09-08-87 Finance Comm MinutesFinance with Water/Sower September 8, 1.987
Councilman Ilystul chaired the meeting with Councilman Ruiz attending.
Councilwoman Robinson arrived shortly after the meeting started.
1. Policy on Registered warrants
The committee reviewed the men;o from City Accountant Robinson regarding
possible options for dealing with cash shortages. Don Halver provider;
further explanation.
In the past we used warrants and the bank registered them when necessary and
charged 6% interest. We are now writing checks instead of warrants which is
a better system. However it makes it difficult to register the checks.
Therefore our options are to use a revolving variable rate loan from our
bank or use in-house loans from solvent funds at a rate established by the
council.
Councilman IMystul agreed the best option would be to loan in-house at 6.50
with the committee reviewing and adjusting the rate quarterly. The other
committee wenibers agreed.
2. Approve Pledged Securities
The committee reviewed the list of pledged securities and agreed to recommend
approval by the council.
3. Approve Tax increment Transfer Resolution
A resolution authorizing the City Clerk/Treasurer to transfer funds from the
to Tax Increment Fund Bidders Bond Account to the Decorative Light Maintenance
Fund and the Special Light #1 Debt Service Fund.
Clerk/Treasurer Halver explained the city has been awarded the bidder's bond
from the low bidder who did not honor his contract on providing the
Decorative Streetlights. The money will be used to pay off the city's Share
of the bond which helped pay for the lights and the reminder will be used in
the maintenance fund to buy replacement bulbs and other maintenance.
i
The committee agreed to recomend approval of the transfer resolution.
4. Approve revised Storm Sewer Assessment Resolution
Clerk Halver reported his original calculations for the assessments resulted
in an amount to be assessed of about $218,000 when the budget required
approximately $173,000. The water and Sewer Coua,ittee has recommended that
the assessments be reduced.
This committee concurred and will request approval of the amendment
resolution by the Council.
5. Review City Debt Analysis
Clerk Halver reported Bob Ehlers, Jr., of Kirchner [Moore & Company, several
months ago received committee permission to review our bonded debt and
determine if it would be profitable to refinance any of it.
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Finance with Plater/Sewer Septenber 8, 1987
•His first draft of the report has been presented to the Finance Committee
ti and Sewer and Plater Committee to see if they have any suggestions or
corrections prior to his issuing a final, report. The committee didn't have
any.
Councilwoman Hafferman (merwer of Water/Sewer Committee) arrived and Clerk
Halver explained Ehler's report. She didn't have anything to add to the
Finance Committee members' conclusions.
6. The cormittee reviewed claims.
7. Cash Reserves
Councilman P7ystul expressed his concern about the Budgets being balanced by
depleting the cash reserves. He reported the $200,000 of General Fund
reserves being used up this year will require a corresponding reduction in
next year's budget. He suggested the administration had better begin
preparing now for these future reductions. Since over 70% of the budget is
for salaries, some reduction in staffing should be planned on.
S. City Shop Building
Councilman Nystul reported the contract has been awarded for the City Shon
Building even though the Public Works committee had not yet reported back to
the council or moved for approval of the contract.
Halver reported it appears the state laws do not allow the council to give
committees power to act on bid awards.
It
Councilman Ruiz felt it take too long to act on bids if they have to be
brought back to council.
9. Street Construction cost analysis
Councilman Nystul suggested this would be a good time for the mayor to direct
a survey be prepared to analyze the cost of building East Montana Street.
This particular project is a good one for doing a review as most of the
direct costs were contracted out. We need to know what our true costs are
for street reconstruction.
Clerk Halver requested a survey be done to determine the costs of repairing
water lines that we bill the customer so vie can resolve the complaints about
these charges.
Councilwomen Hafferran and Robinson agreed the information should be readily
available and they felt it was worth looking into. (Street Reconstuction)
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