09-13-2017 Council Packet - Laserfiche WebLink

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Some key highlights from the other funds are as follows: • General Capital Improvement Fund – continued practice of not budgeting LGA beyond current budget year given past instability. This fund is much healthier than last year given the General Fund surplus transfer of almost $500,000 and 2018’s LGA allotment. The Parks & Recreation Commission is also working on their priorities and won’t have them finalized until later this fall. • Infrastructure Improvement Fund (450) – Ideally, we try to plan of annual project costs of around $1,000,000 of city costs to give us some flexibility if a major project arises we hadn’t anticipated. • Water & Sewer Capital Replacement Fund (604) – This fund will effectively make the debt service payments for the new garage. A healthy balance still exists as long we make sure to generate $300,000 in depreciation from the water and sewer funds. (The current water and sewer budgets total almost $350,000!) We have some placeholders in this fund (such as sewer lining projects) that are not related to specific needs. In 2019, we plan on replacing the Vactor as this unit will be 20 years old and is a key piece of equipment in our sewer maintenance program. The fund balance stays pretty healthy. • Water & Sewer Funds (601 & 602 respectively) are still very tentative given we have only billed two quarters of the year. We tentatively projected a 3% increase in rates but additional review of these funds is necessary... Our goal Wednesday night is to review the budget and then obtain your direction. Given the uncertainty with Falcon Heights, staff is recommending we hold off setting the preliminary levy until our 2nd meeting in September in the hope we have greater clarity on that issue. As I’m sure you know, the preliminary levy we certify can be reduced, but it cannot be increased. As in previous years, we will have additional workshops later this fall to refine the budget before adoption in December. If you have comments or questions in the meantime, please let us know.