Agenda - Council - 08/10/2026 - Laserfiche WebLink

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Finance Director Lund reiterated that restoring the remaining laptop funding would not affect the proposed levy because the purchase would continue to be financed through the Housing and Redevelopment Authority core fund, requiring only a fund balance adjustment rather than additional property tax revenue. Several Councilmembers expressed interest in revisiting the issue after Information Technology staff evaluated the operational impacts of a phased versus complete implementation. Councilmember Riley complimented staff for the revised budget presentation, noting that the new format made it much easier for the Council to understand the City's financial position and evaluate potential budget adjustments. He then asked Ms. Lund whether she remained comfortable with the long-term projections for the Housing and Redevelopment Authority core fund given the growing number of capital projects proposed to rely upon that funding source. Finance Director Lund reviewed updated long-term cash flow projections showing the impact of current and future capital projects on City funds. She explained that 2027 requests were highlighted separately from projects scheduled in later years of the Capital Improvement Program. Because several items removed from the 2027 budget were expected to return in future years, current planning projections temporarily showed the fund balance declining below zero. She emphasized that the projections were planning tools rather than final commitments but illustrated increasing financial pressure from future facility and equipment replacements. She also reported that updated facility estimates reduced the projected cost of replacing the City's primary chiller system from approximately $1 million to $600,000. However, other major expenses remained on the horizon, including a $400,000 building automation system in 2027, a $350,000 boiler replacement in 2029, and future roof replacements for City Hall and the fire stations. She noted that these anticipated obligations reinforced the need to carefully manage available fund balances despite the City's current financial flexibility. Councilmember Riley asked about the differences between the total General Fund budget and the proposed levy after noticing slightly different totals within the budget documents. Finance Director Lund clarified that the General Fund operating budget totaled approximately $24.98 million. At the same time, the proposed levy was slightly lower because several capital expenditures were being financed through the Housing and Redevelopment Authority core fund rather than property taxes. As a result, the overall operating budget and the tax levy would not necessarily match exactly even though they remained closely aligned. Councilmembers also inquired whether the various reserve and capital funds generated investment income while awaiting future expenditures. Finance Director Lund confirmed that each fund earned interest and that annual interest earnings were already incorporated into the respective cash flow projections. She explained that investment income helped offset future capital costs and was reflected as a separate revenue line within each fund's financial statements. City Council Work Session / July 28, 2026 Page 5 of 12