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<br />is restricted to overlays and reconstructions. She stated that the PIR Fund is used for new <br />improvements, such as paving dirt roads. <br /> <br />Councilmember Musgrove asked if the Pavement Management Fund should be added to increase <br />road funding. <br /> <br />Councilmember Heineman stated that it appears the City has budgets for each of the funds which <br />is being spent and when there is excess revenue it is appropriately divided into the funds for <br />expenses which are not budgeted. He asked which projects are relying on these funds. <br /> <br />Finance Director Lund reviewed some of the excess revenue totals from previous years. She stated <br />that 30 percent of the excess funds are allocated to the Equipment Revolving Fund which will be <br />used to offset equipment purchases in the 2022 budget. She stated that without those dollars, the <br />City would need to issue additional equipment certificates or place that cost on the property tax <br />levy. She provided additional explanation related to fund balance needs and how those funds are <br />used to offset future budget costs. <br /> <br />Councilmember Heineman appreciated the clarification. He asked if the funds would be allocated <br />to the fund but not spent at this time. He asked if reallocating the funds would defund a purchase. <br /> <br />Finance Director Lund confirmed that this would close out the accounts from the previous year <br />and allocate those funds per the City policy. She confirmed that the funds cannot be committed to <br />anything at this time because the balance was unknown before this transfer takes place. <br /> <br />Councilmember Heineman agreed that the priority of Ramsey and its residents is to improve its <br />roads as it fell behind even with the Franchise Fee. He stated that he would like to see a larger <br />portion of this, if not all of it, allocated to the Pavement Management Fund. He stated that he <br />would prefer to table this discussion and continue in a worksession to discuss how allocations <br />could be done in that manner. <br /> <br />Mayor Kuzma commented that it is his understanding that this is excess money received because <br />of the CARES Act funds and if those funds would not have been received the City would have <br />ended the year in a deficit. <br /> <br />Finance Director Lund replied that is correct. She commented that if the City would not have <br />received CARES Act funds, it would have pulled from these respective funds in excess of <br />$100,000. She stated that when the budgeting discussions begin, if there are zero dollars allocated <br />to capital equipment, there will be an impact to the budget for squad cars and other equipment <br />which will carry over to the property tax levy. She stated that this cannot be tabled as she needs <br />to allocate those funds tonight. She stated that the Council can review the policy at a later <br />discussion but would urge that to occur in conjunction with the budgeting discussions so that the <br />Council is aware of the needs. <br /> <br />Councilmember Woestehoff acknowledged that this is an anomaly year as most years have <br />$100,000 to $180,000 in excess. He stated that he is not in support of allocating funds to the <br />Pavement Management Fund because if there was a deficit the City would need to pull from that <br />City Council / March 23, 2021 <br />Page 22 of 24 <br /> <br />