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Mounds View City Council April 12, 2004 <br />Regular Meeting Page 11 <br /> <br />Council Member Gunn commented that this brings the amount down to the limit of what the 1 <br />auditor will approve. 2 <br /> 3 <br />Finance Director Hansen indicated the Office of the State Auditor recommends a 30% to 50% of 4 <br />next year’s budget and this would leave just above 50%. 5 <br /> 6 <br />Council Member Marty commented that there is a transfer of $148,795 from TIF to the general 7 <br />fund and then transferring from the Community Fund to TIF District One. 8 <br /> 9 <br />Finance Director Hansen indicated that in working with the auditor it was determined that he 10 <br />made a mistake in the December tax settlement allocated to TIF District One and this is a 11 <br />correction for that having a ripple effect through four funds. 12 <br /> 13 <br />Council Member Quick asked why the City needs to have 50% of the annual budget in the 14 <br />general fund. 15 <br /> 16 <br />Finance Director Hansen indicated that 80% of the general fund revenues for the year come in 17 <br />the form of property tax settlement and payment of aids from Minnesota and that is received in 18 <br />July and December so the City needs a bank balance to work through July. 19 <br /> 20 <br />Council Member Quick asked what happens if the City does not have that money. 21 <br /> 22 <br />Finance Director Hansen indicated the City would have to utilize short-term borrowing and that 23 <br />is expensive and not looked upon very highly in the financial market. 24 <br /> 25 <br />Council Member Stigney asked if the City could get by with 30% in reserves. 26 <br /> 27 <br />Finance Director Hansen indicated that the May/June cycle would have a deficit if the City went 28 <br />with a 30% fund balance. 29 <br /> 30 <br /> Ayes – 5 Nays – 0 Motion carried. 31 <br /> 32 <br />E. Resolution 6216 Approving Inter-Fund Loans for the Year 2003 and Setting 33 <br />an Interest Rate on Inter-Fund Loans for the Year 2004. 34 <br /> 35 <br />Council Member Marty asked whether SEH ever straightened out the MSA allotment. 36 <br /> 37 <br />Finance Director Hansen indicated he had explained to Council Member Marty that he has never 38 <br />been satisfied that SEH straightened out the account with the state of Minnesota and has never 39 <br />received information from SEH as to whether anything was missed. He then said that an MSA 40 <br />account should not run a deficit and this one has for the last two years. 41 <br /> 42 <br />MOTION/SECOND: Marty/Gunn. To Direct Staff to Contact SEH For the Facts and Figures 43 <br />for An Analysis. 44 <br /> 45