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City Council Regular Meeting —12/05/05 <br />DRAFT Minutes - Page 5 <br />the City, with foreseeable and unforeseen future items. Mr. <br />Miller opined that, thus the stronger reserve levels, the better <br />prepared the City appears. <br />Councilmember Kough noted that the City had used reserves to <br />pay off substantial debt in the Parks and Recreation Department. <br />Mr. Miller clarified that this was an internal function, and that <br />the overall financial condition of the City remained unchanged. <br />Councilmember Ihlan clarified that the proposed 2006 budget <br />anticipated using approximately $� 38,000 in reserve funds; <br />questioning whether that small amount would impact the City's <br />bond rating. <br />Mr. Miller opined that it shouldn't have substantial impact on the <br />bond rating; however, noted that the bonding companies' <br />concerns aren't from year to year, but signals sent over a period <br />of time related to the City's fiscal management and reserve <br />levels. <br />Councilmember Ihlan opined that there would be larger impacts <br />on the City's overall bond rating and debt with the proposed <br />issuance of $40-50 million in Revenue Bonds for the Twin Lakes <br />Proj ect. <br />Councilmember Schroeder opined that caution should be used in <br />predicting doom if reserves are used with discretion. <br />Councilmember Schroeder spoke in support of an independent <br />consultant providing an audit opinion as to the appropriate level <br />of reserves for the City to maintain. Councilmember Schroeder <br />provided, as an example, use of the City's Parks and Recreation <br />Infrastructure Fund for recreational facilities (�.e., skating <br />center). <br />Mr. Miller noted that the Parks Infrastructure Replacement Fund <br />no longer existed; and had been abolished in 2004 to offset <br />accumulated deficits in the department. <br />Mayor Klausing opened the TNT for public comment at <br />approximately 6:35 p.m. <br />