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• FALCON HEIGHTS CITY COUNCIL NIINUTES _5_ <br />September 10, 2003 <br />Reserve Policv (continued) <br />The City will strive to maintain a total reserve equal to 75% of the average of the <br />previous five-year's actual total expenditures, including capital projects. <br />The reserve will be distributed among the Funds to meet cash flow needs and in <br />anticipation of future expenditures. <br />The City will address an excessive or a deficient reserve on a rolling four-year basis. <br />Certification of the Preliminary Tax Lew for 2004 <br />Mayor Gehrz said the City has lost $200,000 in LGA (local government aid) for 2003 and 2004. <br />This means that the money lost will be taken from City reserves. With the budget that the City is <br />looking at now, there may be $35,000 in additional expenditures, so the City Council is <br />proposing to take $135,000 out of reserves for 2004. The State would allow the City to levy <br />back about 60% of the LGA it is losing, or about $60,000 for 2004, but the City Council is <br />opting not to do that. <br />• Council member Lamb said it is important to emphasize that services will be maintained at or <br />above the level they are now. <br />Council member Talbot said the City is benefiting from the foresight of earlier Councils <br />with regard to fmances. The City is not laying anyone off and services will be maintained <br />at current levels or improved. The City Council is taking a good hard look at how much is right <br />and prudent to hold in reserve. <br />RESOLUTION 2003-16 <br />Kuettel moved adoption of Resolution 2003-16 certifying the preliminary tax levy for 2004 <br />in the amount of $874,338. The motion was unanimously approved. <br />Resolution 03-17, Authorizing the City to Eliminate the 2004 Debt Levy on General <br />Obligation Debt <br />Administrator Worthington explained that each year, the City is required to pass a resolution <br />stating its intention to either levy for the general obligation debt service, or eliminate its ability <br />to levy for the debt. Falcon Heights has never levied for the general obligation debt, and staff is <br />once again recommending that the Council pass a resolution eliminating the 2004 debt levy on <br />general obligation debt. <br />• Council member Lindstrom said the City is doing this because it has suff cient funds on hand. <br />SEPTI OMIN.doc <br />S <br />