| ITEM #: 3. DATE: 06/03/2024 AI #:2003 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | CITY COUNCIL DISCRETIONARY FUNDS |
| STAFF PRESENTER(S): | Jared Askelson, Finance Director |
Summary
Discussion of the governing documents, use, and amount of City Council's Discretionary Funds. The presentation will include an overview of the city's existing guidance, comparisons to other cities, historical spending, and a summary of related existing budgets. (Jared Askelson, Finance Director)
FISCAL IMPACT
There is no fiscal impact with this discussion item. Future Council actions may result including potential changes to the amount of Discretionary Funds that are currently budgeted in the amount of $18,000.
BACKGROUND AND PREVIOUS ACTIONS
During the FY2025 City Manager's Recommended Budget presentation on April 8, 2024, City Council discussed a potential increase to Discretionary Funds from $18,000 to $37,500. A separate work session was requested to review the governing documents and comparative data from other municipalities to help establish the appropriate amount and usage of Discretionary Funds. The FY2025 Tentative budget adopted on May 20 included the potential $19,500 increase set aside in contingency for potential Council action following this work session.
STAFF ANALYSIS
The amount of the Discretionary Funds has historically been established with the adoption of the annual budget. Changes to the amount have occurred during the budget process. The guidance for the appropriate use of Discretionary Funds currently comes from the staff generated Council Resource Guide. The Policy and Administrative Guideline Manual indirectly guides the use of funds as staff follow them to complete transactions on the Council's behalf. No action has been taken by Council to adopt the appropriate use of Discretionary Funds, so neither of these sources officially apply to the Council. Staff gathered comparison data from other municipalities, which will be presented at this work session. Other existing related budgets and historical spending of Discretionary funds will be presented as well.