City staff present reserve-policy goals; council schedules special budget session for Sept. 30

City staff presented a draft financial-reserve policy and a timeline for finalizing the fiscal-year budget and the council agreed to a special call meeting immediately after the election canvass on Sept. 30 to continue budget work. City staff said the policy is intended to set clear financial priorities, strengthen internal controls and remove audit exceptions so that the city can better plan for future challenges. "You gotta build our reserve," the presenter said when describing the policy's goals. The draft sets a minimum target of 30% of annual expenses for the General Fund and recommends a 50% goal as an aspirational target; parks and recreation is targeted at 30%, and self-supporting enterprise funds such as golf, the airport and municipal court were recommended to hold 50% in fund balance to avoid transfers from the General Fund. The presenter told the council that portions of the payroll and employee benefits sections and the grants policy are still in progress and that she expected to circulate a complete draft to council members by Thursday of the week of the meeting. She also said the results of the citywide salary study have returned and that the mayor, Kristen and she would meet to finalize salary-related items. On the budget calendar, the presenter asked for council guidance on one outstanding appropriation request from Habitat for Humanity — the group had asked for either money or land — and said the budget could be finalized once the council gives direction on that item. Council members discussed possible work-session dates. After a short exchange, members agreed to hold a special call meeting immediately following the official canvass on Sept. 30; staff described that arrangement as a canvas, work session and then special meeting in sequence so the council could receive information, ask questions and, if ready, take formal action. The presenter cautioned that if the council declined the Sept. 30 meeting, the city would have to operate under the prior year’s budget until a replacement budget is adopted. No formal vote record was recorded in the transcript; the council settled on the Sept. 30 schedule by consensus during the meeting. Ending: Staff said it will distribute the completed draft policies and the salary-study recommendations to council members in advance of the Sept. 30 work session and special call so members can submit questions ahead of the meeting.