Although one City Council member proposed a $150,000 budget reduction Monday night, other members weren’t willing to cut the funds, which are used for unplanned expenditures.

Council member Roger Boughton proposed the reduction, which would eliminate the city’s contingency line item, which has $150,000 budgeted for 2012.

Contingency is used to fund unplanned expenditures and capital improvement. City Administrator Jim Hurm cautioned the council about eliminating the proposed amount entirely.

“If you go this year without (a contingency fund), you’re going to need to make it up eventually,” Hurm said.

Finance Director Tom Dankert and Mayor Tom Stiehm compared eliminating the contingency to the Minnesota Legislature pushing off payments until the future.

“Now we’re talking about doing the same thing we’ve criticized the state for,” Stiehm said.

“Kicked it down the road is a good term for it,” Dankert added.

In previous council work sessions, city staff has said some departments have about a 2 percent carryover at the end of each year after not using their entire budget. Boughton said this could add up to about $363,000, which could be transferred into a contingency fund at the end of the year.

Dankert suggested the council direct each department to reduce its budget by three percent to ensure the funds would be available rather than hoping for them at the end of the year. Council member Brian McAlister opposed eliminating the contingency fund at all.

“I understand people are upset about a tax increase, but we’ve bitten the bullet,” McAlister said. “… We have no clue what the Legislature is going to do next year. We’ve made an honest effort at setting a decent budget. I’m good right where we’re at.”

Boughton made a motion to approve the elimination of the fund, but nobody seconded it. No other motions were made to reduce the tax levy.

However, council members voted to quit contributing $1,250 to the county for a health officer. The $1,250 will be transferred into the account to fund the Law Enforcement Center remodel.