05/11/1998 Council Minutes - Laserfiche WebLink

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• COUNCIL MINUTES MAY 11, 1998 approximate term of the district with 10% interest charged per year. These annual transfers for assessments have been previously approved for all other T.I.F. projects with the same assessment agreement. The total assessment owing is $107,299. Ms. Vaske recommended that Resolution No. 98 - 67 be adopted. Mayor Sullivan asked if the City's carrying costs would be recovered. Ms. Vaske indicated that they would. Council Member Dahl moved to adopt Resolution No. 98 - 67, as presented. Council Member Neal seconded the motion. Motion carried unanimously. Resolution No. 98 - 67 can be found at the end of these minutes. Consideration of Resolution No. 98 - 68, Designating General Fund Balance - Ms. Vaske stated that Resolution No. 91 - 03 set standards for a reserve policy for the General Fund. The policy requires that 1/2 of the cash flow from property taxes and state aids for the ensuing year be required 15% general contingency reserve for the ensuing budget, prepaid items (i.e. insurance, seminars, etc.), and unpaid employee benefits (vacation, sick leave severance). In 1997, the total reserves surpassed the requirements by $307,000. The City Council discussed the designation of these dollars at the last work session and determined the preliminary percentages: Finance hardware/software 30% Parks playground equipment 50% Road reconstruction 10% Contingency fund 10% Ms. Vaske stated that she redefined the numbers to decrease the finance percentage and added the difference to a personal contingency, which could be used for union contract settlements, severance, etc., that was not included in the 1998 budget. Ms. Vaske recommended that Resolution No. 98 - 68 be adopted. Mayor Sullivan explained that the City had $125,000 additional revenue from the Public Works fund due to a quiet winter. Mayor Sullivan noted that the funds spent on the Finance Department hardware/software would have been a requirement in the future. The funds spent on the Parks Department playground equipment were very much needed. Road reconstruction was a big issue for the City and it would be helpful to have some funds for road improvement without requiring a citizen's vote. Council Member Bergeson asked if the $307,000 figure was final. Ms. Vaske indicated it was final as of Thursday, May 7, 1998. III Council Member Dahl moved to adopt Resolution No. 98 - 68, as presented. Council Member Neal seconded the motion. Motion carried unanimously.