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City Council Minutes <br />September 5, 2017 <br />Page 6 <br />and should last longer than 4 years. We also had direction to seek the best resale <br />value which may not be a good practice. <br />Mayor Dietz expressed concerns with the Equipment Replacement Fund going <br />negative next year due to scheduled replacements. <br />Mr. Pormer stated the requested fire engine, like other higher cost <br />vehicles/equipment, such as snow plows and the vac-tron, could be made with a <br />different type of investment such as equipment certificates or an internal loan. <br />Mayor Dietz questioned past practice with funds paid to the city as Payment In Lieu <br />of Taxes (PILOT) by Elk River Municipal Utilities. <br />Mr. Pormer stated the PILOT funds were split between the General Fund and the <br />Equipment Replacement Fund when the city did not receive Local Government Aid <br />(LGA). When the state legislature resumed LGA payments a few years ago, the <br />finance director recommended placing those funds in the Equipment Replacement <br />Fund as we have no control if the state withholds future payments. At that time, <br />ERMU PILOT transfers were increased to the General Fund to offset the projected <br />increase. He noted Council has been utilizing a lot of short term solutions to balance <br />past budgets without having property owners pay their true tax share for current <br />services. He stated Elk River has a number of revenue advantages other communities <br />don't have, however following the recession, the city has sheltered the true cost of <br />living in the community which has resulted in funding shortages for parks, recreation <br />facilities, vehicles, and information technology. He stated at some point Council is <br />going to have to levy money to pay for things. He further noted community <br />members/organizations have provided us numerous assets, but long-term <br />maintenance/replacement also needs to be considered. <br />Mayor Dietz stated the $93,500 in vehicle funding requests can be paid in the short- <br />term but noted the city would be kicking the problem down the road. He questioned <br />if a new vehicle is needed for the new police positions or if there were other <br />alternatives available. <br />Staff would review the matter. <br />Council consensus was to move $93,500 from the General Fund to the <br />Equipment Replacement Fund. <br />Councilmember Wagner questioned how the requested communications position fits <br />with the existing position. <br />Mr. Pormer stated the current coordinator's role is assisting staff when needed and <br />making sure (branding/grammar) polices are being met. He stated the <br />communications coordinator doesn't create content but assists other staff where <br />needed with their content. He noted the new position will have more of a marketing <br />P 01! t R f I 01 <br />ATUR� <br />