05-10-1999 - Laserfiche WebLink

Home Browse Search

Council Member Stigney asked where information on the increase in Personnel Service and Capital Outlay expenditures is delineated. Mr. Wischmann noted that detail is contained on Pages 31 and 32 which also identifies prior year figures. Mr. Wischmann noted the comments contained in the Management Report on the Tax Increment Financing (TIF) Debt Service Funds. He stated that due to the large transfer for the Community Center, the fund balance decreased by $3.1 million. As of December 1998, the fund balance was $2.2 million. The debt to be serviced at the end of 1998 is $6,675,000 payable through the year 2005. Capital Project Funds (Community Center) contains no fund balance since a transfer is made from the Debt Service Fund to cover those expenses. He noted the $704,000 deficit in the MSA fund which was covered by a transfer. Mr. Wischmann analyzed the Enterprise Funds which are designed to be self-sufficient. He presented the operating revenue and expenses for the Water Fund, Other Revenue (interest income), and Expenses. He commented that adequate revenues are being generated to cover the debt and bonds. Mr. Wischmann stated the Sewer Fund had consistent operations in 1998 with operating revenues up so it appears the rate structure is properly functioning. Mr. Wischmann reviewed the Golf Course Operating Revenues and significant expenses which included legal costs to address the litigation, noting if they were not included in 1998 there would have been a $109,000 operating income and, in 1997, a $86,000 operating income without legal expenses. He stated they expect a mce turnaround m this fund in 1999 since most of the legal expenses will be eliminated. Council Member Stigney asked if bond payments are included. Mr. Wischmann stated the numbers would not include the interest expense on the bonds so that would have to be subtracted to arrive at an income figure. He stated the operating income without the legal expenses should offset the debt. Mr. Wischmann reviewed the tax rates which have been very consistent and indicated it is a "middle-of--the-road" tax rate when compared to other cities. He stated he has information on tax data and tax capacity which is available for anyone interested. Council Member Stigney inquired regarding the TIF districts which are generating funds that do not go into the General Fund and asked if the tax capacity information includes those funds. Finance Director Kessel stated it excludes the TIF. Mr. Wischmann concluded his review of the Management Report by commenting on the lack of segregation of accounting duties. He explained that in an ideal world, the City would have more people doing various tasks to completely segregate all duties. But they realize the City's resources are limited and they do not want to hire more employees to delegate those tasks to. He • 6 D N I S C 5-10- 9 C'\A MI \M NUTE \C \ 9 .CC