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Mounds View City Council June 12, 2000
<br />Regular Meeting Page 13
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<br />approximately 3 million dollars. He indicated the graph he has provided reflects the necessity for
<br />the Fund balance to carry the City through the operating cycle of the General Fund.
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<br />Mr. Wischman stated the Debt Service funds are very tightly regulated in terms of tax levies, and
<br />the Debt Service Fund balance decreased approximately $447,000, primarily due to the transfer
<br />in for the Community Center Project. He indicated with regard to the Capital Projects Funds,
<br />given the various expenditures that are made, the Community Center is basically zeroed out at
<br />the end of every year. He explained that operating transfers are made from the Tax Increment
<br />funds to finance those projects, and in 1999, the Capital Projects expenditures were
<br />approximately $1.5 million dollars, between the Community Center and the State Aid Fund. He
<br />indicated at the end of 1999, the State Aid Fund had a balance of approximately $192,000.
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<br />Mr. Wischman stated the Enterprise Funds are the Water, Sewer, and Golf Course Funds. He
<br />indicated 1999 was a fairly unique year in terms of the operating revenues and expenditures of
<br />the Water Fund, in that there were some expenses for contractual services that increased the
<br />operating expenses significantly due to the Year 2000, and as a result, there was a net operating
<br />loss, however, the retained earnings in that fund, at approximately $8.2 million dollars, was still
<br />very adequate. He explained that during the previous three years, the revenues in the Water Fund
<br />exceeded the operating expenses, and he would expect this to be the case in 2000 as well.
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<br />Mr. Wischman advised that the Sewer Fund maintained fairly consistent operating results. He
<br />indicated operating revenues were $1.2 million dollars, and the Metropolitan Council billings
<br />were $671,000, which decreased from the previous billing of $730,000. He stated other
<br />operating expenses increased accordingly, however, the net income bottom line is that the Fund
<br />gained $20,230, and therefore, the rates were exactly where they should be in the Sewer Fund, in
<br />order to account for depreciation and considerations of this nature. He advised that these were
<br />very consistent operations, which is very good from a budgeting standpoint in that it allows the
<br />City to predict were the financial obligations would be for that particular fund in the future. He
<br />stated this Fund was also in very good condition, with approximately $2.5 million dollars in fund
<br />equity retained earnings.
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<br />Mr. Wischman stated in 1999, the operating revenues of the Golf Course Fund were almost
<br />identical, and benefited from the fact that there were decreased legal fees, which resulted in
<br />improved operations. He indicated there was however, a decrease in the retained earnings of
<br />approximately $49,000, versus a loss of $136,000. He advised that in 2000, the Golf Course
<br />Fund should show consistent operating results due to the reduced legal fees, however, there
<br />would still be some areas that would continue to require resources for corrective action on the
<br />Golf Course. He pointed out that the City was in the process of finalizing some advertising
<br />projects for the Golf Course, and they would examine this in 2000, and proceed from that point.
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<br />Mr. Wischman provided the Council with a table, which depicted the tax rate percentages. He
<br />advised that the tax rates were very consistent. He indicated in 1993, the tax rates were at 21
<br />percent, however, from 1994 to 1999, they were in the range of 25 to 26 percent. He explained
<br />that this was simply a formula based analysis of the amount of taxation on the citizens of
<br />Mounds View, and the fact that it is very consistent represents that levies remain consistent, and
<br />therefore, the taxes the citizens pay also remain very consistent.
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