10-27-03 La Porte Development Corporation Minutes

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La Porte Development Corporation -10/27/03 - Page 2 The City's investments are in Tex Pool, with very few treasury bonds, investing all the money together, and allocating to each fund based on the cash position. 6. Review FY 2003-2004 Adopted Budget Assistant City Manager/Finance Director Cynthia Alexander provided an overview of the budget and long-range projections. In addition, she noted the Board will meet the second?third? Monday of each quarter. The 2003-2004 Budget was adopted September 8, 2003. Reviewing the Fund Summary page, the working capital is $2.3 million. Estimated revenues for 2003 are $963,000, a little more than what was received before sales taxes declined. However, this is a healthy revenue, less the expenditures and commitments of $743,000, with an estimated working capital of $2.5 million. Revenues expected for 2003-2004 are $929,000 from sales taxes and $33,000 interest income, total revenue being $963,000. The expenditures are Bay Area Boulevard Trunk Sewer, this was also on the 2002-2003 Budget. However, the Trunk Sewer project was not done, so it's been restated to the 2003-2004 Budget. Total expenditures are expected to be $1.7 million, with a working capital of$1.8 million. Ms. Alexander gave an overview of the Statement of Revenues, clarifying the actual taxes were $954,000 for 2001-02 with a budget of $900,000, knowing the taxes were going to drop down; the City budgets very conservatively. The next page is not really a part of the budget, the second section showing Long Range Projection potential debt issues. Even if the debt is the amount listed, it shows the days of working capital at the bottom of the page, the City's financial measuring stick. The first capital issues to look at are Series 2003, the City is attempting to do several different things, preferring to use bank qualified bonds, issuing before the end of the year, the City not being able to issue more than $10 million per year. The City is planning to issue the general obligation bonds next year for the jail project, which was voted on. Finance will be attempting to do different types of financing, non-traditional avenues to issue a bid. Ms. Alexander gave a recap fund summary on the Bay Area Boulevard project, the Canada Road Paving and Drainage project, and the Sens Road Improvements project. 7. Capital Project Status Report Public Works Director Steve Gillett provided City Council with an overview of the Bay Area Boulevard and Canada Road Projects. Bay Area Boulevard Project - Waiting on the right-of-way to be signed over by PPG. At that time, the City will move forward with the project. Canada Road - A project update handout was provided to the Board and an overview was provided by Mr. Gillett. Assistant City Manager/Finance Director Cynthia Alexander provided the Board with an overview of financing alternatives.