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Minutes - Council Work Session - 08/24/2021
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Minutes - Council Work Session - 08/24/2021
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Meetings
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Minutes
Meeting Type
Council Work Session
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08/24/2021
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trails, and there will be $630,000 in that fund at the end of 2030. She noted the facility fund will <br />have $450,000 left in the fund at the end of 2022, and the PIR will have $375,000. <br /> <br />Councilmember Heineman asked whether there is consideration in terms of bond ratings for a 5% <br />increase as opposed to a 12% increase. <br /> <br />Finance Director Lund stated the bond rating takes into account population growth, the economy, <br />employment, average income, and debt. She added the bond rating report includes all of these <br />factors. <br /> <br />Councilmember Musgrove asked what the revenue source is for the equipment fund. <br /> <br />Finance Director Lund stated the equipment fund is funded by excess revenue and interest in the <br />year end transfer. <br /> <br />Councilmember Musgrove thanked Finance Director Lund for her hard work. <br /> <br />Finance Director Lund asked for a consensus on a 5% general levy and 15% for roads. <br /> <br />Councilmember Heineman agreed. <br /> <br />Councilmember Musgrove stated she thinks it is a good idea if 5% helps City Staff with planning <br />every year. She added the debt levy will be different. <br /> <br />Finance Director Lund asked whether the laserfiche should be added back in, which was cut from <br />the original budget document. <br /> <br />Councilmember Specht asked whether the laserfiche could come out of CARES Act funding or <br />any other funds. He added he does not think it is a top priority. <br /> <br />Mayor Kuzma stated the contracts are not in yet, and there is potential for that to change. He added <br />he does not want to lock in to 5% at this point until the City knows where it sits with its contracts. <br /> <br />Councilmember Heineman stated, if a 5% increase is agreed upon and a contract comes back very <br />one-sided, there can be further discussion. He added he supports a consensus to move forward <br />with 5% <br /> <br />Mayor Kuzma stated he would suggest a higher increase to provide the ability to bring it back <br />down, so the City is not locked into negotiations. <br /> <br />Councilmember Heineman stated he would rather start at 5% and negotiate up. <br /> <br />Mayor Kuzma stated the preliminary levy cannot be increased. <br /> <br />Finance Director Lund stated the preliminary levy can only be decreased after it is adopted on <br />September 28. <br /> <br />City Council Work Session / August 24, 2021 <br />Page 6 of 19 <br /> <br />
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