Agenda Packets - 1993/09/27 - Laserfiche WebLink

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After consulting with Finance Director Brager, it is advised that 3 months of expenses be available for cash flow purposes in order for the fund to be financially independent, i.e the City has enough cash to pay its bills (the City bills quarterly and pays monthly). Otherwise, other funds will lose interest earnings if a fund has cash deficits. In addition, our auditors have recommended a designation for contingency of 5-10% of an annual budget. Some other considerations that should be kept in mind include: 1) with each new light that is added, the cost of supplying electricity increases; 2) new additions in the City, such as Greenfield Ponds, golf course, business developments, etc..., will require additional lights and electricity; and 3) if the Highway 10 corridor is truly going to become a reality, lighting of some kind will be required. The rates in each of the scenarios are just examples of what could be done. A computer will be available at the worksession if there are other ideas. The rates can be easily plugged into the formula to determine how they might impact the fund balance. Per Resolution No. 4216, the current rates are in effect until December 31, 1993. If the rates were to be changed, they could become effective January 1, 1994.