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City Council Regular Meeting Minutes June 14, 2005 Page 12 1 Mayor Faust said it is important to note that the City waited to know the actual numbers in 2 conjunction with Silver Lake Village construction. The 2004 budget the City didn't know what 3 the building permit revenue and costs would be, so it was purposely not put in the budget and left 4 to balance when the numbers were known. 6 Mr. Bonniwell said in the General Fund Reserves, $1,007,360 was designated for working 7 capital this year. The City receives their funds twice a year. The tax settlements come in July 8 and September. The City has to operate six months without 50% of the revenue, and this is why 9 the $1,173,965 is needed. He explained the self - insurance reserves and the unemployment and 10 contracts funds which will be explained in a future slide. The total fund balance in the General 11 Fund Reserves is $1,173,965. One of the goals is to get the fund balance to be 30% to 35% of 12 the current year's budget. We are maintaining our goal of getting to this percent, and 13 simultaneously are maintaining our A -1 bond rating. 14 15 The Police Contracts show revenue of $703,847. The expenditures are $636,106, which includes 16 $35,000 for police vehicles. 17 18 St. Anthony Village Wine and Spirits Marketplace store opened in June of 2004. Silver Lake 19 Village moved and opened in the same month of September 2004, and both produce total 20 operating profits of $77,385. 21 22 Mr. Bonniwell summarized Utility Operations. The fund balance increase is $708,414. Funding 23 from sewer and water connections are one -time payments. The City has combined those with the 24 remaining balance from its water and sewer revenue bonds issued in 2003 to enhance the utility 25 system in the future. Water filtration had a slight surplus. He explained that $50,000 was 26 transferred out of water filtration fund for 2004 purchases. 27 28 Under the investment summary, the total investment income was slightly over $320,000. He 29 said the City does not take too much risk in investments. 30 31 The City's total debt is $22,650,000 which includes road improvement bonds, tax abatement 32 bonds, storm sewer revenue bonds water sewer revenue bonds, public facility/lease revenue, 33 liquor revenue bonds, equipment certificates and tax increment bonds. 34 35 He pointed out there is a zero balance in the comp -time liability fund. The current funds on hand 36 are $188,637 in the Severance Fund. 37 38 The audit recommendations include a uniform allowance. There are new IRS regulations that 39 the uniform allowance be subject to federal and state taxes, and the process must now be paid as 40 part of the payroll process so it can be accounted for on the W -2s. He explained that the City has 41 a nonaccountable plan in that they do not require the Police and Fire departments to provide a 42 plan of the money they spend. The payments can be made by separate check. He suggested 43 creating a set of fixed asset records in a three ring binder. 44 45 Mr. Bonniwell concluded by noting he recommends the City should amend the General Fund 46 Operating Budget to $4,164,000 to include the building permits. He also recommended