Agenda - Council - 11/26/2024 - Laserfiche WebLink

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Mayor Kuzma asked if this policy change would allow the Council to discuss where they would want excess general funds to go. Finance Director Lund said yes and added that Staff would offer recommendations; however, it would be up to the Council where the funds go. Councilmember Riley said he likes the idea of having it decided up front where the funds would go rather than asking the Council every year where they want them to go. He asked if they would also be keeping 5% to 10% aside for unanticipated events as noted in item 2 of the general fund policy. Finance Director Lund explained that this 5%to 10%would only be if they did not collect 50% of the property taxes. She noted that this is a safety measure, and they can make this any percentage that they so choose. Councilmember Riley said he does not like this. He asked if the special temporary allocations in item 3 of the general fund policy would allow the Council to make decisions about future amounts that they would hold. Finance Director Lund stated she looks at this as being for items that are authorized midyear that are not a part of the budget. Councilmember Riley said he would like this to be clarified. He noted that he does not like the idea of this either. He reiterated that he does not like the idea of having Council decide every year what happens with excess funds. He added that he also does not like the proposed idea for if the fund balance falls below the minimum as it focuses more on future needs rather than current needs. He stated he would not want to make current changes because of a future problem. Councilmember Woestehoff shared that he reads this section differently and explained that it would allow them to add excess funds to the levy for overspending in a future year. Councilmember Musgrove noted that this could mean that the Council made a decision that was a bad decision and put themselves in a position where they needed to recover overspending. Councilmember Riley said that they may not collect all property taxes at once; however, they always get it. He noted that at some point this should catch up and not be a concern for unanticipated events. Councilmember Musgrove asked if they could look at this with more of a contingency fund and have some specifics for what it would be used for. Finance Director Lund stated she believes Councilmember Musgrove is referring to the unanticipated funds and for this they just hold something in a fund balance for unanticipated items that come up. She noted that if Council is comfortable with this being 3% of the budget, then she can change this. City Council Work Session / October 22, 2024 Page 9 of 15