CC_Minutes_2009_1123 - Laserfiche WebLink

Home

Regular City Council Meeting Monday, November 23, 2009 Page 14 Councilmember Ihlan suggested using funds from existing reserves, taking from one savings account to another, to potentially decrease levy-supported budget and take some pressure off the taxpayer. Mayor Klausing opined that this money was dedicated to capital replacements. Councilmember Ihlan opined that this money was already in reserve and could be applied toward capital replacement. Mr. Miller clarified that staff was suggesting that the City Council levy $450,000 for vehicle replacement, the actual 2010 need, attempting to establish money for capital replacement, not building up reserves. Mr. Miller further clarified that there was no money in the Vehicle Replacement Fund other than in the Fire De- partment for police, street, or park maintenance vehicles, as all vehicle purchases had been suspended in 2009 as there was no money and there would remain no money unless re-appropriated for 2010. Councilmember Ihlan suggested that her previous understanding was that the pro- posed budget intended to put money in those sinking funds, and if that was the in- tent, that money could take pressure off the tax levy, allowing the City to use some non-restricted reserves and put them in those accounts. Councilmember Ih- lan suggested another option to consider using reserves toward capital expendi- tures, but opined that she didn't have enough information about specific capital expenditures to allow her to make a suggestion of how much should come out re- serves. Councilmember Roe noted, in looking at use of reserves for capital expenditures, the status of the City's ten year Capital Investment Plan (CIP) currently funded substantially under projected needs; and cautioned that if monies were not saved in this and subsequent budgets, it would put the City even further behind by defer- ring those needs, ultimately costing more and making the situation worse down the road. Mr. Miller concurred with Councilmember Roe's assessment; opining that one of the reasons staff had advocated so strongly for the BFO process was based on the City's continued path of fiscal unsustainability in the last seven out of eight years; and referenced a previous memorandum provided to the City Council where staff had detailed the previous $14 million in reserve to fund vehicle, equipment, and park improvements, with that fund now diminished to $6 million by using those reserves in past budgets, not correcting the basic structure. Mr. Miller opined that, in aggregate, the City had a strong reserve fund; however, staffls main concern was in the public safety realm, with the City currently in a weaker position than 3-5 years ago. Mr. Miller noted that discussions have con- tinued for several years, but staff had brought the memorandum to the City Coun-