Minutes - 2002/10/28 - Laserfiche WebLink

Home Browse Search

Mounds View City Council October 28, 2002 Regular Meeting Page 12 F. Finance Department Quarterly Report Finance Director Hansen addressed Council and reviewed his quarterly financial report giving a report on the overall financial condition of the City as well as a report on the activities specific to the finance department. Finance Director Hansen indicated that revenues were roughly in line with the budget. He then said that franchise taxes were lower in 2002 due to more normal energy prices. Finance Director Hansen indicated that licenses and permits were tracking similar to 2001 and seem to be in line with the budget. He then said that building and related permits are off significantly from 2001 as there have been no major permits that have come in for 2002. Finance Director Hansen indicated that the building permits would be close to what was budgeted and he only increased the budget for 2003 slightly. Finance Director Hansen indicated that intergovernmental revenue is an area of concern as the City is expecting the second half of its state aid December 30, 2002 and, with the ongoing state budget difficulties, that money is at risk. Finance Director Hansen indicated that court fines were down somewhat although it is not a significant revenue item. He also indicated that interest revenue exceeded the budget in 2001 but in 2002 the interest income will be substantially lower, about what is budgeted. Finance Director Hansen indicated the police department budget is under budget the amount of the salaries from the vacant positions. Finance Director Hansen indicated he anticipates the total expenditures to be approximately $400,000 under budget for 2002. He then said that the City would not have the same cushion for 2003 and later years and also noted that the cushion would not be there if the state aid is not realized. Finance Director Hansen indicated the Community Center is struggling financially and said there would be an in depth discussion concerning that at the work session. Finance Director Hansen indicated the TIF districts were doing better than projected both in terms of budget and the projection by Ehlers. He then said that getting the DTED grant in 2002 will largely eliminate the need to transfer money to the EDA. Finance Director Hansen indicated the MSA construction fund is area of concern, as the City's engineer has not been regularly submitting requests for reimbursement from the state. He then indicated that Public Works Director Lee has looked into the matter and the Engineer has recently submitted a claim. He further indicated that claims should be submitted, at a minimum, Yearly.