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MEMORANDUM <br /> DATE: June 4, 1999 <br /> TO: Mike Mornson, City Manager <br /> FROM: Roger Larson, Finance Director <br /> ITEM: Y2K EMERGENCY GENERATOR/AUXILIARY LP GAS TANK <br /> Per your request, I researched internal funding options for the purchase of a generator <br /> ($80,000) and an auxiliary LP gas tank ($15,000). <br /> Upon review of the 1999 budget, current fund balances and our year-end designations, <br /> the majority of the City's fund balances are restricted or dedicated to specific projects. <br /> However, two potential funding options are available which could provide funding for <br /> these two expenditures. <br /> • Option #1 <br /> The General Reserve Fund has a current fund balance of$163,161. <br /> $100,000 of the balance is committed to Budget Levy Reserves. The <br /> remaining funds of$63,161 is available for use per Council designation. <br /> In addition, the Revolving Fund's 1998 interest earnings totaled $59,931 <br /> and are non-designated and could be used as a funding source. <br /> $ 63,161 General Reserve Fund <br /> 59,931 Revolving Fund Interest Earnings <br /> $123,092 Total Available Reserves <br /> Option #2 <br /> This option would include a combination of using reserves as stated in <br /> Option #1 and redefining a 1999 Sewer budget line item (701-48100-482 <br /> $22,500) for sewer line repairs/reconstruction. <br /> This concept holds merit because future use of the generator would be <br /> associated with the sewer lift stations. In addition, Mr. Hartman <br /> • indicated that redirection of this expenditure was workable and would not <br /> stress the water & sewer operating budget. <br />