Res 1978-014 - Laserfiche WebLink

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I I I 37a Page Two Annual Audit January 27, 1978 $340,000. (less the $100,000 which is to be transferred to the :utility fund) Thus we have a reserve of $240,000. These are funds available to the City and =rently budgeted. It is extranely healthy to carry such a reserve. The size of the reserve is debatable. It should run sanewhere in the range of 5 percent of annual budget to as much as tv.u months operating budget. This could run fram $120,000 to $400,000. The purpose of the reserve is to fund operations between ectober 1 and January 31 when taxes cane in, to cover a shortfall in revenues if taxes of other anticipated funds do not cane in and to cover unexpected expenditures. (I will discuss one of these later.) I believe for the time beincr that we can get by with $120,000 and will make recarmendations to- you on handling this reserve. 4. The utility fund operated on a budget of $774,012, although expenses v.DUld have exceeded $800,000 without the curtailing of the extension program and austerity the last three m::mths. The Council authorhed a transfer of $100,000 from the general fund, although this transfer has not yet been made. 5. 'lheutility fund ended up $44,194 over budget this year. This occurred because of the unplanned expenditure for electricity. The original budget showed $43,000 for electricity while the revised budget reflected $96,216 - a difference of $53,216. The ,actual cost of electricity was $97,750. The revenues produced this year were $93,781 more than in 1975-76 and were $30,050 more than originally budgeted in 1976-77. The water and sewer charges generated $59,252 more than last year, due in part to the meter change out program. 6. The Utility Fund ended up with a cash balance of $108,325 which is offset by a restriction for debt retirement of $96,204, and payables of $66,250. We also had $107,526 of accounts receivable, most of which should be collectable. This v.DUld leave a balance of $53,397. This is prior to any transfer of funds frcrn the general fund to the Utility Fund. 7. The City had in its possession as of O:::tober 1, 1'977, the following arrounts in these funds: General Fund: $340,000 reserve not b..1dgeted (less $100,000 to te transferred to Utility Fund) Utility Fund: About $50,000, depending upon percent of collectables Utility Fund Debt Service: $96,204 Revenue Sharing Fund: $165,899 (this is entirely encumbered)