05/10/1993 Council Minutes - Laserfiche WebLink

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164 CITY COINCIL May 10, 1993 District Memorial Hospital. Mr. Studelburg reviewed the proposal presented to District Memorial. Basic service would consist of 208 hours Monday through Thursday and 225 Friday and Saturday and 204 on Sunday. Additional ambulance hours would be $65.00/hour. Summary of service would involve 2 paramedics with response time equal to what is received today. The goal is to respond 90% of the time in 10 min. or less in all communities serviced. Mayor Reinert thanked Mr. Studelburg for his presentation and added that the City is currently up in the air in regard to which way to go with the Ambulance Service. Mr. Studelburg indicated that if the City had any questions in the future they would be happy to come back. 1992 Annual Municipal Audit Report — Fred Espe - Mr. Espe reviewed the Management Report with the Council. In 1993 the State has budgeted a decrease in State Funding of $604,000. However, the City of Lino Lakes is budgeted for an increase of close to $60,000. Property taxes are currently 47% of revenues with State Aids being 22%. A graph of general and special revenue expenditures (91/92) was reviewed indicating that park and rec increased 3 1/2 % and public safety decreased to 35%. 1992 interest on investments was approximately $380,000 down from the 1991 amount because of lower interest rates. This area should be closely monitored because we are currently assessing at 7% but earning at only 4%. Currently property tax collection rate is 98% which is very good - average is 99% which indicates a healthy community. Increase in the general - fund balance for 1992 was $141,000 mainly due to expenditures under budget. Revenues came in nearly right on budget. The general fund balance is currently $1.4 Million. In 1991 the City adopted a reserve policy for the general fund balance - currently the fund balance is short of the goals of the City by $255,000. The area and unit fund balance increased $1.3 Million in 1992 - as of Dec. 31, the City was under budget by only 12 area and unit fees. This is very important for the repayment of temporary bonds issued. Enterprise funds - went from a deficit balance of $8,727 to a surplus of $51,000 due to a rate increase instituted in '91 and '92 and because of an increase in users. We recommend that the City monitor these rates to be able to meet the debt payments for the new bond issue. It is also recommended that the water and sewer operations be split to allow monitoring these rates independently. Council Member Bergeson stated that it appears within a few years we will reach the recommended reserve amount - what do we do then. Mr. Espe stated that would depend on the philosophy of the council. It will need to be re-evaluated at that time. Mr. Schumacher explained that if the State cuts reserves the City will need these funds to meet our obligations. We have done a good job over the years to maintain this reserve. Mr. Espe further explained that we use the reserves the first few months of the year to cover expenses 2 1 1 1