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HomeMy WebLinkAbout12/22/1997COUNCIL WORK SESSION December 15, 1997 5:30 p.m. Large Conference Room Members present: Mayor Rooff, Getty, Jordan, Krizek, Anders, Collier, Mollenhoff. Members absent: Murphy. Moved by Getty, seconded by Jordan that the Agenda, as proposed, be approved. Ayes: Five. Absent: Murphy, Mollenhoff. Motion carried. Mayor Rooff reviewed the material that was presented to Moodys for the city's bond rating. A city ordinance was adopted in F.Y. 1994 governing the General Fund cash balance requiring a minimum level of 5 percent of annual revenue. The city has been in compliance with the ordinance since June 30, 1994. Councilperson Mollenhoff now present at 5:32 p.m. The General Fund cash balance increased to $4.6 million or 17 percent of revenues as of June 30, 1996. General fund receipts and other sources exceeded disbursements by $934,067 in FY 1994, $1,671,887 in F.Y. 1995 and $1,808,661 in F.Y. 1996. Mayor Rooff reviewed with the Council the 5 year General Fund Budget Comparison. The city completed conversion of cash basis to Generally Accepted Accounting Principles. Financial reporting changes resulted in a General Fund balance in excess of $6.9 million and a $4.5 million unreserved balance as of June 30, 1996. The fund accounts were consolidated from 120 to 26 within a two year period to comply with G.A.A.P. standards. The G.A.A.P. conversion removed two major qualifications previously reported in city cash audit reports. Net operating budgets have varied less than 5 percent over five years. The Finance Committee continues to exercise control over budget line -item expenditure authorizations and all budget amendments. The city has cut the property tax rate and residential tax bill from $20.05 in F.Y. 1994 to $18.50 in F.Y. 1998. The F.Y. 1998 budget goals of the Mayor and Council included: re -opening Fire Station #6, adopting a balanced budget that would allow a managed level of growth in the General Fund balance while fully funding prioritized levels of service, adopting a budget and property tax levy which creates a tax stabilization bank to allow the city to continue reductions in the property tax rate through F.Y. 2000 as a result of state rollback. projections, establishing a General Fund payroll reserve for F.Y. 2000 when a 27th payroll must be funded. .With no further business before the council, it was moved by Getty, ;conded by Mollenhoff that the meeting be adjourned. at 5:45 p.m. ,Ayes: Six. Absent: Murphy. Motion carried. Nancy Eckert City Clerk