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Councilmember Musgrove asked if that decision would need to be made each year or whether that <br />could be set in policy. <br /> <br />Councilmember Riley commented that historically those funds were always spent because the City <br />was seal coating. He stated that the City stopped seal coating and therefore there were additional <br />dollars budgeted that were not spent. He stated that is why the funds were transferred to the <br />pavement management fund in order to keep those dollars slated towards roads. <br /> <br />City Administrator Ulrich stated that could be set in policy that if those funds marked for crack <br />seal and rejuvenation are unspent at the end of the year, the transfer would occur to the pavement <br />management plan. <br /> <br />Councilmember Musgrove commented that she would support that. <br /> <br />Councilmember Specht asked the current allocation for excess funds and how dependent those <br />funds are on the transfers. <br /> <br />Finance Director Lund explained how the allocation is currently completed. <br /> <br />Mayor Kuzma noted that the rejuvenation only works on newer roads. He stated that he supports <br />spending those allocated dollars on the roads but would prefer to have the Public Works Committee <br />make the recommendation each year as to what is needed. <br /> <br />Councilmember Woestehoff commented that per the policy, if there were an excess amount at the <br />end of the year, the identified funds would receive an allocation. He explained that the reverse is <br />also true if there is a deficit, the additional dollars are pulled from those accounts. He stated that <br />for that reason he would prefer not to include the pavement management fund within the policy <br />and allow the Council to decide whether to put more money into specified funds. He stated that <br />he would not want funds to be able to be pulled from the pavement management fund if the City <br />had a bad year. <br /> <br />Councilmember Specht asked the percentage of a fund balance the City would like to keep. <br /> <br />Finance Director Lund explained that 50 percent fund balance is recommended to be kept because <br />of the method in which property tax payments are made. She continued to review the details of <br />the other funds included in the staff report. She provided additional clarification on MSA funds, <br />how they could be used in the past and how they can currently be used. <br /> <br />Councilmember Specht stated that later down the road he would like to further discuss how the <br />excess funds are allocated at the end of the year. <br /> <br />Finance Director Lund stated that it will be helpful for the Council to see how the funds are used <br />in the budget discussions before having that discussion. She completed the review of the remaining <br />funds included in the staff report. <br /> <br />City Council Work Session / May 25, 2021 <br />Page 3 of 5 <br /> <br />