09-28-94 Council Workshop Minutes

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MINUTES CITY COUNCIL SEPTEMBER 28, 1994 fees. There is the potential to add an additional $2,000 to $4,000 in revenues in this area. The Administrator next reviewed intergovernmental revenues, pointing out that revenues received from the State are projected at $397,563. Included in that amount is $28,125 from State Revenue Other. This is a new category and reflects a portion of State Aid maintenance dollars that can be applied to the General Fund. Previously, the City has applied these dollars to past MSA bond interest. We have now reimbursed ourselves in this regard. Allocating these funds to General Fund revenues gives the City more flexibility in their use and serve to offset road maintenance costs. County revenues are projected at $18,595 which is for our recycling grant. Pedersen asked how stable the LGA and HACA figures are. The Administrator replied that in the past the State has reduced local government aids in the middle of a budget year. Recently the State's situation has been fairly stable so hopefully state aid dollars will remain as projected. The Administrator reported that the City has set up a reserve of one year's LGA in order to protect itself from a reduction in this category. Morelan asked if MSA dollars could be used strictly for maintenance of MSA roads. The Administrator replied that 25% of the City's MSA allotment is unrestricted. Including that revenue in the General Fund gives the City more flexibility, and is consistent with the plan that the City Auditor has developed for the City. Morelan asked about the $5,500 revenue under Special Assessments for 1994. The City Administrator reported that this was a year- end audit adjustment applied to offset expenses for certification of bad debt for collection on taxes. There is no offsetting expense, so we should not project a revenue. Morelan felt the City has been underestimating building permit revenues, and realistically could increase that 2