Agenda - Council - 11/27/2001 - Laserfiche WebLink

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I I I I I I I I I I I I I I I I I I '1 Councilmember Kurak stated that the one concern staff had is that they did not war'to deplete the excess fund, which is why staff recommended allowing the use of 50 percent of the excess funds. She noted that even if the City were to spend the $847,539.75 for the 2002 budget there would still be over $500,000 in excess funds. Councilmember Hendriksen stated that he has objected to the purchase of the equipment items because there seemed to be a scheme to pass the costs onto citizens, but if they are going to buy the equipment out of the Equipment Revolving Fund then he is all for it. Councilmember Anderson inquired if they purchased all the equipment and utilized the interest earnings would there still be adequate excess funds left in the account to be prudent. Finance Officer Lund replied that there would be $500,000, plus the amount of interest earnings for 2001. Motion by Mayor Gamec, seconded by Councilmember Kurak, to direct staff to amend the policy as discussed and bring forward for Council approval. Further discussion: Councilmember Kurak inquired if the amount permitted to be used should be set at 50 percent. In her opinion she did not know that the amount should be restricted to 50 percent, but felt that some excess funds should be left in the account. Councilmember Hendriksen replied that he did not agree. He felt that if there is 1.2 million is excess than the City should be' able to spend that money if necessary, especially when they will be putting money back in the Equipment Revolving Fund as part of the 2002 budget. Finance Officer Lund noted that as part of the 2002 budget $90,232 will be put back into the Equipment Revolving Fund. Mayor Gamec stated that he felt that the 50 percent would assure that there is adequate funds for future purchases. Councilmember Anderson stated that if they were to establish the amount at 50 percent they would need to take on some equipment certificates for 2002. Councilmember Kurak stated that she firmly believed that they should spend the money out of the Equipment Revolving Fund to purchase the equipment. She stated that she did not want to in-debt the citizens of Ramsey when there is money available in a fund. Councilmember Hendriksen suggested that the policy permit using 50 percent of the interest earnings, unless authorized by a unanimous vote of the City Council. Mayor Gamec stated that he would agree with paying for all of the equipment out of the fund for this year, but in the future it should be restricted to 50 percent of the excess funds. Finance Officer Lund replied that the Council would be creating a policy and then disregarding it for this year. Mayor Gamec suggested having staff work on the policy and bring it back for Council consideration. Councilmember Zimmerman recommended that staff review the Council minutes in 1993 to see what transpired when the ordinance was adopted. Motion was withdrawn. Motion by Mayor Gamec to recommend that the City Council direct staff to use the necessary funds from the Equipment Revolving Fund to make the said equipment purchases as presented to Finance Co'mmittee/N°vember 13, 2001 Page 5 of 6 -49-