CC PACKET 06081993 - Laserfiche WebLink

Home Browse Search

Members of the City Council • City of St. Anthony, Minnesota Accrued Compensated Absences For the year ended December 31 , 1992, the City Council elected to fully fund the accrued compensated absences liability in the Severance Fund. Funds totaling $172,548 have been transferred to this fund to establish funding for this liability. The City's personnel ordinance contains provisions for the maximum amount of vaca- tion and other types of compensated amounts which can be carried over from one year to the next. When reviewing employees eligible for these benefits it was noted that several employees were at or near the maximum amounts allowed to be carried over by the personnel ordinance. These individauls should be encouraged to the take the required time off to insure compliance with existing requirements of the ordinance. Such compliance would avoid the potential of individuals losing a portion of their accrued benefit. In addition, it was noted that the personnel ordinance applicable to nonunionized employees was not properly written during recodification. Based upon discussion with the City Manager, it was the City's intention to reward or make it easier for employees to qualify for severance benefits."As a result of this discussion, the personnel ordinance will be corrected to reflect the City's intention. Note the accrued liability recorded in the financial statements is based upon the ordinance being amended to correspond with the City's intentions. • Investments Through financial institutions utilized by the City, excess funds of the City have been invested in a variety of governmental securities, each with its own unique characteristics. , A subsidiary ledger could be maintained for these investments to insure each investment is properly recorded and acccounted for. This ledger would insure that investment cost, accrued interest, premium paid or discount are properly recorded in the financial statements. This ledger would indicate return of principal and interest received applicable to an individual security. This would faciliate the recording of gains or losses from sale of investments not held until maturity, amortization of premium or discount related to each investment, and accrued interest including original issue discount. Also, this schedule could assist management in .determining the appropriate timing for sale of investments. Storm Sewer Charges During the year, the City instituted a charge to users for future storm sewer improvements within the City. These charges are being billed and collected via the utility billing system. Currently the revenues generated by this charge are being accounted for in the Utility Fund. A separate fund should be established to properly account for revenues generated and subsequent expenditures. Two reasons for creating a separate fund are; 1) provide accountability of the funds,- avoiding the comingling of these funds with utility revenues, and 2) these charges are not related to the operations of the City's utility system. •