Kiffi Summa, LWV Observer
The meeting was called to order just moments before 5 PM, by Mayor Lansing. All members present, except for C. Arnie Nelson.
There was only 1 item on the agenda: “Consider amending the 2008 General Fund Budget for the Governor’s un-allotment of $355,263 in the December 2008 Local Government Aid payment. Resolution 2008 – 157″
There were no public comments.
Finance Director Kathleen McBride explained that the sudden loss of $355,263 in state aid was the result of Governor Pawlenty’s decision to use his un-allotment authority to help balance the State’s current year budget which ends on June 30th of next year. With the aid cut coming just before the close of the City’s fiscal year, considering any type of expenditure reduction would be out of the question. She felt the only choice was to appropriate a designated fund balance to offset the loss of aid.
The City Council approved a new fund designation in 2007 at the recommendation of the City’s auditors. There are several designations provided for in this new policy, one of which is Revenue Stabilization. The amount in the fund designated for that purpose was $722,750; the actual amount appropriated from this fund balance was $308,801, since the December 15th budget amendment showed a small surplus of $46,462.
VOTE: All Aye
Meeting Adjourned at 5:04:30 PM.