04-12-2004 CC MIN - Laserfiche WebLink

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City Council Minutes Page 5 April 12, 2004 representative on site and functions as the general contractor and that they continue to call and try to get the subcontractors to respond. MOVED BY COUNCILMEMBER KUESTER AND SECONDED BY COUNCILMEMBER TVEITE TO APPROVE THE PAYMENT OF THE PAST DUE DUMPSTER BILL. MOTION CARRIED 5-0. 5.6 Consider 2003 General Fund Balance Allocation Finance Director Lot4 Johnson explained that the policy on the General Fund Balance is to have an unreserved balance of not less than 40 percent of the next year's budgeted expenditures with this calculation made at the end of each fiscal year. The council may allocate any amount over the minimum 40 percent to other purposes. The policy requires a 2003 fund balance of $3,150,160 to meet the 40 percent minimum leaving $581,889 available for allocation by the Council. However, the 2004 budget calls for use of reserves of $117,000 so the amount available for allocation is $464,889. If 2002's 41.50 percent balance is maintained, the balance available after reserving $117,000 is $346,758. Since there is no guarantee of an ongoing fund balance in excess of the minimum reserve requirement, it is appropriate to use the funds for specific uses and not to fund ongoing programs or new programs that will require additional funding above the amount currently available for allocation. Mayor Klinzing stated that she would like to be able to give relief to the taxpayers. Finance Director Johnson stated that the council could use this money for tax relief by setting it aside. Council wishes to have the discretion each year to do what it felt was the highest priority at the time. It was the consensus of the Council to maintain a fund balance of 41.50 percent of the next year's budget. The Council indicated its support to fund the request for a Building Department intern and the City share of the 2004 COPS grant program with the fund balance. The Council discussed the theatre payment, wage adjustments and equipment items. Staff will come back with a resolution for Council's approval. 5.7 Consider 2004 Local 271 Union Contract-Police Sergeants City Administrator Pat Kdaers explained that City representatives and the Police Sergeants Union Local 271 representatives have reached tentative agreement to changes in the contract and the union has accepted these changes. MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY COUNCILMEMBER TVEITE TO APPROVE THE UNION CONTRACT BETWEEN THE CITY OF ELK RIVER AND POLICE SRGEANTS UNION LOCAL 271 WITH CHANGES AS OUTLINED IN THE MEMO OF APRIL 12, 2004. MOTION CARRIED 5-0. 5.8 Consider Building Inspection Intern MOVED BY COUNCILMEMBER TVEITE AND SECONDED BY COUNCILMEMBER DIETZ TO APPROVE A SIX-MONTH INTERN POSITION TO ASSIST WITH BUILDING INSPECTIONS. MOTION CARRIED 5-0.