Agenda Packets - 1982/12/06 - Laserfiche WebLink

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� s TO: Mayor & Council FROM: Clerk -Administrator Pauley Finance Director Brager DATR: December 2, 1902 RE: POLICY RE USE OF REVENUE SHARING FUNDS Consideration of bids received for a dump truck was on the agenda of the November 22, 1982 Council meeting. The Finance Director recommended that, due to the uncertainty of the receipt of scheduled December State Aid payments and a possible reduction of 1983 State Aid payments, the purchase of the dump truck with Revenue Sharing funds be deferred until the State notifies the City of the amount of aids we can expect to receive. It was further suggested that Revenue Sharing funds could be transferred to the General Fund to offset reductions in State Aids. Subsequently consideration of the dump truck bids was deferred. The Finance Director does not recommend that Revenue Sharing funds be used to offset possible reductions in State Aids. It is, however, an option and should be discussed along with other more viable options. Deferral of the purchase of the dump truck with Revenue Sharing funds and the possibility of the subsequent use of Revenue Sharing monies to offset Dossible reductions of State Aids raises the issue of Council policy regarding the use of Revenue Sharing funds. Since an issue of policy has been raised it is staff's feeling that Council should be presented with all the options available regarding the uses of Revenue Sharing funds. Since the beginning of the Revenue Sharing program, Revenue Sharing funds have been budgeted and used for purchases of equipment and other capital expenditures. The funds have not been used to reduce normal city operating expenditures (most of which are budgeted in the General Fund) in the past. The reasoning was not to develop a reliance on a source of funding which has an uncertain future to pay for recurring operating expenses. This goal was successful in the sense that the City has not developed a reliance on Revenue Sharing funds to finance operating expenses of the General Fund. The City has, however, developed a reliance upon Revenue Sharing funds for the purchase of new and replacement of existing equipment for departments budgeted in the General Fund. This includes park equipment and vehicles, police equipment and vP}l;nlnc inspcctic:.a vehicles, maintenance garage equipment and tools, City Hall equipment and the annual sealcoat program. With the Revenue Sharing due to end after next year we must find another source of funding for these items.