HomeMy WebLinkAboutMinutes - 1/19/1994 - Finance and Personnel Committee MINUTES: FINANCE COI�'fITTEE MEETING
JANUARY 19, 1994
Members Present: Chairman Locke, Aldermen Bates and Bolger.
Others Present: Mayor Cuda, Alderman Baird, City Administrator Peterson,
� Principle Account Clerk Christensen.
The meeting was callad to order at 7:20 P.M. Chairman Locke indicated
the purpose of the meeting was to review the pro3ected City financial
position for the end of the current fiscal year in preparation for the
1994-95 Annual Budget discussions. He then asked Administrator Peterson
to make the presentation of the materials which had been prepared.
1. 8eview Statements of Becei�ts/Disbursements for the Month Sndin�
December 31, 1993
Peterson explained this statement was a compilation of the revenues and
expenditures for the first eight months of the 1993-94 fiscal year. He
reviewed the various fund types established by the City, and answered
questions from those in attendance.
2. Pro_iected Year-Bnd Bevenues and Bs�enditures in General F�md
Peterson reviewed his $4,959,831.00 revenue forecast in the General Fund
for the end of the current fiscal year. Pro3ected expenditures for the
same time period are estimated at $4,842,190.00. A year-end General Fund
balance of approximately $410,000.00 (previous year fund balance was
$302,000.00) is pro3ected. Peterson explained the year-end fund balance
represents approximately a 4.4 week fund balance of average expenditures
in the General Fund. He recommends that the City work toward achieving a
2 month balance for cash flow and emergency purposes. The Committee felt
� Peterson should prepare a request for proposals to purchase new financial
hardware and software. Considerable discussion took place about City
Attorney fees.
3. Denartmental S�mary of Current Year Bstimated B.xnenditures and
Five-Year Historical Actual �enditures
Peterson reviewed the departmental expenditures that make up the General
Fund, including Administration, Police, Public Works Administration,
Building and Grounds, Building and Zoning, and Parks. Current year
estimated expenditures are $4,852,190.00. This is an increase from the
1988-89 General Fund expenditures of $3,021,833.00. Those present had a
number of questions as to why the expenditures have increases so
dramatically over the five-year period. Peterson explained a large
portion of the increase is a result of debt service for the new municipal
building and its furnishings, as well as new programs instituted by the
City (Dial-A-Ride, NISRA, landscape waste), and staff increases to meet
the needs of a growing community. Peterson reported that the year-ending
General Fund balances, beginning with the 1988-89 year and ending with
the pro3ected current year are as follows:
1989 1990 1991 1992 1993 1994
$830,000, $741,000, $482,000, $242,000, $302,000, $410,000.
5. Permit and License Fees and Other Citv CharAes and Taxes
�-' Peterson briefly reviewed a summary of all the City permit and license
fees, as well as other charges and taxes that comprise City revenues.
Discussion took place on the potential for increasing and decreasing some
of these fees. Items discussed included: license fee for beer trucks;
increasing building permit fees; increasing vehicle license fees;
providing a decrease in vehicle license fees for seniors, and the
softball league fees.
Finance Committee Meeting
Minutes
January 27, 1994
� Pa�e 2
The Administrator then reviewed his estimates for the General Fund
revenues for 1994-95, totalling $5,170,800.00. He explained that the
property tax, the sales tax, and income tax comprise 86% of General Fund
revenues and that they are key to the City's budget. The Administrator
stated he pro�ected a 5% increase in sales tax revenue, using the
existing base and an additional $100,000 to be generated from the new
Target complex, which is scheduled to open in March, 1994. The Committee
questioned how it might be able to fund some of the staff positions that
had been recommended. Chairman Locke asked the Administrator to prepare
a written summary of these requested positions, their dollar impacts on
the budget, and how these additional positions might be funded.
There being no further business to come before the Committee, the meeting
was ad3ourned at 9:33 P.M.
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e ry Locke, airman
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