City Council Minutes 2014 10 14 - Laserfiche WebLink

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City Council Meeting Minutes October 14, 2014 Page 20 of 23 Council member Lipton asked if the 3% included salary savings. Finance Director Watson explained it does not include any salary savings. Council member Lipton asked where the salary savings shown. Finance Director Watson explained salary savings are not typically budgeted. There are some estimates for the 2015 budget for vacant positions. Council member Lipton asked where the money from salary savings goes at the end of the year. Finance Director Watson stated the funds go back to the reserves. Council member Lipton asked if the total amount of salary savings is known. Finance Director Watson explained it is not budgeted. Council member Lipton asked if the 3% turn -back is included in the budget. Finance Director Watson explained in the General Fund the 3% is included in the financial plan, however it does not show any vacancy savings in the long -term financial plan, nor does it anticipate any additional positions. City Manager Fleming addressed Council member Stolzmann's question on the South Street Gateway Project. He explained staff projects expenditures in 2014 will be $127,000 and $2.4 Million in 2015. Staff anticipates the 2014 funds to be rolled over to 2015. He explained this is a good example of a project where the funds are available for construction as soon as approvals are acquired. Waiting or delaying the project may lead to higher construction costs. He noted the project is delayed by the Burlington Northern Santa Fe Railroad. Council member Lipton stated having discussion in a study session about the General Fund's 15% reserve requirement would be appropriate. He was not sure the reserve amount was sufficient. Mayor Muckle concurred with having such a discussion at a study session. Council member Stolzmann stated her inquiry about the South Street Gateway Project included multiple questions about the funding. She asked whether the project could be delayed; the City's obligations and could the money be used for other things. City Manager Fleming explained if the project is delayed the money cannot be used for anything else because if the railroad comes forward, the funds must be available for the project to go forward. There are some projects theoretically, if the City has complete control that could be delayed until later in the year and the money used for something else. The timing of the funding in 2015 and 2016 are committed, but after 2017 there is more flexibility in the CIP Budget. He noted delaying the projects in 2015 would not help. FINANCIAL OVERVIEW