09-14-94 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL SEPTEPiBER 14, 1994 increases at a constant levy, than to have a large increase in a year when surpluses are not available to buy down the levy. Morelan felt that the City's policy for surpluses should apply to this $25,000, and that it not be used to buy down the levy. LaValle asked if Morelan would spend the $25,000 for other things. Morelan replied that the money could be spent or kept in the reserve fund. Morelan pointed out that the City has funding needs for the surpluses, which are dollars that could be used to fund other things. The City Administrator pointed out that the General Fund reserves are needed to fund a half year's cash flow given the timing that the City receives property tax payments from the County. Reserves are also needed to cover pre-paid expenses and contingent employee benefits. The City currently has General Fund reserves fully funded. Additional surpluses have been allocated to the General Capital Improvement Fund. That fund is in fairly good shape. The Administrator agreed that the City has other needs, but felt that the funds were available to accommodate those needs without the $25,000. Scalze asked if Morelan would rather see the $25,000 put into the General Fund reserve. Morelan replied that that was a possibility. Scalze stated that when the City talks about surpluses, that discussion is almost always followed up by funding requests. Morelan indicated that the issue is whether to buy down the levy with surpluses knowing that source could dry up. The Administrator pointed out that the City budgeted a $24,000 buy-down for the 1994 budget. That buy-down will not be necessary because of conservative budget practices. The Administrator indicated that Morelan's concerns were valid ones in that the City could be faced with an unanticipated situation that could greatly impact the budget. The Administrator felt we are prepared for many possibilities, but indicated that 13