Laserfiche WebLink
Councilmember Wise agreed it is cheap money. <br />Councilmember Elvig stated he would like to build back the fund balances and use someone <br />else's money at a low interest rate. <br />Councilmember Backous concurred and stated he has concerns with matching the useful life of <br />the equipment to the use of the money. <br />Councilmember McGlone asked whether the City can rebuild the fund at a faster rate than the <br />1.7% interest that would be paid. He felt that nothing beats cash at the dealership. <br />Finance Director Lund explained how the interest earnings are pooled and last year it equaled <br />$77,000 based on $3 million in the account. <br />Mayor Ramsey stated he will not be on the Council in 2014 so the decision is with the other <br />members. <br />Councilmember Wise noted the life of the equipment could be matched to the loan term by <br />making a down payment. <br />Councilmember Backous stated he supports having the flexibility and agreed the City can <br />exercise that option, if needed. <br />Councilmember Strommen stated she also would rather preserve flexibility with the low interest <br />rates because the City may need it in the future. <br />Finance Director Lund indicated it is listed as another funding source, and is not part of the levy. <br />Mayor Ramsey stated residents will notice the City spent $9 million last year and $10 million <br />this year. He asked if using equipment certificates will drop the $10 million figure. <br />Finance Director Lund stated it will not because the total expenditures are at $10 million. She <br />concluded presentation of the 2013 Levy and General Fund and asked whether the Council <br />supported taking out Riverdale East project, which reduces road projects $1.350 million to <br />balance the budget. <br />The Council expressed no objection. <br />2.02: Review Proposed Amendments to SAC Credit Policy and Consider Policy for Credit <br />Distribution <br />Development Services Manager Gladhill reviewed the staff report and asked whether the Council <br />supported a policy to allow net SAC credits to be applied Citywide and to create a SAC Small <br />Business Loan/Deferred Payment Program. He indicated that Finance staff is comfortable with <br />moving forward. Development Services Manager Gladhill recommended the City monitor the <br />City Council Work Session / November 27, 2012 <br />Page 3 of 8 <br />