CC PACKET 05281996 - Laserfiche WebLink

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Members of the City Council • City of St. Anthony, Minnesota Financial Condition Following is a brief review of significant activities of various funds. General Fund - The financial -condition of the General Fund improved considerably during 1995. The fund balance increased by approximately $100,000 as a result of revenues and other sources exceeding expenditures and other uses for-the year. A closer review of the General Fund reveals that budgeted revenues and transfers exceeded budgeted expenditures and transfers by $378,500 before accounting for non-budgetary transfers of $278,400. Included among non-budgetary transfers were transfers for the following purposes: $100,000 - Re-establishment of revenue stabilization reserve in lieu of Liquor Fund operating transfers. $124,000 - Creation of a budget/levy reserve for future years. $37,685. - Transfer for future improvement projects. $16,715 - Transfer to fully fund the liability for accrued compensated absences. The fund balance of the General Fund totaled $861 ,423 as of December 31 , 1995; of which $831 ,311 has been designated by Council action and $30, 112 reserved for prepaid expenditures. Of the total designated amount, $551 ,290 has been designated for working capital and $159,639 for a self-insurance reserve. The remaining • balance of the designated amount has been designated for other continuing programs, such as beautification, recycling and police DARE program and related activities. The reserve for working capital represents approximately 18.85% of budgeted expenditures for 1996, down slightly from 1994. This working capital reserve pro- vides needed working capital to finance current operations until tax settlements and state aids are received. This reserve also serves as a safeguard against poten- tial revenue shortages or unexpected expenditures. The self-insurance reserve decreased $15,306 as a result of claims paid during the year. Debt Service Funds - Debt service funds of the City, including those of the Housing and Redevelopment Authority, have positive fund balances as of December 31 , 1995. Collection of assessments and taxes levied have been sufficient to meet the debt service requirements of the improvement bond issues. Incremental property taxes collected from tax increment finance districts have been adequate to meet the debt service requirements related to those issues. During 1995, the Certificates of Indebtedness were fully retired and the remaining balance of $29,868 transferred to the Capital Equipment Fund. Capital Project Funds - All capital project funds are in good financial condition. The fund balance of the Revolving Fund at December 31 , 1995 was $1 ,761 ,469, of which $1 ,253,700 has been designated for costs associated with construction of-the city hall portion of the Community Center complex. As street improvement projects are completed, the remaining funds should be transferred to the debt service fund established for debt retirement. For the 1994 Street Improvement Fund, the transfer from the corresponding debt service fund should be made to eliminate the deficit • in this fund.