CC PACKET 06121995 - Laserfiche WebLink

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Members of the City Council City of St. Anthony, Minnesota Financial Condition, continued The fund balance of the General Fund totaled $761 ,344 as of December 31 , 1994; of which $481 ,661 has been designated for working capital and $174,945 for a self- insurance reserve. The balance of the fund balance has been designated for other continuing programs. The reserve for working capital represents approximately 20% of budgeted expenditures for 1995. This working capital reserve provides needed working capital to finance current operations until tax settlements and state aids are received. This reserve also serves as a safeguard against potential revenue shortages or unexpected expenditures. Parkview Building Fund - This was the first year since the City took over operations of the building, that the Community Center operated• at a break-even -point. Rental income coupled with the City's contribution exceeded expenditures associated with operations of the building. This excess was used to defray a significant portion of the costs of roof repairs. Certificates of Indebtedness Debt Service Fund - During 1995, the last debt service payment will be made on these certificates. It is anticipated that this fund will have an excess fund balance of between $25,000 and $30,000. These funds should be transferred to the Capital Equipment Fund to provide additional revenues to fund anticipated/budgeted capital out lay for 1995. Revolving Fund - Portions of the fund balance have been designated for the follow- ing purposes: $1 , 174,800 for city hall/community center and $209,650 for capital outlay expenditure. Street Improvement Funds - When construction projects are completed, the construc- tion funds should be closed. Excess funds remaining in a fund, like the 1993 Street Improvement Fund, should be transferred to the debt service fund established for retirement of the bonded indebtedness. Conversely, any deficit in the street improvement funds should be eliminated with a transfer from the debt service fund established for its debt retirement. Liquor Fund - Liquor operations had a net income of $66,000 for the year ended De- cember 31 , 1994, an improvement from 1993. However, it should be noted that income from operations was $10,500, with the difference between net income and operating income attributed to commissions and rental income. Efforts to increase the profit- ability from operations alone should be emphasized to avoid relying on nonoperating revenues to be profitable. Combined gross profit on sales increased to-31 .5% in 1994 compared to 30.7% in 1993. Operating expenses decreased $14,000 despite a re- duction in salaries of $28,700. Controlling and maintaining costs of operations is a key element to increasing profitability and need to be monitored closely. Utility Fund - Investment income and grant reimbursements related to operations of the filtration plant allowed the Utility Fund to have net income for the year ended December 31 , 1994. However, the sewer portion of the operations had a deficit for the year. Water operations continued to subsidize a portion of sewer operating costs. It is difficult to determine/budget the amount of revenues needed to have the sewer operation self-sufficient since the largest cost related to its operations is determined by an outside agency.