1990-07-23 Public Hearing and Regular Meeting

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Discussion of General Fund Financial Condition Since all funds identified above are tied to the General Fund, I will expound on the impact of using these funds for the renovation. The City's policy is to maintain a working capital balance between 60 and 90 days of daily operations in the General Fund. Because the above mentioned revenue sources are not normal in the City's operation, they have increased the General Fund's Working Capital. The use of these funds for Capital Outlay will not drop the General Fund below the 90 days of Working Capital. Method of Gathering and Utilizing Funds The steps outlined below would remove the above discussed funds and place them into the General Fund Capital Improvement Fund (015) and earmark them for the renovation. If the renovation did not occur or the funds were not needed for the renovation, the earmarking could be removed and they would be available for other Capital Projects. City Council would need to: 1. Instruct the Director of Finance to deposit the proceeds from the sale of City property to International Cargo Network ($362,400) in the General Fund Capital Improvement Fund, Fund number 015. 2. Amend the Current Year Budget by $336,245, which represents prior years Street and Alley Closing Revenue as well as Proceeds from the Settlement of the Lawsuit. 3. Instruct the Director of Finance to transfer the funds just budgeted by the budget amendment to the General Fund Capital Improvement Fund, Fund number 015. 4. Instruct the Director of Finance to escrow the above mentioned funds, totaling $698,645, in the General Fund Capital Improvement Fund, for the renovation of the Broadway property. By following the above steps, we can accumulate the funds in the General Fund CIP Fund (015) and have them earmarked for the renovation. Interest Income from 1985 General Obligation Bond Sale In addition to the funds mentioned above, there is also $175,000 in accumulated Interest Income from the 1985 General Obligation Bonds that could be used for the project.