CC PACKET 05271997 - Laserfiche WebLink

Home Browse Search

Mayor and Members of the City Council City of St. Anthony, Minnesota • At year end the City transferred $387,217 from the General Fund; a summary of these operating transfers for 1996 is: $100,000 - Revenue stabilization reserve in lieu of transfers from liquor operations, $74,000 - Increase in budget/levy reserve for future years, $94,900 - Budgeted capital equipment acquisitions, and $118,317 - Future capital acquisitions and improvement projects. All other governmental funds of the City have positive fund balances at year-end. Included in special revenue funds is the $100,000 designated for revenue stabilization (anticipated shortfall of operating transfers from the Liquor Fund) . Fund balances of the debt service funds, combined with annual levy amounts, are sufficient to satisfy debt service requirements. The fund balance of the Revolving Improvement Fund decreased by $1 ,019,900 as a result of contributing $1 ,271 ,470 for costs asso- ciated with construction of the city hall portion of the Community Center facility. The transferring of the additional $150,000 to this fund, as presented above, would increase the fund balance to $_ 861 ,600. These funds are available to finance minor improvement projects, capital acquisitions, or temporary revenue shortages. The financial condition of the Liquor Fund has eroded over the past several years due to operating revenues not being sufficient to meet budgeted transfers. However, it is anticipated this trend will change as a result of Council action to close one of its on-sale liquor operations during 1996. It is anticipated, profitability • of liquor operations will improve significantly when the full impact of this deci- sion is realized for the entire year in 1997. The Utility Fund maintained a strong financial position. Current utility rates are adequate to generate sufficient revenues to meet current operating expenses. In addition, funds are being set aside annually to meet the City's share of costs of operating and maintaining the filtration plant (under the agreement with the State, the City's share of operating costs increases to 100% in 2001). The internal service fund established for the payment of accrued vacation and sever- ance has a small deficit fund balance of $1.3,500 at year-end due to a decision to limit the funding of this liability at $250,000. The funding of this liability is being limited due to the unlikelihood that this entire amount would be expended within one year for such payments. Segregation of Duties The City has a limited number of office personnel involved with certain accounting procedures. The limited number of personnel responsible for recording, reconciling and reporting of financial transactions and performance of related accounting pro- cedures prohibits optimum segregation of duties. With the hiring of additional fi- nance support personnel , internal control policies and procedures have been strengthen as the result of accounting duties being reassigned among existing personnel . In addition, this individual will provide needed backup support in the performance of accounting functions in case of prolonged absences or vacations of other employees. •