A surplus in the general fund meant city councilors Monday night considered what to do with — and how to spend — money it could still dole out and stay within the city’s fund balance policy.

According to City Finance Director Kristi Brutlag at Monday’s City Council work session, the general fund had $701,938 revenue over expenditures in 2018. The city’s unreserved fund balance at the end of 2018 was over $9.1 million. The city’s fund balance policy requires them to set aside 45 percent of the next year’s budget.

This would leave just over $1.7 million for the city to consider transferring to different funds, City Manager Chad Adams said. He recommended a $1.25 million “broad outline” as a starting point for City Council discussion. Ideas included:

• Flooding/stormwater capital projects: $250,000 to prepare a plan and fund future projects, potentially at the Freeborn County Fairgrounds or on South Broadway Avenue

• Economic development fund: $250,000 to replenish funds

• Housing: $250,000 to start a housing program, rehabilitate an area or as cash incentive for a developer

• Building maintenance fund: $250,000 specifically for the repurposing of City Hall as an addition to funds already budgeted, providing some flexibility to spend for new projects that may come up

• Blazing Star Landing/Community Center: $150,000 as seed money for technical support — engineering, architectural or design — or lobbying to advance a bonding bill

• Snyder Field: $100,000 for renovations with potential matching donations from the community

The $1.25 million in potential allocations would leave an additional approximately $500,000, which could be used for debt service levy reduction or for something else, Adams said. However, the city has not ever allocated down to the 45 percent required by the fund balance policy, he said, which is why he recommended $1.25 million. Adams also noted the city had already committed $500,000 to debt service levy reduction outside of this surplus.

Albert Lea Mayor Vern Rasmussen Jr. expressed support for transferring some funds to support work alleviating flooding.

“I think it’s a no-brainer that we have got to put something there,” he said.

Adams said funding dedicated to flooding and stormwater capital projects could be for standalone projects or a piece of a broader project.

Third Ward Councilor Jason Howland said he considered much of the list to be undefined — with the exception of the economic development fund — and therefore hard to say yes to.

Specifically, the facilities at Snyder Field would involve some uncertainty, Adams said, as the city leases the land on a 10-year term and therefore has the potential to make improvements on land that it may not always be able to use.

“You hate to spend all this money on improving the facility and then, you know, it gets pulled, the rug gets pulled out from underneath you,” Howland said.

Second Ward Councilor Larry Baker said he would like to see the city continue setting aside money for work on Blazing Star Landing.

“I think we really need to look at what we’re going to do and get it formulated this year,” Baker said.

The City Council did not allocate funds Monday. Adams said the council would want to authorize transfers at the next meeting as part of the 2018 budget, but the city could also wait until later in the year to formulate a plan and conduct some or all of the transfers.

“Continue to think of creative ideas,” Adams said to councilors.