How Should City Spend $1 Million in Excess Reserve Funds?

Years of conservative budgeting have left the city with about $1 million in reserve funds to use this year.

During a Tuesday night work session, the Johnston City Council discussed the fiscal 2013 budget and one thing was fairly certain: The city could fund a number of one-time expenses with the money.

Leaders discussed a range of options for spending the money -- from lowering the property tax rate to buying city equipment to boosting the funding for local economic development efforts.

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Each year, the city strives to maintain a reserve fund at 25 percent of the amount spent in the general fund. At the end of the 2014 fiscal year, the reserve is expected to be 37 percent, City Manager Jim Sanders said during the work session.

Most of the extra revenu could be spent on the capital equipment program, which replaces city vehicles and other equipment.

This year's capital purchases are estimated to total $214,400 and replace the following:

• Police Department - 1998 Ford Expedition, $26,500
• Police Department - 2006 Ford Crown Victoria, $26,400
• Police Department - in-car cameras, $15,600
• Streets Department - Dodge pickup truck, $27,000
• Streets Department - Bobcat skid loader with bucket, $38,500
• Streets Department - International 7400 truck, $170,000.
• Water Department - crane truck, $78,000
• Water Department - 2005 Ford E-150, $28,800.
• Parks Department - 1991 GMC pickup truck, $35,400
• 1997 Chevrolet pickup truck, $35,400
• Bobcat skid-steer loader, $60,000.
• Library - copier for public use, $5,000.

A portion of the capital equipment fund comes from state road use taxes, said Sanders.

Additional reserve money could give an additional $20,000 to the Johnston Economic Development Corporation and $10,000 more to the Johnston Partnership for Healthy Living.

"I'd be comfortable with taking that from the reserve," Councilman John Taylor said of the additional money for JEDCO. "Maybe after we've done it for a year we'll see how successful he is after that."

Mayor Paula Dierenfeld suggested doing the same with the Partnership's request for additional money.

"Until we know better what their needs are going forward," she said. "I think it's important they come back every year to make a request."

This year's request for additional funding came because the Partnership is now paying rent for its location.

Other items discussed for use of the one-time windfall include:

• mobile data computers for police - $12,500
• in-car video/audio recorders - $15,600
• pickup truck for parks department - $35,4000
• renovations for city hall - $50,000
• a speed trailer - $8,000
• body-worn cameras for police officers - $3,000
• tilt trailer for parks department - $12,000
• Emerald ash borer prevention - $75,000

Additionally, the council discussed what packages could be paid for from the reserve money.

One such item was paramedic training for the fire department. The training will cost an estimated $20,000.

The council will continue to discuss the budget and the possible reduction to the property tax rate at the Feb. 4 meeting.