Council OKs ARPA dollars for General Fund deficit | News, Sports, Jobs

City Finance Director Diana Steiner brought an additional deficit to the attention of the council and sought direction on how to balance the budget. The council adopted a budget last March which showed a deficit of $139,193 and directed staff to use the fund balance for it.

At the beginning of the current fiscal year, Steiner said some mistakes were found while updating payroll. The deficit was estimated at $190,504, but combined with increases in utilities and insurance, it was actually $32,000 higher.

“Would you want to cover the $32,000 with ARPA funds or the full deficit, which is going to come out of the fund balance?” Steiner asked. “We will continue to go back and look at cost savings. There is right now more vacancies, but at some point, I need to cut off the budget and say this is where we are.”

Mayor Pro-Tem Mike Ladehoff, who led the meeting with Mayor Joel Greer absent, asked Steiner for her recommendation.

Mayor Pro-Tem Mike Ladehoff opens the floor up for comments from his fellow council members during Monday’s regular meeting.

“Using ARPA is the easiest. If we don’t spend it, we will carry it forward in fund balance,” Steiner said. “With the time factor, it would be easier to budget in ARPA and move on and continue to look for savings through the remainder of the fiscal year.”

Councilor Gabe Isom asked what the harm would be from using the city’s available cash balance instead of ARPA. City administrator Jessica Kinser said the fund balance is more flexible, while ARPA funds, which must be allocated by the end of the calendar year in 2024, have stricter uses. Heading into Monday’s meeting, the city had $730,523 in unallocated ARPA funds.

“No matter what we do or what recommendation we give, when are we going to start having the bigger conversations about fixing the hole in the bucket?” said Councilor Gary Thompson. “We’ve got a bigger problem. We are living beyond our means. When are we going to fix that?”

Kinser clarified the city’s deficit issue has been ongoing for several years. She said the council will be engaged in conversations throughout this calendar year on new ways to improve the health of the budget. One suggestion she mentioned was possibly implementing franchise fees.

“There should be a conversation about the franchise fee as an untapped revenue source that is available to us, and if it’s something you would want to proceed with,” Kinser said. “If that’s not something you want to proceed with, that’s where we want your help as a council in identifying which service areas you would want reductions in. That’s really where our next step is.”

Michelle Spohnheimer, housing and community development director, updates the city council on an agenda item relating to building permit fees in the city.

Councilor Dex Walker moved to use ARPA for the full deficit of $231,504, and Jeff Schneider seconded. The motion passed with Isom as the only vote against.

In other business

The council approved the adoption of the 2022-23 Strategic Plan. Kinser said nothing has changed since previous meetings when it was discussed. Staff will report to the council on a quarterly basis for updates on its top priorities according to the plan.

When public comment was opened, City Planner Caleb Knutson said he was disappointed by the discussion about removing language diversity, equity and inclusion from the strategic plan. The council voted in favor of leaving the language in the plan.

“When I read the comments from the strategic plan last time about DEI, I was incredibly disappointed and hurt,” Knutson said. “Being a public servant, a man of color, I did not feel supported. DEI is important. It needs to be on there, and it sends a strong message when we don’t support it as a community or as an organization.”

City planner Caleb Knutson said he was “disappointed” by comments about removing diversity, equity and inclusion from the city’s strategic plan. Language relating to DEI directives remained in the strategic plan after some debate.