Agenda - Council - 05/11/2004 - Laserfiche WebLink

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everything. If they are in good shape at the end of the year he has no problem eliminating the franchise fee, however, to be fiscally responsible they need to be sure there is enough money to go ahead with the projects they are doing. Motion by Councihnember Cook, seconded by Councilmember Pearson, to ratify the recommendation of the Finance Committee and adopt Resolution #04-04-099 to authorize the transfer of the General Fund excess revenues to the Equipment Revolving Fund, the Facilities Construction Fund and the Public Improvement Revolving Fund at the stated amounts with the understanding that the amounts currently transferred to the Equipment Revolving Fund will be transferred to a Park Maintenance Fund once it is established. Councihnember Pearson stated Councilmember Elvig has good points and it is better to have a little reserve to fall back on. He was as much against the franchise fee as anyone else, but thinks they did the right thing. It is better to have a little extra than not have enough funds. Councihnember Cook noted the funding is being moved into areas where they set goals to move forward over the next five years. Councihnember Kurak asked when the Park Maintenance Fund would be established. Councilmember Elvig explained this needs to be put forward into an ordinance and the committee directed Finance Officer Lund to move that along. Gary Hanson, President of Bakestar at 14040 Azurite, stated one year ago when the utility fee came up, the Council went into the rainy day fund for $100,000. He asked if that was ever replenished. Councilmember Elvig replied the $100,000 was not taken from the rainy day fund; there was a surplus of about $106,000 that was carried over from the 2003 budget and moved forward. Mr. Hanson stated the Council went into the surplus in the budget and there was no real discussion on what happened to that money. That money was supposed to be used in light of the utility fee for 2003/2004 to carry through until the utility fee was figured out. He is glad to see that the franchise fee has been sunsetted, and that the Council does seem to have major reservations about the advisability of the franchise fee. However, he is concerned about $100,000 that was surplus. Councilmember Elvig stated his understanding is that the $100,000 was moved from the general budget into the following year's budget and was used to help pay down the cost of the budget. There is no reason to pay that back. Councilmember Strommen noted the amount of the franchise fee was reduced from what was originally proposed due to carrying this amount forward. Mayor Gamec suggested Mr. Hanson discuss this issue with Finance Officer Lurid. City Council/April 27, 2004 Page 16 of 35