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Regular City Council Meeting <br />April 14, 2003 <br />Page 15 <br /> <br />A motion was made by Councilman Bell, seconded by Mayor Pro Tem <br />Manning to continue with the city's participation as a member of the Texas <br />Municipal League. The motion carried 7 ayes, 0 nays. <br /> <br />Mayor Pfiester announced that the next item was a discussion of the ISO Fire <br />Insurance Rating, and advised that Fire ChiefRonnie Grooms was ill and asked <br />that this item be tabled. A motion was made by Councilwoman Neeley, <br />seconded by Councilman Bell, to table this item. The motion carried 7 ayes, <br />0 nays. <br /> <br />Gene Anderson, Director of Finance, came forward to present the second <br />quarter financial report. He said that the first page was a listing of key <br />operating funds and the cash status of those operating funds. He reminded the <br />City Council that for a city this size, with a 36 million dollar budget, cash is <br />its lifeblood. It takes a cash balance on hand all of the time because the city's <br />cash flow is not equal throughout the year. There is a minimum that needs to <br />be on hand for prudent business operations. <br /> <br />Mr. Anderson went over the revenue section and pointed out that the General <br />Fund Balance has increased due to collection of property taxes and sales taxes, <br />reimbursement on LLEBG grants, the franchise settle-up with TXU Electric, <br />and timing differences in franchise payments. <br /> <br />He asked the City Council to look at the Water & Sewer Fund. He advised <br />that the cash investments were actually in a deficit situation, as he had talked <br />about at the last quarter, and as had been discussed at the last of the budget <br />workshops. This is the second area that the Council gave some consideration <br />to when they discussed the water and sewer rates, or reduction to the water and <br />sewer budget. Mr. Anderson advised that the city is required, under their bond <br />covenants for different bond issues, to have what amounts to two months or <br />the equivalent of two months O & M Budget. In other words, if you take the <br />total water and sewer budget and back out the debt and capital expenditures, <br />the remainder is what the bond ordinance states that the city will maintain as <br /> <br /> <br />