arrives and that can cause some fluctuations. The City also has budgeted for full 147 employment. 148 149 Commissioner Bester indicated the golf course financial summary also has some problems. 150 Ms. Pietrick indicated she will look at all of the spreadsheets for inconsistencies and issues. 151 152 Chair Davies asked staff to review how it plans on getting the water and sewer funds out of the 153 red. 154 155 Ms. Pietrick indicated the sewer fund is not in the red yet. She reviewed the steps the City will 156 be taking to help the water fund. 157 158 Commissioner Bester presented his budget observations and suggestions to staff and the other 159 Commissioners. The observation is that our audited financial statements show a gain of 17.9% 160 in 2021, which seems higher than necessary to stay healthy. Does this present an opportunity to 161 carefully look at the levy for 2023? 162 163 Mr. Trudgeon asked if Commissioner Bester was taking all of the funds and calculating out what 164 that net gain is because there are numerous funds that are restricted. He explained the 165 Community Development Fund can only be used for building permit costs, as well as some of 166 the other funds like the Utility fund. Grants may offset the use of levy dollars but need to be for 167 a specific use so he asked if Commissioner BesterÓs comments factored out all of the restricted 168 fund accounts. 169 170 Commissioner Bester explained the restricted funds were not factored out. 171 Mr. Trudgeon explained those numbers cannot be used for levy reductions, which is his point. 172 He noted that maybe Commissioner BesterÓs suggestion about mapping the funds may leave a 173 much smaller number, which can actually be utilized for levy reduction and, because they are 174 restricted, they cannot do it because it is State Law. He indicated those are things they have to 175 be aware of and maybe there needs to be further discussion on this. 176 177 Ms. Pietrick indicated within the financial statement there are funds that get rolled up, which the 178 City does not budget for. She explained she map the 2021 budget and identifying those funds the 179 City does not budget. 180