Agenda - Council - 08/08/2023 - Laserfiche WebLink

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City Administrator Hagen stated that it was because money was not saved up front. He noted that when it comes to the roads they have their funding figured out through 2032; however, if they do not look beyond that, they will end up back at zero again. He stated that this is a passive budget. He explained that the 12.67% levy increase accomplishes a lot and moves Ramsey forward in a passive way. Councilmember Woestehoff added that he feels good about these numbers knowing that the taxable market value is also going up. Councilmember Musgrove noted that with the budget formula and the ordinance any money not spent at the end of the year gets allocated elsewhere. She asked how they would be able to save for items in the future. City Administrator Hagen explained that they have a capital list and as of right now there is no money in the bank for the capital equipment fund. He noted that they could take the three year list and take out more money than is needed for one year's project and put the excess in the bank for the following year's project. Finance Director Lund added that the equipment fund used to have a large balance and they would add depreciable amounts for all the capital equipment to the levy so that when it came time to replace the equipment the funding was already there. She explained that as the budget grew and taxes increased they moved away from this. Councilmember Woestehoff shared that in the past Finance Director Lund has provided feedback that doing calculations on the 5% metric can be annoying when it comes to the pavement management levy. Finance Director Lund stated that the 5% calculation is easier. Councilmember Woestehoff asked if they could increase this levy $100,000 every year rather than a certain percentage. Councilmember Musgrove noted that this may become the same issue as before where the $100,000 may not be enough and they would still have to increase it every year. She stated that with the 5% it is always increasing. City Administrator Hagen stated that having this annual dedicated funding is good while still having the open mind that 5% may not be enough in a few years from now. He noted that they may need to make an adjustment to this and make it earlier enough to make a difference. Councilmember Howell stated that they need to be open to the fact that it may need to increase this but she thinks that the percentage should be increased rather than this being a flat number. Councilmember Woestehoff added that he does not think 5% will be enough and this should already be increased. City Council Work Session / July 25, 2023 Page 9 of 11