10-07-2014 City Council Minutes - Laserfiche WebLink

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City Council Minutes October 7, 2014 Page 3 of 8 levy. He noted that due to the 3-year equalization of the two taxing districts, this may be a good time to consider using fund balance to reduce the 2015 levy. Mike Loven explained that because the new Highway 371 project start date has recently moved to 2016 the City will have to move faster toward rapid infiltration basin method for treating the City's wastewater. City Engineer Tim Houle noted that a preliminary cost for this is $1.7 million dollars and stated that this is not included in the capital improvement plan. 5.2. Budget Discussions Nancy Malecha discussed the present preliminary levy and asked if the Council had any proposed changes to the budget. Council Member Pederson stated that although there is not much to cut in the preliminary budget he still wants the preliminary levy reduced. Mayor Adams stated that she feels there is nothing wasteful in the budget. Council discussion took place regarding the proposed Old Highway 371 project which is a line item in the preliminary 2015 general fund budget. Mike Loven explained that the budget amount or $175,000 will only allow minimum improvements to the road. He explained that if the entire $175,000 is used for the Old Highway 371 project, there will be no funding left to complete other miscellaneous street improvements that may come up during 2015. The Mayor asked if there was a consensus of the Council that the Old Highway 371 project was a priority for 2015. Four of the five Council Members concurred that this was a necessary project. Council Member Pederson stated that he cannot state that this is a priority as he has not seen the results of the street criteria plan which will identify street repair priorities. The Council continued to discuss the Old Highway 371 proposed project. There was a concern that if the project is done, it should not be completed by doing the bare minimum. The Council discussed adding amenities such as sidewalks, street lights, bike paths, etc. It was the consensus of the Council to assign $100,000 from the roads and street capital outlay budget for the Old Highway 371 project. The Council stated that the Engineer should provide an estimate for a full scale project and that the City consider bonding for this project with a portion of the bond payment to be paid in 2015. The Council noted that the remaining $75,000 can be used for other street related improvements. It was the consensus of the Council that it would be all right to use fund balance to reduce the 2015 general fund levy, if necessary.