City Council Minutes 2014 10 14 - Laserfiche WebLink

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City Council Meeting Minutes October 14, 2014 Page 21 of 23 Council member Lipton stated his understanding in the general fund there is an overall deficit of $88,000, which includes revenues from the General Fund, CIP and operating expenses. Finance Director Watson explained the expenditures exceed the revenues by $570,000, but with the turn -back, staff is projecting the ending fund balance would be at 15.5% of annual expenditures. The City's limit is 15 %. Council member Lipton wanted to see increases in the fund balance for the general fund in 2015. He requested the City Manager come back with a budget, showing a surplus of $250,000, as a down payment of building up the fund balance surpluses. He expressed his concern over the uncertainty of a number of projects and initiatives and stated if the fund balance is positive there would be room to deal with issues in 2015. Mayor Pro Tem Dalton stated the budget is set on a very responsible course based on events of last year's flood. He felt the fund balance will grow. He was not in favor of a new budget with a $250,000 surplus. He did not support Council member Lipton's suggestion. Mayor Muckle agreed with Mayor Pro Tem Dalton. Council member Stolzmann agreed with Council member Lipton and felt there were projects, which could be delayed a year, which would help bring up the reserves. She felt there were worthy projects, which were not funded. Council member Loo also agreed with targeting $250,000 to increase the reserves. Council member Keany stated there is a fiscal policy set by previous Councils. He felt if Council wants to discuss altering the fiscal policy, it should be done at a future meeting, but he did not support making changes on the fly. Council member Lipton was concerned with the minimum amount in the General Fund for the next two to three years. He stated it was predicated on a lot of assumptions on the revenue and expense side. He felt it was an issue of setting priorities and not a matter that just because the City has the money the money has to be spent. He stated he would rather limit the amount of money given in the beginning and felt it was prudent. City Manager Fleming voiced his appreciation of the perspectives voiced by the City Council. He referred to the list of assumptions for each of the revenue sources, which was the driving source for the budget and asked Council to direct staff if those assumptions are reasonable. Council member Moss supported a $250,000 overall reduction in the budget. Mayor Muckle stated the Council would then be changing their fiscal policy. Council member Stolzmann felt it was being cautionary and helping build up the reserves. Mayor Pro Tem Dalton noted Finance Director Watson's projections are very conservative. He did not support changing the policy. Council member Lipton stated his understanding of the fiscal policy is a minimum fund balance of 15 %, however it does