Minutes - Council Work Session - 08/11/2014

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Finance Director Lund stated it will depend on how many projects are being taken on and staffs ability to handle them. City Engineer Westby stated Engineering Department staff is already at that level but it will be helped when the Engineering Tech is hired. Mayor Strommen stated the issue then is how to make it up next year, which could result in an increase. City Administrator Ulrich explained the intent was to reduce the level of debt and this would allow the debt service to be reduced. Councilmember Tossey supported the suggestion of Councilmember Riley since that was the intended use for those funds. Councilmember Backous concurred and asked if the same logic would hold to use the HRA balance of $222,000. He supported matching the use of funds to the purpose for which they were levied. City Administrator Ulrich stated the difference is that dollar- for - dollar reimbursement would have to be made up through reductions in staffing or going back to the General Fund. Councilmember Kuzma stated he supports using the Road Fund balance for roads. Councilmember Johns concurred. The consensus of the Council was to use the Road Fund to lower the amount of bonding for road projects, as that was the intended purpose for budgeting that amount. Mayor Strommen asked about using the HRA funds in one year rather than in two. The consensus of the Council was to expend the HRA Fund balance in two years rather than one year and to fund equipment purchases with 50% Equipment Fund and 50% Equipment Certificates. Councilmember Backous stated the owner of a $150,000 house will not `feel' an increase in evaluation but will `feel' an increase in taxes of over $300. Finance Director Lund stated the $150,000 example is the gross market value of the home and she had taken off exclusions. Councilmember Tossey stated this is the right direction, noting the amount can go lower after the September approval. City Council Work Session / August 11, 2014 Page 5 of 9