10-14-09 Council Workshop - Laserfiche WebLink

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MINUTES CITY COUNCIL OCTOBER 14, 2009 Keis suggested that once the budget is approved, there will be the need to monitor the budget closely. If the State Legislature imposes additional unallotments, there may be the need for amid-year budget correction. The Administrator reported that the City is financially strong. He again pointed out that there is very Little levy support going Yo the General Capital Improvement Fund. The Administrator also noted that, in the past, the Fire Department has helped pay for replacement trucks. However, if the Fire Department did not have gambling revenue, the cost of truck replacement would be the City's responsibility alone. The Administrator again indicated that each capital improvement expenditure should be evaluated prior to its being made. Montour noted that delaying capital replacement will push the problem off and cause the problem to grow. I3e suggested that there are other options such as decelerating street improvements and shifting franchise fee dollars to the Capital Improvement Fund. "the City Administrator agreed that the City has this flexibility. He also noted that Parkland Acquisition Funds could be used to purchase park equipment. The Finance Director indicated that staff will continue its work on the 20] 0 Budget, and will bring additional information to the Council for discussion. Keis asked if the City is projecting a surplus for 2009. "the Director replied that a $160,000 surplus is projected at this point, but noted that the State is considering additional unallotments which would bring that amount to zero. The Administrator felt there was a good chance that additional unallotments will occur. The Administrator stated that the State's lack of financial stability is a concern and pointed out that there are concerns for 2011 as well. 'there could be continued pressure on school districts, counties, and cities to deal with the State's budget crisis. Blesener noted that there is a committee that is reviewing the local government aid formula. That committee is supposed to complete its work in 2010 and make a recommendation during the 2011 legislative session. McGraw asked about the impact to the City if it received no local govermnent aid in 2011 and 2012. The Administrator reported that the City is currently dependent on about $200,000 in LGA. If that were taken away, the amount of franchise fee collected could be used to offset this loss. Currently the franchise fee revenue is directed into the Infrastructure Fund. 'T'he Administrator stated that the City could deal with the loss of LGA, however, major reprioritization would have to occur. The City can back off on street improvements and capital purchase, however, that tactic only works for so long. The Administrator noted that the work that the City is doing in upgrading it streets is work that needs to be done. 4