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MINUTES <br />CITY COUNCIL <br />JULY 12, 1995 <br />few have adopted it. Gibbs also commented that the <br />City's general contingency designation may be a little <br />light at 15%, and he would recommend 25%. <br />Morelan recommended that the 3% Gambling Fund listed on <br />page 13 be renamed to Gambling Enforcement Fund. <br />Gibbs reported that the City's Debt Service Funds <br />outlined on page 14 are in good shape. Next the <br />Capital Project Funds were reviewed. Gibbs pointed out <br />that the negative balances shown for some of the funds <br />is temporary in nature and they will be eliminated with <br />the 1995 improvement bonds. Pages 16 through 34 <br />provide more detail on each of the General Project <br />Funds. <br />Next reviewed were the Enterprise Funds. Gibbs noted <br />that while it appears these funds are losing money, the <br />accounts include depreciation of assets. Gibbs also <br />reviewed the MCWS billings for the last 10 years, <br />noting the increases that the City has had to absorb in <br />treatment charges. <br />On page 39 of the report Gibbs noted that the City's <br />total retained earnings at the end of 1994 were <br />$1,277,850. Of that amount only 49% or $559,022 <br />represented cash and investments. Gibbs reviewed pages <br />40 and 41 of the report, recommending on page 41 that <br />the City adopt a formal policy with regard to <br />department head approval of vendor invoices. <br />Gibbs noted that Appendix A provides an update of State <br />Legislative actions over the last few years. Appendix <br />B provides a summary of statement of accounting <br />standards provided by the Governmental Accounting <br />standards Board. <br />LaValle commented on the excellent job that the auditor <br />has done for the City. <br />Fahey questioned the statement on page 4 in the report <br />which indicates that the City's tax base has decreased <br />by approximately $600,000 or So since 1989/90. <br />The City Administrator replied that this decrease is <br />the result of adjustments from tax petitions and class <br />rate percentages. For the past two or three years, the <br />State has been adjusting commercial/industrial tax <br />rates downward, and shifting that burden to residential <br />classes. <br />3 <br />