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1 <br />1 <br />1 <br />CITY COUNCIL MEETING JULY 25, 1994 <br />Council Member Kuether moved to approve the 1995 operating budget <br />as presented. Council Member Neal seconded the motion. Motion <br />carried unanimously. <br />CONSIDERATION OF THE 1993 ANNUAL AUDIT, RANDY SCHUMACHER AND MARY <br />VASKE <br />Mr. Schumacher noted that the annual audit was presented to the <br />City Council at a June meeting. The purpose of the presentation <br />this evening is to highlight some of the important trends that <br />were described in the audit. <br />Ms. Vaske noted that the General Fund Balance increased during <br />1993 by more than $300,000.00 to a total of $1,756,659.00 on <br />December 31, 1993. The Fund balance is still short of the <br />adopted reserve policy. The shortfalls relates to contingent <br />employee benefits. Property taxes are received in July and <br />December of each year. The reserve fund is used to fund City <br />operations during the periods between property tax collections. <br />The current special assessment collection rate increased from 81% <br />to 92% during 1993. The rate of collection is very good when <br />compared to other developing cities. <br />The Area and Unit Fund increased during 1993 by $700,000.00. The <br />collections are being received as budgeted. This Fund will pay <br />the 1991 Temporary Improvement Bonds which are due August 1, <br />1994. There will only be one General Obligation Bond outstanding <br />and due on February 1, 1995. Since bonded debt has decreased, <br />the City's legal debt margin has increased. Mr. Schumacher noted <br />that the City is requesting that Juran and Moody re-evaluate the <br />bond rating for Lino Lakes. <br />Investment interest increased by $236,000.00 during 1993. This <br />was caused by buying and selling zero coupon bonds at the right <br />time and place. Tax Increment Financing Funds are nearing <br />$1,000,000.00. A portion of these funds will be used for the <br />Lake Drive/Highway 49 Improvement. <br />The market value of the City increased $47,000,000.00 from 1992 <br />to 1993. <br />Mayor Reinert noted that this report indicates that the financial <br />condition of the City is very good and that the City is well <br />managed. He suggested that this also indicated that the "in- <br />fill" policy adopted by the City Council is paying off. <br />Council Member Bergeson noted that the assessment collection rate <br />would be better if certain developments had progressed as <br />PAGE 3 <br />29/ <br />