In a recent city council meeting, members engaged in a detailed discussion regarding the upcoming budget and the proposed levy increase for the city of Forest Lake. The current preliminary levy stands at a 13.2% increase, which has raised concerns among council members and residents alike about its impact on taxpayers.

Council member Erickson emphasized the need for a more structured policy regarding the allocation of surplus funds, suggesting that any excess revenue should be directed towards reducing future levies or funding capital improvements, rather than being left unallocated. He expressed apprehension about the potential for future councils to misuse surplus funds, referring to it as a \"slush fund.\"

The conversation also touched on the city's fund balance policy, which currently recommends maintaining a balance of 50%. Some council members argued for a review of this policy, suggesting that a lower target could alleviate immediate financial pressures while still allowing for necessary funding of projects, particularly in parks and infrastructure.

A proposal to reduce the levy by $250,000 was discussed, which would lower the increase to approximately 11.5%. This adjustment would result in a tax decrease of about $25 for the average homeowner, a move that some council members believe would be more palatable to residents.

The council is also preparing for upcoming negotiations on three union contracts, which adds another layer of uncertainty to the budget process. Staff indicated that while there are funds allocated for these negotiations, the exact financial implications remain unclear.

As the council approaches its next meeting on September 23, where a resolution for the preliminary levy must be approved, members are tasked with balancing the need for fiscal responsibility with the demands of maintaining and improving city services. The discussions highlighted a collective desire to ensure that any financial decisions made are transparent and in the best interest of the community, while also addressing the pressing need for infrastructure improvements and deferred maintenance.

The council's deliberations reflect a broader commitment to responsible financial management, with an eye towards both current needs and future sustainability.