CC PACKET 05282003 - Laserfiche WebLink

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83 Honorable Mayor and Members of the City Council City of St. Anthony, Minnesota Financial- Summary, continued General Fund, continued Council and management have realized the importance of providing a sufficient level of working capital by establishing and maintaining this reserve. The amount of this reserve is required because at certain times of the year, the cash Position of the General Fund may need to borrow funds internally from other City funds to sustain its operations until tax collections and state aids are received. To preserve this level of working capital reserve in the General Fund, council and management must continually monitor its financial position throughout the year to avoid adverse changes impacting its financial stability. Special Revenue Funds Each of the special revenue funds is maintained for a specific purpose. These funds remain financially sound at December 31, ,2002, although fund balances have declined due to utilization of funds and diminishing revenue sources to maintain current program levels. The fund balance of the General Reserve Fund of $250,000 was transferred to the Central Park improvement project during the year. Debt Service Funds Many of the debt service funds maintained relate to the City's street improvement program. Fund balances of these funds are restricted for debt service requirements and are not available for current expenditure purposes until the debt is retired. Fund balances of these funds are the result of prepayments of assessments levied in connection with improvement projects. Existing fund balances, combined with annual tax and assessment levy amounts, and are sufficient to satisfy 2003 debt service requirements. Debt service funds related to the Housing and Redevelopment Authority have existing fund balances and combined with current collection of tax increment revenues continuing, sufficient revenues will be generated from the tax increment districts to satisfy current debt service requirements related to the remaining two bond issues. Capital Project Funds Improvement costs incurred by the City amounted to $6,402,577. The most significant activity of the Capital Project Funds involved the Storm Water Improvement Fund with expenditures of $3, 413,400. Proceeds from grants and the issuance of bonds were used to finance these project costs. In addition, the Park Improvement Fund had expenditures of $1,668,300. Transfers from other funds in prior years have been the primary source for these expenditures. Other capital activity included equipment related acquisitions of $411, 686 during the year.