Minutes - Council Work Session - 08/28/2012

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and capital equipment requests equal $463,000. Finance Director Lund then presented the EPA levy of $104,466 and HRA maximum levy of $328,567. The Council determined to first discuss the 2013 Capital Outlay Budget. Councilmember Wise asked if the police cages cannot be recycled. Police Chief Way explained that when switching vehicles, some of the old equipment does not fit but they will reuse whatever is possible. In addition, the Department may need to do without until drug forfeiture funds are available. Finance Director Lund noted squad cars and Public Works trucks equal about $50,000, the mega mower is $86,000, and the second year of the fire truck is budgeted. She stated the $108,000 telephone system was removed from the budget. Councilmember Strommen suggested looking at a five -year average so it can be determined what is atypical for annual costs. She asked if there are other items, such as the telephone system or plow truck, where there could be an unbudgeted expense as a result of a break down. Mayor Ramsey stated if the fire truck is taken out, it is $150,000. Councilmember Strommen stated she would like a sense of what is being proposed this year when compared to an average base annual budget. Finance Director Lund reviewed totals for the past four years, estimating an average of $175,000 to $200,000. Mayor Ramsey noted if $200,000 is expended annually, the fund will be exhausted in two years. Finance Director Lund stated that is correct because revenue has not been over expenditures. She explained how equipment purchases were funded in the past and levied to the taxpayer. Mayor Ramsey noted that remains the same, because these expenses are from the General Fund. Councilmember McGlone raised the option of leasing a mower to stretch out the cost and save money. Public Works Superintendent Riemer stated that is an option and he could get those dollars for the Council's consideration. He advised that the current megamower is wearing out and in need of repairs /maintenance after several days use. City Administrator Ulrich stated another option is to use equipment certificates and finance over several years instead of a one -year payout. Councilmember Elvig recalled the first megamower purchase was about eight years ago. City Council Work Session / August 28, 2012 Page 2 of 10