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<br />Budget Study Session <br />May 11, 2005 <br /> <br />Edward J. McCarthy, 7101 Princeton, said he did not care whether economic <br />development was “black” or ‘white” but he is concerned that economic development and <br />money were the issue at stake. He did not see expansion or moving of the transfer <br />station in the Economic Development Plan. He asked if the City wanted to pursue this <br />issue. He sees it as a tremendous economic development instead of tax increases. If <br />this were moved and expanded and generated revenue, it would be good for the City. <br /> <br />Secondly, he asked about performance measurement, noting the activity of the police <br />department and how it affected his home insurance premiums. He sees this as a <br />performance measurement to use to evaluate the police department and the fire <br />department. Mr. Ollendorff responded that perhaps the “City had not bragged enough <br />about it” and Mr. McCarthy agreed and suggested that it should be used in the budget <br />to justify changes. <br /> <br />Mr. McCathy said he hoped changes in the Planning Department would be approved <br />and then he said the contingency fund fee was “a little tight” at one per cent. The City <br />Manager said once the budget is approved, the contingency will disappear and that <br />th <br />money will be allocated. This will be discussed on May 18. He provided additional <br />comments about the 15 per cent, $3 million dollar reserve fund and how it operates. He <br />does not think that both a reserve and a contingency fund are needed. Many cities do <br />have both. This preliminary budget shows a contingency, but it will be allocated later. <br />The City’s budget is typically very tight and amounts must be justified by the various <br />departments to the exact amounts. Mr. Wagner commented that revenues, not <br />expenditures, are volatile. Mr. Ollendorff said if there is a separate contingency fund <br />each year, he would argue that a big reserve is not needed. Finally, Mr. McCarthy <br />asked about a formatting issue and why “one column cannot be annualized?” <br /> <br />Ms. Welsch said she mistook contingency with reserve. <br /> <br />ADJOURNMENT <br /> <br />The Budget Session adjourned at 9:00 p.m. The next installment of budget study <br />th <br />sessions would be on May 18 in the Library Auditorium. <br /> <br /> <br /> <br />__________________________________ <br />Leisha Meine Forsythe, City Clerk <br />Page 9 <br />