08-22-2016 Council Packet - Laserfiche WebLink

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