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Item No. <br /> Staff Report No. 97- %96.3 C.. <br /> Meeting Date: February 3, 1997 <br /> Type of Business: WK <br /> WK: Work Session;PH:Public Hearing; <br /> CA: Consent Agenda;CB:Council Business <br /> City of Mounds View Staff Report <br /> To: Honorable Mayor & members of the City Council <br /> From: Bruce Kessel, Finance Director <br /> Item Title/Subject: Financial Issues <br /> Date of Report: January 30, 1997 <br /> NOTE: For purposes of this report, dollar amounts have been rounded. <br /> Cash and investments <br /> The City has $14,000,000 in cash and investments at year end(excluding funds in escrow <br /> to pay for defeased debt and employee deferred compensation). The City's main revenue <br /> sources are: <br /> • Property taxes of$1,600,000 which are received in two installment of$800,000 <br /> during the first part of July and December); <br /> • Tax increment taxes of$2,265,000 which are received at the same time as <br /> 111property taxes; <br /> • State Aids (LGA of$665,000 and HACA of$360,000)which are received in two <br /> equal installments of$513,000 in late July and December. <br /> • Utility revenues of$1,850,000 received quarterly in Feb, May, Aug, and Nov at <br /> an average of$460,000 per quarter; <br /> • Franchise fee of$235,000 received monthly at a average of$20,000 per month. <br /> On the expense side,the City has the following commitments: <br /> • Payroll costs of$110,000 every two weeks; <br /> • Bond costs of$1,900,000 with$1,300,000 due on February 1, and the majority of <br /> the balance due on August 1st; <br /> • Developer payments on TIF of$430,000 with$250,000 due on February 1 and <br /> $180,000 due on August 1st. <br /> • Other payments to vendors paid subsequent to regularly scheduled Council <br /> meetings. Payments vary due to the season from $50,000 to $300,000; <br /> occasionally, when a construction project is underway,the amounts can be higher. <br /> As noted above, the City has large obligations that are due at the beginning of the year <br /> (debt and TIF obligations) in addition to ongoing operating items, however, the City's <br /> major revenues are not received until mid-July and December; as such,the City needs to <br /> structure investment maturities to correspond with known obligations and maintain <br /> enough liquid cash to meet ongoing operating obligations. <br /> The State of Minnesota sets forth investment guidelines that all political subdivisions <br />