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Mounds View City Council Page Ten ~egular Meeting September 13, 1993 Mayor Linke stated that the street light utility fund is a designated fund and those monies. are collected and expended for the purpose of street light operation and maintenance. Samantha Orduno, City Administrator, stated that the City doesn't have an undesignated fund for long. Most of time the surplus from an account is designated promptly. Ed Werdien, 6940 Silver Lake Road, asked why the City is taking $200,0.00 from the water and sewer fund to put an expansion on the City Hall building. Mr. Werdien stated he read this in The Bulletin. Mr. Werdien suggested letting the rates go down and don't do any work on the City Hall building. Mr. Werdien stated that the building-needs no expansion. Mr. Werdien stated that Mounds View has the highest water and sewer rates around. The only City lower is Lino Lakes. orduno stated that there is a certain amount to be transferred from one fund and placed in another. Naja Werner read from The Bulletin the following, "Currently, the city hall building fund has a $371,000 balance. The additional money for the project will be transferred from the city's general, sewer, water and undesignated ~unds." Naja Werner questioned, "what is a designated fund?" Orduno explained that a designated fund is a fund where the money that goes into it is designated to buy equipment and services for a certain program. These .funds can be transferred from one fund to another. In times where .there are undesignated funds or surplus funds where the City has spent less than budgeted, those funds are undesignated until they are designated. Naja Werner stated that then if there were a certain amount of money for sewer and the taxpayer thinks it is being used. for sewer, the Council can actually use it elsewhere. Mayor Linke stated that if the money were to be taken out of water it would be used for something to do with that department. Orduno explained that the rates are lower in New Brighton because of the army settlement that happened years ago and the money is used to buy down sewer and water rates. Bill Frits, 8072 Long Lake Road, stated that a sunset was provided on this utility so that the utility could come to an end so that the City could assess what had taken place and go on from there. Mr. Frits stated that now is the time to end the utility and assess its success or failure. - Mayor Linke stated that the rate is more than what is requested because there now is a track record. If the street light utility were to continue, ~he rate could now be lowered. Mayor Linke stated that he has been opposed to sunsetting this utility since the very beginning. Linke stated that the