CC PACKET 07131999 - Laserfiche WebLink

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MEMORANDUM DATE: June 30, 1999 TO: Mike Mornson, City Manager FROM: Roger Larson, Finance Director ITEM: Y2K EMERGENCY GENERATOR/AUXILIARY GAS TANK Upon review of the 1999 budget, current fund balances and our year-end designations, the majority of the City's fund balances are.dedicated for specific capital equipment purchases, park improvements and specific projects. However, funding is available for this expenditure by designating reserves that are available in the Revolving Fund ($50,931) and redefining a 1999 Sewer budget line item totaling $22,500 (701-48100-482) for sewer line repairs/reconstruction. . Since future use of the generator would be associated with the sewer lift stations its . good accounting practice to expense a portion of the expense to the Sewer Department. The Public Works Director has indicated that redirection of this expenditure is workable and would not put undue stress on the water & sewer operating budget. The remaining funds can be designated from last years Revolving Funds interest earnings that remain non-designated. Council did inquire if the amount of$387,880 listed in the 1998 financial statement is available for use. However, those funds were designated for capital equipment acquisitions during the auditing process for such things as the final payment of the new fire truck, Y2K upgrades, mill/overlay improvements to alleys, city hall microphone system and police contract reserves. Recommendation: Council approve funding for the new generator and propane rental tank as follows: $22,500 Redefine 1999 Sewer budget $50,900 Revolving Fund (interest earnings) $73,400