Agenda - Council - 09/14/2021 - Laserfiche WebLink

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Councilmember Riley asked why there is a beginning balance of $1.5 million. Finance Director Lund stated the pavement management fund had a beginning balance that was calculated to complete roads reconstruction over 9 years, which was estimated at 1.9%. She added, after the franchise fee was instituted, approximately $95,300 was transferred for the business park. Councilmember Heineman asked whether the balance at the beginning of the year will be enough to fund projects in 6-month increments. Finance Director Lund stated that is an estimate as the City has not finished paying off the project and collecting franchise fees. She added she is estimating $1.5 million. Councilmember Heineman stated if the balance is estimated to increase to 15%, there will be enough funding to continue road projects and increase the balance starting in 2029. Councilmember Heineman asked whether Finance Director Lund can confirm that the balance with franchise fees after 2029 would be $276,000 as he indicated in his model. Finance Director Lund stated she did not focus on tax rates. Councilmember Musgrove stated MSA funding is also used for budgeting for roads projects. She asked whether MSA funds are available to the City, which were recently reviewed, would mean more or less funding for roads. Finance Director Lund stated the estimated $1.9 million was strictly for road projects that were not eligible for MSA funding. She added MSA roads are noted in the CIP. Mayor Kuzma requested clarification regarding MSA funding. City Administrator Kurt Ulrich stated MSA funding varies from year to year, and every year more cities are eligible. He added MSA funding that is available for Ramsey roads has been decreasing slowly over the years. Councilmember Riley asked whether the City Council is comfortable with rejecting option #1, so the focus can be on the 2nd and 3rd options. The City Council agreed to consider only Options 2 and 3. Councilmember Riley stated City Staff presented a preliminary budget with a 12% increase 2 months ago. He asked why the 5.45% increase is now possible, and what has changed. Finance Director Lund stated items in the budget highlighted in red have been removed from the budget, including the citizen survey; the Laserfiche upgrade for $55,000; body worn cameras for $117,000, which were moved to the American Recovery Fund; $300,000 related to the transfer; and employee health insurance that was recalculated, for a total of approximately $900,000 in reductions. City Council Work Session / August 24, 2021 Page 3 of 19