Agenda - Council - 09/25/2018 - Laserfiche WebLink

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Finance Director Lund replied that the City has two internal loans that are still being paid back with the land proceeds and advised that after those loans are paid, the funds will be allocated to park improvements. She noted that is the current policy but it can be changed with Council direction. Acting Mayor LeTourneau asked how and why the PIR fund strategy showed up in this discussion. City Administrator Ulrich explained that they did not want to lower the general fund budget that was allocated for streets and based on the discussion on road debt financing it was determined that this would be a good opportunity to utilize the PIR fund to allocate to the general fund. He stated that another funding source may be determined within the next year and until that time, this was found to be a good opportunity to use a small portion of the PIR fund to contribute. Acting Mayor LeTourneau asked and received confirmation that the use of the PIR fund was not intended to be perpetual funding but as a one-time funding source to offset some of the general fund expenditures. Finance Director Lund stated that the excess revenue transfer that goes into the PIR fund comes from the excess in the general fund at the end of the year and therefore some of the funds currently in the PIR fund have come from the general fund in the past. Councilmember Riley asked for additional information on MSA funds. Finance Director Lund stated that $140,000 to $150,000 is included in the budget annually from MSA funds to the general fund and is then applied to road projects that would be eligible for MSA funding. Councilmember Kuzma asked the comparison of the proposed levy to the 2018 levy. Finance Director Lund replied that the 2018 levy was 41.73 compared to the proposed 2019 levy of 41.72. She stated that all the options provided are at the same level or lower. Councilmember Kuzma referenced the discussion regarding whether to add one police officer or two officers. H stated that he would like to hold the ratio of 1,000 residents to each police officer and stated that the difference in adding the second police officer is only an increase of $7 per year for the average value home and believed that residents would find that to be a good investment. Finance Director Lund explained that the purpose of including the five-year budget is to show the impact of adding those personnel items going into future years. She noted that the fiscal disparities and TIF numbers are not yet finalized and are estimates from the County at this time until the final numbers are received. She provided a brief review of the other budget options. City Council Work Session / August 28, 2018 Page 2 of 8