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Councilmember Musgrove said she does not support the debt. She asked if they have any <br /> investment cash that they could use to offset the debt. <br /> Finance Director Lund explained that when they are looking at investment dollars, it is not like a <br /> dollar comes in and it goes to the general fund,but rather it is all pooled. She said this is based off <br /> of the balance at year end of how the interest is calculated out. <br /> Councilmember Musgrove asked if there are any funds that they have money in that would qualify <br /> to fund a portion of the firetruck. <br /> Finance Director Lund said they can do an interfund loan against the PIR fund or possibly the <br /> facility fund. <br /> Mayor Kuzma shared that he agreed with Councilmember Riley and likes the idea of using an <br /> internal loan for the balance due in 2025 and then look at the capital equipment needs for the <br /> future. <br /> Finance Director Lund explained that she would like to change the City's fund balance policy to <br /> be more in line with what other cities do where they have a fund balance of 50% of next year's <br /> property tax levy. She noted that if they move to this fund balance model there may be some funds <br /> left that they could look at using. She added that if legislation comes through in regard to paying <br /> themselves back through the TIF, then this would be available funding that can be used towards <br /> the budget and roads. <br /> Councilmember Specht shared that he also likes the idea of using an internal loan for the balance <br /> of the firetruck. <br /> City Administrator Hagen said Staff can check existing fund balances to make sure they have the <br /> funds for an interfund loan. <br /> Councilmember Woestehoff shared that he is pretty comfortable with the proposed budget; <br /> however, he is nervous about what the 2026 capital expenditures are going to be. He added that <br /> bonding may make sense for the firetruck as it will be an asset that will be around for a while and <br /> interest rates are about to drop. <br /> Councilmember Musgrove asked if there has ever been a market rate wage decrease. <br /> City Administrator Hagen shared that the most recent example of something like this was in 2008- <br /> 2012 where there were wage freezes; however, he does not know if there has ever been a wage <br /> decrease. <br /> Councilmember Musgrove asked if the Council sees this as an appropriate time to freeze wages. <br /> Councilmember Woestehoff said no, especially considering the market rate calculations. <br /> City Council Work Session /August 27, 2024 <br /> Page 3 of 12 <br />