10-10-2012 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL OCTOBER 10, 2012 It was the consensus of the Council at this point in the meeting to lift the moratorium on auto repair -minor and major, leaving auto repair - salvage and auto sales uses subject to the moratorium. The City Attorney indicated that he would identify the specific code citations for the Council, and report those in a few minutes. GENERAL The City Administrator reviewed his report dated October 10, 2012 FUND recommending a transfer from the General Fund of $373,600 to the TRANSFER General Capital Improvement Fund based on the City's General Fund Cash Flow Policy. He noted that this policy establishes a target range for the General Fund of between 42.5% and 65% of budgeted expenditures. The reason to maintain this fund balance is that the City only receives tax revenue payments twice per year, and a balance needs to be maintained to cover operating expenses. He also noted that the City has an Interfund Loan in the General Fund that was subtracted from the fund balance in calculating the recommended transfer. Maintaining the Interfund Loan in the General Fund helps the City to realize higher interest earnings. The Administrator reported that this is the first General Fund transfer in recent years. Over the past few years given the volatility of Local Government Aid as well as declining building permit revenue and interest earnings, transfers were not recommended. Given Local Government Aids seem to have stabilized, staff feels comfortable in recommending the transfer. Blesener suggested the Administrator explain the purpose of the General Fund and the General Capital Improvement Fund. The Administrator noted that the General Fund supports the City's day -to -day expenses such as policy and fire protection, public works, etc. The General Capital Improvement Fund is used to support capital purchases such as vehicles, equipment, etc. Boss introduced the following resolution and moved its adoption: RESOLUTION NO. 2012 -10 -178 — APPROVING THE TRANSFER OF $373,660 FROM THE GENERAL FUND TO THE GENERAL CAPITAL IMPROVEMENT FUND AS RECOMMENDED BY CITY STAFF "Fhe foregoing resolution was duly seconded by Blesener. Ayes (4). Nays (0). Resolution declared adopted. 10