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City Council Regular Meeting Minutes 04 <br /> July 13, 2004 <br /> Page 3 <br /> 1 Mr. Bonniwell continued in presenting a summary of significant activities of the fund categories, <br /> 2 which included: <br /> 3 <br /> 4 General Fund - The fund balance of the General Fund at December 31,2003 is <br /> 5 $1,142,047. For the year ended December 31, 2003,revenues and transfers exceeded <br /> 6 expenditures by$25,645 increasing its fund balance by this amount. The balance of the <br /> 7 General Fund represents approximately 30%of the operating budget for 2004. The fund <br /> 8 balance of the General Fund is designated or reserved for Working Capital, Insurance <br /> 9 (Self-insurance program), Public Safety Contract Reserves, Prepaid Insurance and Other <br /> 10 Matters. <br /> 11 <br /> 12 The major portion of the fund balance, $977,464, has been designated for working capital <br /> 13 purposes. This reserve provides financing of current operations until tax settlements and <br /> 14 state aids are received. This reserve also serves as a safeguard against potential revenue <br /> 15 shortages or unexpected expenditures,which may occur throughout the year. This reserve <br /> 16 for working capital represents approximately 27.3 percent of budgeted expenditures for <br /> 17 2004. The total fund balance of the General Fund represents approximately 30.2 percent <br /> 18 of the current year's budgeted expenditures. Each year this reserve has been increased in <br /> 19 an effort to reach the City's goal of maintaining a reserve balance of between 30 percent <br /> 20 and 35 percent. <br /> 21 <br /> 22 Revenues before transfers were $290,000 less than budgeted amounts (loss of state aids) <br /> 23 and expenditures were $192,700 less than budgeted and amounted to approximately 95 <br /> 24 percent of budgeted amounts. <br /> 25 <br /> 26 Special Revenue Funds - Each of the special revenue funds is maintained for a specific <br /> 27 purpose. These funds remain financially sound at December 31, 2003, although certain <br /> 28 balances have declined due to utilization of funds and diminishing revenue sources to <br /> 29 maintain current program levels. <br /> 30 <br /> 31 Debt Service Funds -Fund balances of these funds are restricted for debt service <br /> 32 requirements and are not available for current expenditure purposes until the debt is <br /> 33 retired. Many of the debt service funds maintained relate to the City's street improvement <br /> 34 program. Fund balances of these funds are the result of prepayments of assessments <br /> 35 levied in connection with improvement projects. Existing fund balances, combined with <br /> 36 annual tax and assessment levy amounts, are sufficient to satisfy 2004 debt service <br /> 37 requirements. Other debt service funds have positive fund balances and rely mainly on <br /> 38 general property tax levies for revenues to make debt service payments. Debt service <br /> 39 funds related to the Housing and Redevelopment Authority have existing fund balances <br /> 40 and combined with current collection of tax increment revenues continuing, sufficient <br /> 41 revenues will be generated from the tax increment districts to satisfy current debt service <br /> 42 requirements related to the remaining two bond issues. Lease payments from the City <br /> 43 will be the primary source of revenue for payment of debt service pertaining to the Public <br /> 44 Facilities Lease Revenue bonds. <br /> 45 <br />