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MINUTES <br />CITY COUNCIL <br />NOVENIBER 29, 1994 <br />Rusty Fifield, Ehlers & Associates, stated that he <br />encouraged communities to set aside money for capital <br />improvements. Fifield pointed out that it is difficult <br />to accumulate cash, therefore, he is usually fairly <br />conservative about maintaining balances once a city has <br />them. Fifield stated that is has become increasingly <br />difficult for cities to do everything that is expected <br />of them while still maintaininq a lid on tax levies. <br />Fifield stated that he is comfortable with the proposal <br />before the Council which he views as a balance of the <br />resources the City has with meeting the objectives of <br />being good financial stewards for the community. <br />Fifield cautioned the Council about looking to <br />continually use these types of funds to buy down the <br />levy. Fifield pointed out that the proposal is to do <br />so for five years until the levy drops off in the year <br />2000. At that point the City would still have <br />approximately $250,000 left to finance projects which <br />have not been identified at this point. <br />Fifield reported to the Council on the need to set up <br />funds in a specific manner to fund capital <br />improvements. Fifield pointed out that the Legislature <br />has looked for undesignated General Fund balances of <br />cities in order to pass their financial problems on to <br />communities. Fifield stated that the Legislature is <br />under pressure to look at property tax reform and a <br />major overhaul of school financing. Any changes in <br />school financing will have a definite impact on city <br />financing. Fifield stated that when fund balances are <br />not clearly identified and tied up for a specific <br />purpose, he become nervous. Infrastructure replacement <br />reserves and public works reserves provide more of a <br />comfort level as do capital improvement reserves. <br />Fifield urged the Council to place undesignated General <br />Fund balances into fund that are set aside for a <br />specific purpose as long as doing so does not impair <br />the City's flexibility to use the funds for the <br />purposes intended. Fifield also reported that he and <br />the Administrator will be working to establish a fund <br />which can be used for future economic development <br />purposes. <br />Scalze expressed concern with the State's involvement <br />in undesignated City funds. <br />Fifield suggested that rather than the City's <br />7 <br />