10-14-09 Council Workshop - Laserfiche WebLink

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MINUTES CITY COUNCIL OCTOBER 14, 2009 significant level of potential improvements, the Water/Sewer Capital Replacement Fund balance is sustained at a reasonable level. The Director next reviewed the General Capital Improvement Fund, noting that this fund is levy supported. The levy amount has been approximately $37,000 for the last few years. Given the decrease in revenue to the ] 0% Fund, there is more pressure to increase the levy for the General Capital Improvement Fund. The Director also discussed the fact that the City's 3% Fund (supported by a tax on gambling gross profits) will be depleted soon and the tax has not been collected by the City from charitable gambling organizations for a number of years. She anticipated that it would be difficult to impose this tax again given the current charitable gambling climate. Revenue to this fund is used to offset City expenses in regulating charitable gambling. The Director reviewed the more significant demands on the General Capital Improvement Fund which include fire truck replacement, front end loader replacement, trail enhancements, refurbishing the fire barns warming house, as well as Thunder Bay Park. The Director reported that the balance in this Fund will not he able to maintain this level of spending. Therefore, the Council will have to prioritize projects or increase levy support to the Fund. Blesener indicated that he discussed Fire Department truck replacement with the two Assistant Chiefs, mentioning there may be the need to modify the truck replacement schedule or to work cooperatively with another city to share equipment that is not used on a daily basis. Blesener suggested that a workshop be held with the Fire Department in the spring to address these issues. The City Administrator noted that in the past when the Council approves the five-year General Capital Improvement Fund Budget, current year items are considered as approved. The Administrator also suggested that there may need to be additional prioritization of General Capital Improvement items either this fall or before proceeding with a purchase. The Administrator suggested items $25,000 or more be brought back to the Council for approval. The Administrator noted the City's ability to generate a surplus is difficult given the impact of reduced revenue from the 10% Pund as well as the impact to the City due to the State deficit. He noted that there has been minimal levy support to the General Capital Improvement Fund for a number of years. "I'he Administrator also pointed out the needs listed in the CIP and the options available to the City are to either increase the levy or prioritize tighter.