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MINUTES <br />CITY COUNCIL <br />J[JLY 12, 1995 <br />Gibbs reported that his firm commends the City for <br />these accomplishments and encourages continuation of <br />such efforts in these areas. <br />Gibbs reviewed the Management Report and <br />recommendations in detail, noting that financial areas <br />which may be of particular interest are: <br />*The General Fund balance increased by $6,491 after a <br />cash transfer of $82,321 to the General Capital <br />Improvements Fund to finance future capital outlay <br />programs. <br />*The City continues to experience solid key financial <br />indicators such as property tax and special assessment <br />collection rates in excess of 95%. <br />*The City has improved internal accountinq expertise <br />and is preparing in-house an expanded budget document <br />that includes a debt service analysis and a capital <br />improvement program. <br />Gibbs reviewed the status of the City~s cash and <br />investments, as well as taxes receivable. Gibbs noted <br />that the City has a 96% collection rate in the years <br />1993 and 1994. The Council has held the line on <br />property tax levies for the past three years. <br />Assessment collection rates were at 97% in 1993 and 91% <br />in 1994. Tax forfeit assessments were at $101,015 as <br />of December 31, 1994. This amount represents unpaid <br />assessments on property which have gone ~~tax forfeit". <br />Next Gibbs reviewed the General Fund account, noting <br />that the account increased by $6,491 in 1994. Gibbs <br />reviewed the purposes and benefits of reserve balances. <br />Total reserves on hand at the end of 1994 are <br />$1,059,798. Gibbs reviewed the specific <br />designations/commitments for these reserves. He noted <br />that at the end of June in the last three years, the <br />General Fund balance was between $300,000 and $400,000 <br />which indicates the dramatic impact cash flow has on <br />this balance given the timing of property taxes and <br />State Aid receipts. This remaining balance must then <br />financi all of the other reserve designations. <br />Morelan asked if the City's policy of maintaining a <br />reserve balance equal to half the operating budget was <br />prudent. <br />Gibbs replied that his office has recommended this <br />policy to all the cities they work for, and all but a <br />2 <br />