Laserfiche WebLink
purchased but expenses already incurred can continue to be paid back. He stated that the current <br />window for new projects is currently set to expire in November 2021, but the City has a request to <br />extend that for an additional five years. <br /> <br />Finance Director Lund continued to review details of the funds included in the staff report. <br /> <br />Councilmember Musgrove commented that currently the equipment budget appears to be at <br />$778,000 and asked if that would be impacted by the May property tax payments. <br /> <br />Finance Director Lund replied that property tax payments are distributed between the general fund, <br />TIF and capital equipment. She confirmed that the $778,000 is the current balance of that fund <br />today but you would then need to subtract the expenditures that were authorized for 2021. She <br />explained that she completes the transfers when the capital item is purchased. <br /> <br />Councilmember Musgrove stated that the Public Works Committee had a discussion related to the <br />purchase of a paving trailer and she had asked why the expense would not come from the capital <br />equipment fund. She stated that she did not receive a clear answer and was told that the pavement <br />management funds are typically used because if they are not used, they are redistributed at the end <br />of the year. <br /> <br />Finance Director Lund explained that the pavement management fund is where the franchise fees <br />are accumulated and can only be used for road reconstruction or pavement. She stated that the <br />equipment fund can be used for equipment, it simply reduces the available budget to work with <br />for the next budget. She stated that the trailer is being used for road projects only and that is why <br />the funds would be used in that manner. <br /> <br />Mayor Kuzma commented that the pavement management fund is strictly used for roads and the <br />balance does not go away. <br /> <br />Finance Director Lund clarified that there was previously $500,000 from the general fund <br />designated for seal coats and crack sealing. She stated that those would be the funds <br />Councilmember Musgrove is referring to. She stated that the previous year the Public Works <br />Committee made the determination that only $200,000 would be needed for rejuvenation projects <br />and the remaining $300,000 would be transferred to the pavement management plan as seal coating <br />is no longer being completed. <br /> <br />Councilmember Woestehoff commented that the trailer was purchased from the $200,000 <br />designated from the general fund allocated for rejuvenation and crack sealing. <br /> <br />Councilmember Musgrove asked if something could be done to earmark those funds to be used <br />for road projects, whether they are used fully during the year. <br /> <br />Finance Director Lund confirmed that the previous year the Public Works Committee provided the <br />direction that the remaining dollars earmarked from the general fund for crack seal repairs that <br />were unused would be transferred to the pavement management fund. <br /> <br />City Council Work Session / May 25, 2021 <br />Page 2 of 5 <br /> <br />