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MINi)TES <br />City Council <br />July 28, 1993 <br />was very high. They found out that the Contracting <br />Jurisdictions had been combined with Lake Owasso Home for <br />worker's compensation. Therefore, they were subsidizing <br />that operation through the Sheriff's contract. The <br />Sheriff's Department pursued this and got the contract <br />jurisdictions a$111,000 rebate over a couple of premium <br />years. The City Administrator stated that Little Canada's <br />share of that rebate was about $20,000. <br />The City Administrator also indicated that when the League <br />of Minnesota Cities' Insurance Trust has a good year, they <br />will rebate insurance premiums at the end of the year. He <br />stated that the rebate the City received from that in 1992 <br />was $13,000. However, some years the City does not get <br />anything so this is hard to budget for. <br />The City Administrator stated that on the expense side, <br />budgeting for fire department and city hall costs were high <br />due to the new facilities. Public Safety expenses were less <br />than budgeted due to the worker's compensation changes. <br />Public Works expenses were less due to lower operating costs <br />such as for seal coating and snow removal. Community <br />Services expenses were less due to the surplus of funds <br />carried over from Day Camp. The Recreation programs were <br />budgeted higher since we were just taking them over and he <br />was unsure what the expenses would be. <br />Voto stated that pages 23 and 24 outline the reasons and <br />benefits for reserve balances. He indicated that one of the <br />benefits of reserves is the absence of a deficit. <br />Voto indicated that there are sufficient reserves in the <br />General Fund to cover designated balances such as cash flow, <br />contingent employee benefits, prepaid costs, and general <br />contingency as shown on page 25. He stated that reserve <br />balance indicates financial integrity, independence, and <br />management. <br />Morelan asked what were the contingent employee benefits <br />Voto mentioned. Voto stated that this would include <br />employee sick pay, comp pay, etc, where the City does not <br />control when the money is paid out. <br />Voto stated that the General Fund and Specialty Funds are <br />healthy due to past practices and conservativeness of the <br />City's budgeting process. <br />-5- <br />