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ITEM #: 12.
DATE: 03/24/2025
AI #:2499

CITY COUNCIL ACTION REPORT

SUBJECT:

DISCRETIONARY FUND POLICY UPDATE AND AUTHORIZATION FOR BUDGET AMENDMENT

STAFF PRESENTER(S):

Jared Askelson, Finance Director

SUMMARY

This action will update the City Council's Discretionary Fund Policy to allow the carry forward of unspent funds for one fiscal year. Additionally, the action authorizes an amendment to the budget to change the amount of Discretionary Funds.

STRATEGIC PLAN ALIGNMENT

RECOMMENDATION

Approve the Discretionary Fund Policy update and Budget Amendment. (Jared Askelson, Finance Director)

FISCAL IMPACT

The fiscal year (FY) 2025 budget includes $18,000 in the City Council operating budget for Discretionary Funds, $3,000 for the Mayor and $2,500 for each Council member. The FY2025 budget also included $19,500 in contingency funds, specifically for the purpose of changing the Discretionary Fund amounts at a future date. This action will amend the amounts to $7,500 for the Mayor and $5,000 for each Council member using the contingency funds (Attachment B).

BACKGROUND AND PREVIOUS ACTIONS

During the FY2025 budget process, City Council discussed increasing Discretionary Funds and included $19,500 in contingency when adopting the budget on June 10, 2024. On July 1, 2024, the City Council adopted a policy to identify the eligible and ineligible uses and procedures related to Discretionary Funds. At the City Council Retreat on February 18, 2025, City Council discussed an update to the Discretionary Fund Policy allowing for the carryover of unused funds from one fiscal year to the next as well as a budget amendment to add the additional $19,500 of contingency to the Discretionary Fund for FY2025.

STAFF ANALYSIS

The City Council Discretionary Fund Policy (Attachment A) allows for the change in amounts during the fiscal year using a budget amendment. This action is in compliance with the policy. Currently, unspent Discretionary Funds are not eligible for carry forward into future fiscal years. This action will allow for unspent funds to be carried forward for one fiscal year beginning with FY2025 Discretionary Fund amounts.

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