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Mounds View City Council March 10, 2003 <br />Regular Meeting Page 12 <br /> <br />Mayor Linke clarified that the City budgeted for $300,000 worth of transfers that will not need to 1 <br />be made. 2 <br /> 3 <br />Finance Director Hansen indicated that was correct. 4 <br /> 5 <br />Mayor Linke asked for clarification on the transfers involving the vehicle equipment funds. 6 <br /> 7 <br />Finance Director Hansen explained that one fund acts as a savings account and the money is 8 <br />transferred to that savings account and then back the other way to pay for vehicle purchases. 9 <br /> 10 <br />Council Member Quick asked for clarification on the purchase of one squad car. 11 <br /> 12 <br />Finance Director Hansen indicated the City had budgeted for three vehicles, two marked and one 13 <br />unmarked squad and only one marked squad was purchased. 14 <br /> 15 <br />Council Member Quick asked why only one marked squad was purchased. 16 <br /> 17 <br />Finance Director Hansen indicated the decision was made well over a year ago but as he recalls 18 <br />the acting Chief at the time determined that, in the interest of saving the City money, the Police 19 <br />Department could make it a little longer with the one marked squad that was scheduled to be 20 <br />replaced. 21 <br /> 22 <br />MOTION/SECOND: Quick/Marty. To Waive the Reading and Approve Resolution 5967, a 23 <br />Resolution Approving Transfers Between Funds for the Year 2002. 24 <br /> 25 <br /> Ayes – 5 Nays – 0 Motion carried. 26 <br /> 27 <br />B. Resolution 5968 Approving Interfund Loans for the Year 2002 and Setting 28 <br />an Interest Rate on Loans for the Year 2003 29 <br /> 30 <br />Finance Director Hansen explained the interfund loans that needed to be made noting that these 31 <br />are loans with the assumption that the moneys will be paid back to the lending fund with interest. 32 <br /> 33 <br />Finance Director Hansen indicated the Resolution lists the amounts of the loans Staff is asking 34 <br />Council to approve for December 31, 2002. He then listed the amounts. 35 <br /> 36 <br />Finance Director Hansen indicated that the total amount of loans to the golf course is 37 <br />$1,017,887.00 as a result of an operating loss in 2002 due to difficult weather and the strike. 38 <br /> 39 <br />Council Member Quick asked if some of that loan happened because money was transferred 40 <br />without Council approval to operate the golf course. 41 <br /> 42 <br />Finance Director Hansen explained that there are bond covenants requiring the City to maintain a 43 <br />cash balance of $309,000. He then said that there was a year or two where the City lost site of 44