Laserfiche WebLink
<br />Councilmember Woestehoff stated that 2022 budget issues and funding for roads are the current <br />objective. <br /> <br />Councilmember Heineman stated it is not fiscally irresponsible to maintain 5% growth. <br /> <br />Councilmember Woestehoff stated he would prefer to fully fund the roads without dipping into <br />savings. <br /> <br />Councilmember Heineman stated the savings account is there for a reason, and as tax capacity <br />grows, we will be better off financially. He added there would be a surplus in 2030. <br /> <br />Councilmember Woestehoff stated this budget discussion pertains to 2022, not 2030. <br /> <br />Councilmember Heineman asked why the City would raise taxes when there is a surplus in the <br />savings account that we can use to get us through the time period when it is needed. <br /> <br />Councilmember Specht asked how much is left in the roads fund. <br /> <br />Finance Director Lund stated the fund will have approximately $1.5 million at the end of the year. <br />She added tax capacity for 2022 would be about 43%, and capital equipment requests for 2023 are <br />not known but could be approximately $400,000. She noted this takes into consideration 15% for <br />roads based on a 5% levy. <br /> <br />Councilmember Musgrove asked whether the bond levy will be a separate issue. <br /> <br />Finance Director Lund stated the bond levy falls outside the scope of the budget. She added a rate <br />increase in 2023 takes into consideration capital equipment certificates, municipal center debt, and <br />a reduction in the debt due to reissuance of $100,000. She noted $300,000 will be applied this <br />year that will not be there in 2023. <br /> <br />Councilmember Howell asked whether this discussion can be continued after the regular meeting. <br /> <br />Councilmember Specht asked what is planned in the CIP for roads for 2022, and what would be <br />the impact of the tax levy increase to $1.9 million instead of 1.673 million for this year. <br /> <br />Councilmember Heineman stated, with the franchise fee, 2022 roads are under-funded. He added, <br />with the tax levy, they will be fully funded by 2024. <br /> <br />Finance Director Lund stated the tax capacity rate would provide approximately $200,000. <br /> <br />Councilmember Musgrove asked whether any roads are projected to be done with MSA funds, <br />under the CIP in 2023. <br /> <br />Finance Director Lund stated she is working on the CIP items and will present that to the City <br />Council in a month. She added the road are not MSA-Eligible. <br />City Council Work Session / September 14, 2021 <br />Page 11 of 15 <br /> <br />