08-08-2016 Council Special Work session Minutes

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CITY COUNCIL SPECIAL WORK SESSION APPROVED August 8, 2016 46 staff reviews those line items carefully and has made cuts; staff has been very 47 conservative over the past years in reducing and managing budget items. Mayor Reinert 48 noted that there will be homes added and the city needs to be prepared to provide 49 services. Community Development Director Grochala noted that the previous year's 50 budget included the use of reserves and that hasn't been plugged in for 2017 at this time. 51 Mayor Reinert suggested that he would like to keep the tax rate static. 52 53 Personnel — Administrator Karlson noted the increases requested for 2017. The addition 54 of .5 FTE Office Specialist for Finance and .5 FTE Office Specialist for Public Services 55 and a CSO position in the Police Department. 56 57 Mayor Reinert noted that the CSO position is related to the grant officer position and the 58 extra work create through growth of the ACE program. Given the number of complaints 59 that he is receiving from the community (due to impact on businesses), he wonders if the 60 council should consider not renewing the grant after its four year period. Of course, that 61 decision shouldn't be made in a vacuum without having concerned people directly 62 address the council and the police chief offering his opinion. Council Member Maher 63 suggested that if there is one DWI identified with one hundred pullovers, she's okay with 64 that. Council Member Manthey said he's received multiple comments also; from his 65 personal perspective, where he lives he sees a positive change in traffic operating more 66 safely. 67 68 Mayor Reinert said he'd like to take a closer look at equipment budgets for the Fire 69 Division budget as well as the Public Services Division in the hopes of setting a more 70 static yearly amount. Finance Director Cotton explained the current situation of issuing 71 capital equipment notes and the past practice of contributing to a fund and purchasing 72 equipment with available funds. If the council wished to return to the cash practice, the 73 city should begin weening itself from the practice of issuing notes. Mayor Reinert noted 74 that the practice of borrowing began because the interest rate was so low it was 75 essentially free; Ms. Cotton explained that the debt was actually issued internally at an 76 interest rate just over one percent. 77 78 Council Member Kusterman asked why not charge an interest rate equal to what the city 79 would make from the funds it borrows from itself Ms. Cotton said the city could go 80 lower to that rate. Community Development Director Grochala suggested that the 81 certificates involved are five year notes and there is an allowance for some variation in 82 interest rates. Council Member Kusterman asked if there are regulations over the city's 83 lending funds to itself and Ms. Cotton suggested it is based on fund availability. Council 84 Member Kusterman suggested that internal borrowing would seem to make a lot of sense; 85 he'd like to see if there is a way to better the city's return on the fund balance. Ms. 86 Cotton explained that the city's surplus funds are somewhat limited and their availability 87 limits the amount of internal lending. 88 2