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that can be considered, such as the PIR Fund of $409,971, HRA Fund balance of $222,198, and <br />Equipment Fund for 50% of the purchases of $99,500, totaling $731,669. <br />Finance Director Lund stated the levy increase of $1,040,793 is attributable to four items: Road <br />Fund (34 %), Personnel Costs (27 %); Equipment Certificates of (19 %); and Building Permit <br />Revenue Decrease (20 %). <br />Councilmember Backous asked if any of the personnel costs are attributable to the HRA and/or <br />EDA. <br />Finance Director Lund answered in the affirmative, noting that almost all of the EDA budget is <br />for personnel. <br />Councilmember Backous stated the $279,000 cost is not only for new employees but has a lot to <br />do with COLA, benefits, and shifting of HRA salaries. <br />Finance Director Lund stated a personnel breakout will be presented of the new hires and market <br />rate adjustment, netting about $31,000 with market rate adjustments totaling about $13,700. <br />Councilmember Backous asked if the HRA Fund balance can be used for General Fund <br />purposes. <br />Finance Director Lund answered in the affirmative and explained the HRA levy ends at the end <br />of 2014. <br />Councilmember Riley asked for an explanation of the PIR Fund balance. <br />Finance Director Lund explained the PIR Fund balance is an item available; however, it is one- <br />time money. <br />Mayor Strommen asked about the budget for road maintenance and if it covers those costs for a <br />full year. <br />Finance Director Lund stated it would cover road maintenance with a 20% assessment. She <br />explained the full $2.2 million is included with these levy numbers and this is the first year <br />without TIF District #4 funds. <br />Finance Director Lund presented the components of the budget and Ehler's forecast including <br />low -end sales prices. She stated this forecast is very conservative. After four years, it is <br />expected there will be land sale revenue to cover road project costs plus HRA increment will be <br />available by then. <br />Councilmember Riley referenced the scenarios developed by Ehlers and asked if a best estimate <br />or suggestion had been offered. <br />Finance. Director Lund stated staff is using the low estimate, which is the most conservative. <br />City Council Work Session / August 11, 2014 <br />Page 2 of 9 <br />