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Revised interest estimate and other adjustments create roughly $300,000 surplus; council discusses using funds for sidewalks
Summary
A new interest-rate calculation added roughly $165,000 in projected revenue and produced about a $300,000 general-fund surplus; council weighed restoring reserves versus using the money for pedestrian improvements tied to a June grant deadline.
City finance staff reported a revised method for projecting interest revenue and several budget corrections that together increased projected interest income by roughly $165,000 and produced an estimated general-fund surplus of about $300,000 in the tentative budget.
David (staff member) explained that the city reworked its interest projection to apply an estimated 3.5% return on average fund balances; the adjustment raised expected interest receipts citywide and allowed the budget to program additional items while maintaining reserves. "It created about 165,000 more interest revenue in our various fund budgets," David said.
Council then discussed options for the unallocated surplus. Staff said one choice is to leave the funds as reserves to move the city closer to its long-term reserve goal; another is to commit the money to a pedestrian/intersection improvement at 10400/6000 West (a first-phase package of curb, gutter and a tailings pedestrian path estimated around $250,000). Chris (engineering staff) walked the council through a conceptual first phase that would add about 350 linear feet of curb and gutter, repair asphalt and add a pedestrian path connecting to existing sidewalks; staff noted the site may be eligible for a Safe Routes grant that has a June 26 application deadline and that putting some local funding in place could strengthen a grant application.
Council members were split about immediately spending the surplus because the budget still might need to cover public-safety staffing added after the tentative draft. The mayor and several members urged keeping the funds as reserves unless council decides to pursue the grant; others said starting design and a small local match could boost the city's chance to secure state or federal funding.
Ending: Council instructed staff to continue refining numbers and to prepare a grant-ready scope for the 10400/6000 West pedestrian project so the city can apply by the deadline; the final decision whether to commit surplus funds will be made before final budget adoption.
