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is restricted to overlays and reconstructions. She stated that the PIR Fund is used for new <br /> improvements, such as paving dirt roads. <br /> Councilmember Musgrove asked if the Pavement Management Fund should be added to increase <br /> road funding. <br /> Councilmember Heineman stated that it appears the City has budgets for each of the funds which <br /> is being spent and when there is excess revenue it is appropriately divided into the funds for <br /> expenses which are not budgeted. He asked which projects are relying on these funds. <br /> Finance Director Lund reviewed some of the excess revenue totals from previous years. She stated <br /> that 30 percent of the excess funds are allocated to the Equipment Revolving Fund which will be <br /> used to offset equipment purchases in the 2022 budget. She stated that without those dollars, the <br /> City would need to issue additional equipment certificates or place that cost on the property tax <br /> levy. She provided additional explanation related to fund balance needs and how those funds are <br /> used to offset future budget costs. <br /> 3 <br /> I <br /> Councilmember Heineman appreciated the clarification. He asked if the funds would be allocated <br /> to the fund but not spent at this time. He asked if reallocating the funds would defend a purchase. 1 <br /> Finance Director Lund confirmed that this would close out the accounts from the previous year <br /> and allocate those funds per the City policy. She confirmed that the funds cannot be committed to <br /> anything at this time because the balance was unknown before this transfer takes place. z <br /> I <br /> Councilmember Heineman agreed that the priority of Ramsey and its residents is to improve its <br /> roads as it fell behind even with the Franchise Fee. He stated that he would like to see a larger <br /> portion of this, if not all of it, allocated to the Pavement Management Fund. He stated that he <br /> would prefer to table this discussion and continue in a worksession to discuss how allocations <br /> could be done in that manner. <br /> Mayor Kuzma commented that it is his understanding that this is excess money received because <br /> of the CARES Act funds and if those funds would not have been received the City would have <br /> ended the year in a deficit. <br /> Finance Director Lund replied that is correct. She commented that if the City would not have <br /> received CARES Act funds, it would have pulled from these respective funds in excess of <br /> $100,000. She stated that when the budgeting discussions begin, if there are zero dollars allocated <br /> FE <br /> to capital equipment, there will be an impact to the budget for squad cars and other equipment <br /> which will carry over to the tax levy. She stated that this cannot be tabled as she needs <br /> property ev Y 3 <br /> to allocate those funds tonight. She stated that the Council can review the policy at a later <br /> discussion but would urge that to occur in conjunction with the budgeting discussions so that the <br /> Council is aware of the needs. <br /> Councilmember woestehoff acknowledged that this is an anomaly year as most years have <br /> $100,000 to $180,000 in excess. He stated that he is not in support of allocating funds to the <br /> Pavement Management Fund because if there was a deficit the City would need to pull from that <br /> City Council l March 23, 2021 <br /> Page 22 of 24 <br />