Laserfiche WebLink
Councilmember Riley stated the City has a lot of money in the bank, in other funds, and asked if <br />interfund borrowing is a consideration. <br />Finance Director Lund stated the Landfill Trust Fund has been depleted so it has about the same <br />balance as the Equipment Fund. She stated equipment is easy to bond for so the funds on hand <br />could then be used for other projects that are more difficult to bond for. <br />Councilmember Riley asked about using the Enterprise Funds. <br />Finance Director Lund stated that is the decision of the Council and those funds are eligible for <br />interfund loans. <br />Councilmember Riley stated he is raising these questions because the City has a lot of money on <br />hand. <br />Finance Director Lund stated the Capital Equipment Fund cannot fund the purchase of <br />equipment unless there is a loan or borrowing against future years. In addition, there are <br />equipment purchases anticipated in coming years so it is an ongoing issue. <br />Councilmember Riley stated he understands the funds were used for the Sunwood project but <br />normally he would not support borrowing money for purchase of equipment that is in the budget. <br />He noted there is ten -year bonding for two -year assets (squad cars). <br />Finance Director Lund explained that squad cars are kept longer than two years within the fleet <br />but only used as a squad car for a two -year period. <br />Councilmember Riley stated he does not support continuing this practice but in this case, the <br />money was spent last year on Sunwood so he supports this particular issuance. <br />Mr. Donna stated that is an excellent observation about financing equipment with a shorter life <br />but they have to prove that the average life for each piece of equipment to be purchased does not <br />exceed the average life within the bond issue. <br />Finance Director Lund stated authorizing the issuance is on tonight's Consent Agenda and when <br />the action is to authorize the sale, it will be a Regular Agenda item. <br />The consensus of the Council was to support the issuance of Capital Equipment Certificates for <br />2013 Capital Equipment Purchases. <br />2.02: Review of Long -Term Street Maintenance and Reconstruction Financing Options <br />and Cost Estimate Assumptions <br />City Engineer Westby reviewed the staff report and evaluation of street paving that identified a <br />good percentage are in need of severe maintenance or reconstruction. The previous staff <br />estimate was $3 million per year over the next 30 years. He explained there will have to be an <br />City Council Work Session / July 9, 2013 <br />Page 3 of 7 <br />