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Honorable Mayor and Members of the City Council City of St. Anthony, Minnesota Financial Summary, continued General Fund The fund balance is designated or reserved for the following purposes: Working Capital and Revenue Stabilization $744,430 Reserve for Equipment Acquisitions 97,500 Reserve for Insurance (Self-insurance) 93,967 Reserve for Unemployment Benefits 28,000 Reserve for Prepaid Insurance 29,508 $993,405 The major portion, $744,430, has been designated for working capital purposes. This reserve provides financing of current operations until tax settlements and state aids are received. This reserve also serves as a safeguard against potential revenue shortages or unexpected expenditures which may occur throughout the year. This reserve for working capital represents approximately 23.87% of budgeted expenditures for 2000, compared to 15.73% for 1999. Council and management have realized the importance of providing a sufficient level of working capital by establishing and maintaining this reserve. To preserve this level of working capital reserve in the General Fund, Council and management must continually monitor its financial posi- tion throughout the year to avoid adverse changes impacting its financial stability. Special Revenue Funds Each of the special revenue funds are maintained for a specific purpose. These funds remain financially sound at December 31 , 1999, with sufficient fund balance reserves available to finance their respective activities in 2000. The General Reserve Fund has been committed/designated for revenue stabilization purposes (revenue shortages) in the General Fund.. The fund balance of this fund has been adjusted to $250,000 to reflect the amount committed (budgeted) for the General Fund in 2000, as previously noted. This was accomplished by transferring $100,000 from the Revolving Improvement Fund, previously designated as a levy reserve, to this fund with the amount in excess of the $250,000 transferred to the General Fund. Debt Service Funds Each of the debt service funds maintained relate to the street improvement program. Fund balances of these funds are restricted for debt service requirements and are are not available for current expenditure purposes until the debt is retired. Fund balances of these funds are the result of the collection (prepayments) of assessmens levied in connection with improvement projects. Existing fund balances, combined with annual tax and assessment levy amounts, are sufficient to satisfy 2000 debt service requirements. Debt service funds related to the Housing and Redevelopment Authority also have existing fund balances. Although debt related to the Kenzie project has been retired, the remaining fund balance has been pledged to debt issued for construction of the community center. It, is anticipated, based on current collection of tax increment revenues continuing, sufficient revenues will be generated from each of the tax increment districts to satisfy current debt service requirements for the remaining two outstanding bond issues.