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MINUTES <br />CITY COUNCIL <br />JULY 26, 2000 <br />In summarizing the Management Report, Gibbs reported a General Fund <br />balance at the end of 1999 of $75,000. This balance was sufficient to <br />fulfill all reserve requirements. Gibbs also noted that $79,000 was <br />transferred to the Capital Improvement Fund. Gibbs also reported that a <br />review of the Debt Service Funds indicate the City's outstanding <br />indebtedness was lowered to $3,305,000 at December 31, 1999. <br />In reviewing the Capital Project Funds, Gibbs reported $3.7 million in <br />fund balances for the City's various Capital Project Funds. The Rice <br />StreetlLittle Canada Road Fund has a deficit balance of $653,000 as of <br />December 31, 1999. <br />Other issues of importance that Gibbs commented on include that <br />beginning in 1998 GASB 31 requires that the City report investments at <br />fair value in its financial statements. The adjustment to fair value at the <br />end of 1999 was a reduction of $225,000. The City Administrator <br />expressed his concern with this requirement as it relates to our transfer to <br />the General Capital Improvement Fund. He first noted that if the <br />investments are held to maturity, unrealized losses/gains will be <br />eliminated. If a loss occurs, we are under funding the transfer to the <br />Capital Improvement Fund. Even worse, if we have an unrealized gain, <br />we will be transferring more than we should and could set ourselves up for <br />a problem in future years. The Council asked for a policy draft to address <br />this area. Gibbs noted that the City had an excellent property tax <br />collection rate of 99% during 1999. Gibbs pointed out that as a result of <br />GASB 34, the City will be required to make significant changes in <br />accounting and financial reporting by 2004. <br />There being no further business, the workshop meeting was adjourned at <br />I. Fahey, Mayor <br />Hanson, City Administrator <br />