Minutes 12/13/1988 - Laserfiche WebLink

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TUESDAY, DECEMBER 13, 1988 At Councilman Cole's request (from Council's regular meeting held November 29, 1988), City Manager Brown's recent Five-Year Financial Forecast was placed on the agenda for the meeting covered herein .by these minutes, which subject matter Mr..Cole addressed in a prepared statement, as follows: I asked that this subject be placed back on the agenda because I feel that we should be making some decisions; and, in my opinion, we--as a Council--have not dealt with what I consider a serious problem. The five-year forecast has gained for us a reputation of operating in the "red"; nevertheless, I am confident that this Council will not let that happen. This five-year forecast' presents us with a picture which spells financial disaster, unless Council takes steps to avoid it. (I am not advocating a new approach to budgeting.) Simply, I am not willing to sit and do nothing for four months or so before acting. I hope that all of Council-members will feel the same way, as well as City Manager George Brown. Points for discussion: 1. Do we want the Enterprise funds to contribute their profits to the General Fund, thereby lowering the real estate tax? Water Fund ( ) Sewer Fund ( ) Electric Fund ( ) 2. Should we accept a projected General Fund budget which calls for expenditures to exceed revenues? I accept the fact that the "average surplus adjustment" of $1,394,139.00 is based on history; however, at this point in the current budget year, I think a closer look at projected revenues and expenditures should be taken so that we may establish a more accurate year-ending surplus. I do not accept the premise that the average surplus adjustment of $1,394,000 should be used in the 1989-90 projection. I think we should be (as) realistic as possible and let the result determine what action to take. The five-year financial forecast indicates that the major Enterprise funds will be $5,069,711 in debt. We have just referred to these funds as money-makers. Is this truly a meaningful forecast? (Incidentally, what is the purpose of the Electric Capital Reserve Fund or Electric Escrow account, and why does it shrink?)