Laserfiche WebLink
MINUTES <br />CITY COUNCIL <br />AUGUST 10, 1994 <br />Voto pointed out that maintenance of the City's reserve <br />balances is the City's financial strength. Should the <br />State enact aid cuts, reserve balances will provide the <br />City with a cushion. Voto felt that the planning process <br />was everything and that the City should stay informed. <br />Voto reviewed pages 7 and 8 which detailed revenue and <br />expenditures of the City's General and Special Revenue <br />Funds for the past three years. Page 9 provided an <br />account balance analysis of the City's combined financial <br />statements. Page 10 provided a history of the investment <br />account for the Franklin Fund, which was sold in 1994 <br />about $30,000 above book value. Page 11 provided tax <br />collection information and it was noted that the City's <br />tax collection rate averaged 100% over the past four <br />years. Information on TIF taxes receivable was provided <br />on page 12, and Voto recommended that the City continue <br />to monitor these collections. <br />Voto reviewed Special Assessments Receivable as shown on <br />page 13 of the report pointing out that the City's <br />special assessment collection rate averaged over 100% <br />over the past two years. Next reviewed was the General <br />Fund as shown on page 18. Voto pointed out that there <br />was a$90,000 net increase to the General Fund during <br />1993 which was used to fully £und designated reserves. <br />The policy of the City has been to have a zero <br />undesignated fund balance. Page 22 detailed the City's <br />minimum cash flow reserve requirement as well as <br />summarized reserve components. Voto stressed the <br />importance to the City in carrying reserve balances <br />indicating that these balances are the City's financial <br />integrity. Without reserve balances, the City Council <br />loses decision-making ability. <br />Morelan asked if reserve balances had any influence on <br />the City's bond rating. <br />Voto replied that Moody's Bond Rating Service would <br />question why the City was not carrying reserve balances <br />given the May and October tax collection system in the <br />State of Minnesota. Moody's wants to be assured that the <br />City is knowledgeable and understands its financial <br />position. <br />Voto reviewed Debt Service funds as shown on page 24. <br />Voto recommended that the City put together cash flow <br />projections for each and every one of its bond issues. <br />4 <br />