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MINUTES <br />CITY COUNCIL <br />JULY 16, 1992 <br />financial statements, Voto indicated that the funds of <br />the City are very sound. Interest earnings are down <br />largely because the City has less money to invest and <br />because of lower interest rates. <br />Voto noted that there were some TIF taxes receivable <br />delinquencies during 1991 on the North Star Turf <br />project, however, that situation has now been resolved. <br />There is the potential for delinquencies on the <br />Boosalis project, however, Voto noted that the City <br />Administrator is monitoring this situation. <br />Voto again noted the increase in the General Fund <br />balance for 1991 of $28,887, and reviewed with the <br />Council the reasons for maintaining reserves as <br />outlined on page 24 of the report. Voto reviewed the <br />City's reserve amounts as outlined on page 27 of the <br />report, indicating that these balances put the City in <br />an excellent position, exactly where the City wants to <br />be. <br />Scalze asked if other City's maintained the kinds of <br />reserves that Little Canada has. <br />Voto replied that they do, and indicated that the <br />reserve balances the City has are his recommendation <br />for basic reserves for every city, and he views these <br />as minimum. <br />The City Administrator suggested that the City might <br />want to consider increasing the general contingency <br />reserve amount to one that would equal Homestead <br />Credits, given the discussion about the possibility of <br />the State reducing these credits. <br />Voto reviewed the City's debt service levies, and it <br />was pointed out that due to auditing requirements debt <br />service levies are inflated by approximately $1.6 <br />million. This amount involves bonds which was <br />cross-over refunded with escrow monies, but must remain <br />on the books until the bonds are called. <br />Voto then reviewed the Capital Project Funds, which he <br />reported are in good shape, as well as the Enterprise <br />Funds. Voto noted that the Enterprise Fund have shown <br />a profit for the past several years. <br />Voto noted that for the past two years the City has <br />included depreciation in the Capital Replacement Fund <br />and set aside $373,000 for replacement of utility <br />systems. <br />Page 3 <br />