01-12-1983 Council Agenda - Laserfiche WebLink

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Mr. Joseph C. Chlebeck Page 2 The City has one parcel of un- utilized property and could possibly obtain two or more parcels through the tax forfeiture process. This source of finance could be beneficial, if the owner of the desired parcel (to be used for the Senior Citizen Project) would consider a trade and if the parcel to be traded can be acquired at the right cost. However, cash land sales are limited in todays economic environment. The possibility of generating the required $140,000 by mid -1983 must be considered remote until the City has acquired adequate title and definite sale and /or trade committments. I recommend that the City look into these matters further to obtain a better definition of its position and the positions of other parties. In the absence of new money, existing monies could possibly be looked into. 1. GENERAL FUND - The fund balance of the General Fund was $106,000 at December 31, 1981 and budgeted to be $174,000 at December 31, 1982. However, the "minimum required cash -flow reserve" amount was calcu- lated at $272,000 for 1982. Accordingly, this balance should not be construed to be available for other purposes. 2. SPECIAL REVENUE FUNDS - The City has approximately $100,000 in its Park Improvements Special Revenue Fund. This money represents accumu- lated Park Permits is restricted for park land acquisition by City Council action. In the absence of a City Council policy change to this restriction and a concerning legal opinion, these monies are not available for the Senior Citizen Project. 3. DEBT SERVICE FUNDS - Debt service monies are committed exclusively for the payment of bonded debt and, accordingly, are not available for the Senior Citizen Project. 4. CAPITAL PROJECT FUNDS - Capital project monies are committed for spe- cified project (MSA) and, accordingly, are not available for the Senior Citizen Project. 5. SPECIAL ASSESSMENT FUNDS - Special Assessment monies are committed exclusively for State Statute, Chapter 429 improvements and debt retirement and, accordingly, are not available for the Senior Citizen Project. 6. UTILITY FUNDS - The Retained Earnings of the Water Utility is minimal. The Retained Earnings of the Sewer Utility was approximately $275,000 at December 31, 1981. This balance would possibly be available, sub- ject to Revenue Bond restrictions, City policy, and, a concurring legal opinion. Should the City wish to consider this potential option, the above restrictions should be looked into.