HomeMy WebLinkAbout09/20/93CITY COUNCIL WORK .JSION
September 20, 1993
5:45 p.m.
Large Conference Room
Roll call: Mayor Manning, Buck, Wright, Fox, Lemke.
Members absent: Angel, Dell and Budak.
The purpose of the meeting was to provide an overall final budget
status for the year -ending June 30, 1993 and a F.Y. 1994 budget
status as of August 31, 1993 for the city's general fund. The
beginning general fund cash reserve for the year beginning July 1,
1992 was $742,028. The ending cash balance as of June 30, 1993 was
$283,694 which reflects the use of $250,000 cash to operate during
the fiscal year and additional expenditures. Of the ending cash
balance, $204,546 is the health insurance reserve. The June 30th
report reflects a 2.5% across the board budget cut that was
implemented for all general fund departments in November, 1992.
This alleviated the potential deficit in the general fund.
Following certification of the F.Y. 1994 budget and prior to
commencement of the budget year, the council took action to amend
the F.Y. 1994 budget resulting in cuts to the general fund of
$313,000 in both the expenditure and revenue side of the budget.
This action was taken to enhance the projected year-end balance for
June 30, 1994 by approximately $100,000 for an ending year
projected cash balance of $383,000. The budget status as of August
31, 1993 contemplates that the city will fall short of its
projected year-end balance of approximately $66,000 which in large
part is due to the uncertainty of the golf revenue that has been
budgeted for the current year. Until this revenue source is
identified, it will continue to show as a projected revenue
deficit.
The continuing need to increase the year-end cash balance is
reflected by the adoption of Ordinance No. 3963 which establishes
5% as a minimum level of general fund cash balance. This is
crucial in the city's maintenance of its current Baa bond rating
and in reestablishing a strengthened financial position.
Councilperson Fox suggested that future reports include revenue and
expenses to the date of reporting as compared to the budgeted
amounts.
It was noted that golf revenues for the year ending June 30, 1993
exceeded expenses by approximately $25,000. Discussion was heard
on establishing this activity as a proprietary fund. This will
allow all expenses to be expensed against the budget and give a
true cost of operation. It was noted that all expenses related to
the golf course are not being expensed against the budget and that
capital repair has been virtually non-existent.
City staff indicated that they would begin working on the
accounting procedures to implement such a proprietary account and
that a resolution would be presented to the city council declaring
the golf course expenses and revenues as a proprietary fund.
No official action was taken and the meeting was adjourned at 6:20
p.m.
Michelle Temeyer
Acting Clerk/Auditor