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Regular Meeting of the City Council <br />Jan 13, 2003 <br />Page 12 <br /> <br />line to that, which will be close to four million of that seven million dollars plus <br />a number of other projects that are on the board to be constructed. <br /> <br />Mr. Anderson discussed the Tax and Revenue 2000 Services Construction <br />Fund. Of the six million dollars, the city has done several projects and gave an <br />example of the projects that were left to do, such as the Wade Park/Lamar <br />Avenue Drainage Project and the Stillhouse Road Improvement Project. <br /> <br />Mr. Anderson advised that the Certificate of Obligation 2002 is the money that <br />the city issued to build the Police and Court Facility. <br /> <br />Mr. Anderson pointed out that below the Cash and Investments item, he has <br />two months of operating and three months operating listed, and stressed the <br />need to have a minimum operating cash balance at all times through the year <br />of at least two months of operating budget and three months is preferable to <br />that. Mr. Anderson said there are certain times in the year where the cash <br />balance will exceed that because the cash flows are not equal through the year. <br />He said if he was doing this report at the end of January, the cash balance <br />would be substantially more because the bulk of the property tax revenue <br />comes in during January. Anytime the cash flow gets below the two months <br />operating figure there should be concern. <br /> <br />Mr. Anderson said the bond ordinance requirement of 1.263 millions dollars <br />has been shown and in the bond covenant, the city is required in the Water and <br />Sewer Fund to keep an equivalent of one-sixth of the operating and <br />maintenance current budget as a reserve. Mr. Anderson advised that where the <br />city should be, as a minimum, in the Water and Sewer Fund is this 1.2 million <br />dollars. He said that the city is in the hole in this fund and it needs to be <br />addressed. Mr. Anderson said he has given the City Council what the current <br />balances are and emphasized the fact that there are things such as accounts <br />receivable, accounts payable, and contractual obligations that could affect that <br />number, and if he was doing a full accrual set of financial statements, he would <br />account for those. If the City Council would look at the cash number, Mr. <br />Anderson said it should give a quick clue where the City is financially. <br /> <br /> <br />