Agenda Packets - 2002/02/25 - Laserfiche WebLink

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Mounds View City Council February 11, 2002 Regular Meeting Page 3 Finance Director Hansen explained that intergovernmental revenues were less than what had been budgeted for and noted that the City had anticipated receiving a $68,000 police grant and did not receive it. Finance Director Hansen indicated that he believes that total revenues will exceed 100% of the revenue budget. Finance Director Hansen explained that the general funds total $3,911,000 and the budget was for $4,428,000 making the City under budget by $517,000. He then commented that the numbers could change slightly as the rest of the expenses come in but he feels the City will stay under budget on expenses. Finance Director Hansen explained that the Economic Development Fund was over budget by quite a bit and noted Council would need to discuss this area and he would be asking Council to retroactively revise the budget to reflect the level of the projects approved. He further commented that there would be a transfer out of the TIF fund to balance out the fund. Finance Director Hansen noted that Pages 26 through 28 cover the Community Center and said that the City has struggled with accounting for the businesses operating there and is in the process of improving the accounting for that area to identify what is or is not working. He then noted that for 2001 the Community Center had expenditures that exceeded revenues by $43,000. He further noted that the numbers are preliminary but fairly close. Finance Director Hansen indicated that interest income and depreciation have not been added to the water and sewer fund and those are significant numbers. He then noted that the City needs to prepare a utility rate study and do a comprehensive review of the utilities and decide whether to restructure costs or institute a rate increase to keep up with inflation. Finance Director Hansen indicated that the golf course numbers are hard to draw conclusions from because there are outstanding personnel issues that could be significant and noted that the depreciation had not been recorded. Council Member Stigney asked whether the golf course figures included the debt service. Finance Director Hansen indicated the debt service was included in the numbers for the golf course. Council Member Stigney asked where the money received from the federal gas tax refund are accounted for. Finance Director Hansen explained that the City puts those funds back into the account that the City buys gas out of. He then explained that the numbers reported show the cost of gas net of the federal gas tax refund.