Agenda - Council - 09/24/2019 - Laserfiche WebLink

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Councilmember Musgrove asked if the contingency amount is used each year or whether that amount could be decreased. Finance Director Lund stated that only $25,000 is up for discussion and explained that the remainder is related to debt for the public works land purchase and a loan for the city hall building. She stated that $10,000 is included for the special election and for the presidential election. She noted that contingency funds are used for unbudgeted/emergency expenses that arise during the year. Councilmember Musgrove asked how often those contingency funds are used. Finance Director Lund stated that she would recommend some form of contingency as there is always something that could happen. She used an example of winter, noting that one year the City ran out of salt and excess funds were needed for that purchase. Parks and Assistant Public Works Superintendent Riverblood stated that storm damage is another example of those expenses. Finance Director Lund stated that the price of gas is another area that cannot be anticipated and has caused use of the funds. City Administrator Ulrich stated that it is rare that funds would be allocated from the contingency fund unless it is an emergency situation. He noted that typically funds are allocated from a department or reserve fund. He stated that the contingency amount has been decreased in the past to the current amount of $25,000. Finance Director Lund provided additional details on the firetruck purchase, noting that the funding in 2020 would come from the capital equipment fund but in 2021 there would be additional discussion on that funding. Councilmember Riley asked if the City has had a surplus revenue over expenses each year. Finance Director Lund confirmed that has been the case for the past few years and provided additional details on those figures from the past three years. She reviewed how those funds were allocated to the different City funds, following the City's policy. Councilmember Riley stated that each year the City begins with a balance budget and for the past few years has ended with a surplus. He stated that the statement could then be made that the City has overtaxed its residents by over $1,000,000 in the past two years. Finance Director Lund explained that the City budgets conservatively for building permit revenue as that cannot be predicted and therefore the majority of the revenue from the last two years was related to building permit revenue. City Council Special Work Session / September 3, 2019 Page 3 of 17