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Page 3 <br />January 12, 1984 <br />we were ons <br />sorb <br />se <br />ductionsaweeto may notehave�Jthat timeet cinithe futureuandbthus wleomayre- <br />loose our ability to make budget modifications. Addi.tionalncy lyufuture <br />reductions corwouldsevere. <br />allowAusetorabsorb thoseve for ereductions and <br />ticipated expenditures <br />future budgets and preserve the well being <br />give ample time to modify <br />of our residents. <br />Additionally City operations are so diverse that financial flexibility <br />unex <br />is required to handle unforseen events. Natural disasters, <br />capital outlay reeufinancinyaon arcurrenteliminarandltimelyfnancingbasisor vital im- <br />proveme <br />ts <br />is interst <br />A secondary benefit of adequate fund balance roffsetsthe costseOf in- <br />come. Such income would be available to help <br />current operations. <br />e of the <br />In order to maintain the financial <br />ialsnsfertofaan additionalnd c$100,000 <br />General Fund, special <br />be made to the fund balance of the General Fund from the <br />Projects Fund. This amount would be designated as a reserve for. <br />contingencies and would be used in the event of reductions of State <br />Aids, unforseen events and emergencies. <br />I am not recommending <br />an interest bearing loan be made to the Improve- <br />ment Bonds of 1981 Bond Fund. In their most recentregardingmanagementheet letter <br />our auditors recommended obtaining a legal op' <br />qualifying uses of residual MSA constructi n monie <br />monies lmust <br />the iAaal opinion from our City Attorney, those <br />sary that monies <br />uses would be a loan <br />be restricted, however, one of the p- <br />to the bond fund. As a consequence it is not neces <br />of the proposed Special Projects Fund be used for these bonds. A <br />u will be receiving along with this one will <br />separate memo that yo <br />explain the City Attorney's opinion in more detail. <br />RECOMMENDATION: projects Fund and <br />Adopt the proposed ordinance establishing a Special <br />direct staff to prepare a resolution authorizing the transfer of <br />$338,000 from the Special Projects Fund to the fund balance of the <br />General Fund. <br />DB/ds <br />Attachment <br />