Minutes - Council - 03/23/2021 - Laserfiche WebLink

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Motion carried. Voting Yes: Mayor Kuzma, Councilmembers Specht, Riley, Howell, Musgrove, and Woestehoff. Voting No: Councilmember Heineman. 7.06: Adopt Resolution #21-073 Approving the Transfer of Excess General Fund Revenues to the Equipment Revolving Fund, Facilities Construction Fund, Capital Maintenance Fund and Public Improvement Revolving (PIR) Fund Finance Director Lund reviewed the staff report and recommendation that $1,376,214.72 be transferred from the General Fund to the Equipment Revolving Fund in the amount of $412,864.42, the Capital Maintenance Fund in the amount of $412,864.42, the Public Improvement Revolving Funds in the amount of $412,864.42 and the Facilities Construction Fund in the amount of $137,621.46 per the allocation of excess revenue/deficient policy. Councilmember Musgrove stated that she did not fully understand the statement related to Council discretion. Finance Director Lund replied that this action is through resolution and the Council would have the discretion as to how to use funds in the 2022 budget discussions. She stated that the capital equipment is currently funded through the Equipment Revolving Fund, which is why a larger portion has been proposed to transfer to that account through the City’s policy. She stated that all these funds are eligible for discussion as to how the funds can be used. She commented that these are not restricted funds and the Council has the ability to change the allocation to fit the needs of the City at that time. Councilmember Musgrove asked if these funds are the only eligible funds for distribution. Finance Director Lund replied that if the Council would like to change the allocation, it could adjust that through resolution. Councilmember Musgrove stated that she would like to see additional allocation towards road funding. She noted that in 2016, the roads were being bonded for and the focus seemed on the Capital Maintenance Fund which she believed is for parks. Finance Director Lund replied that the Capital Maintenance Fund is used for any large capital maintenance needs throughout the City and provided examples. City Administrator Ulrich commented that the fund can be used for capital maintenance within parks as well. Councilmember Musgrove commented that she would like to see more funds allocated to the PIR Fund for road funding but was unsure if that would be the appropriate fund. Finance Director Lund confirmed that there is the Pavement Management Fund. She explained that the PIR Fund is used for overall road improvements whereas the Pavement Management Fund City Council / March 23, 2021 Page 21 of 24