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Regular Meeting of the City Council <br />Jan 13, 2003 <br />Page 11 <br /> <br />Gene Anderson, Director of Finance, came forward telling the City Council that <br />what he has done with the three page report that he has prepared is to give <br />them highlights and to point out key things regarding the revenue and <br />expenditures of the city. <br /> <br />Mr. Anderson directed the council's attention to the first page entitled ~Key <br />Operating Funds". He said he pulled the cash and investments line item out <br />because in an organization as large as the City of Paris, where you have a 34 <br />or 35 million dollar budget, cash flow is an important item as it is the life-blood <br />of the organization. He pointed out the cash and investments for the General <br />Fund. He provided the balance as of December 31, 2002, of 4.1 million and <br />below that figure he provided comparable information for the prior year. <br /> <br />Mr. Anderson also gave the City Council the same type information for the <br />Water and Sewer Fund, showing a negative of 1.5 million dollars. Mr. <br />Anderson said this situation is the same thing that has been talked about in <br />detail in the last two budget workshops. He said the 9.5 million dollar Water <br />and Sewer Bond Issue that was done is the primary reason there is a problem <br />in the Water and Sewer Fund. Mr. Anderson told the City Council that to fund <br />the 9.5 million dollars, which the city really did not have a choice in doing, <br />puts an additional five of six hundred thousand dollars a year strain on that <br />fund. He said those bonds were issued in the year 2000 and there has not been <br />any sort of rate adjustment since January of 2000. The rates have never been <br />adjusted to compensate for that last bond issue, and as a result, that is the <br />primary reason that the City has the problem in that fund. Mr. Anderson <br />advised that if they would look back over the past three years and look at the <br />non-capital budget, the operating and maintenance part of the budget, it has <br />been basically flat. Mr. Anderson felt this is something that will be addressed <br />in the near future. <br /> <br />He said the next item is the Wastewater and Sewer System 2000 Series <br />Construction Fund (9.5 million). Mr. Anderson said there is 7.2 million <br />dollars left and there was a resolution passed tonight authorizing use of some <br />of that money with building of the water tower on Bonham Street and the water <br /> <br /> <br />