Minutes 04/24/1990 - Laserfiche WebLink

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184 April 24,' 1990 with estimated revenues being completely in balance with the recommended appropriations. It would not be fiscally responsible to use any of the remaining fund balance to support expenditures i5 the 1990-91 operating budget. The City needs a substantial fusd balance for cash' flow purposes, as well as for contingencies. It is important to note that our need. to borrow through revenue anticipation notes in 1990-91 will be due to-the reduction in the fund balance which has taken place o~er the past five years. -- . The ~hart b~low illustrates the City's typical a:nnuat cash flow. CASH FLOW 0 FUTURE BOND ISSUE Bonds totaling $31!~8~99'9~aye been authorized, but are unissued at this time. This amount is expected to be increased with the adoption of the next CIP later this fall. Additionally, public utility bonds will need to be authorized in the near future for constructioh of a new water transmission line as well as other public utility imProvements~ We will plan to recommend that a referendum be included in the November, 1990, election for these public utility bonds. We anticipate recommending a bond issue totaling approximately $40 million to be sold in late 1990. This proposed budget includes appropriations for one scheduled interest payment on the anticipated new bond issue, to be paid during the budgeted fiscal year. It is also expected that some bond anticipation notes, which are presently authorized, will be sold in the meantim~ and retired with the proceeds of the next bond issue. OTBER ITEMS ~ Several other items which warrant brief mention are as follows: o Although no increase in the real estate tax rat~'was recommended this year, the Citywide reassessment of real estate averaged 4.21% according to the City Assessor. o Two years ago a monthly $0.40 utility charge on telephone bills was enacted to establish the Enhanced 911 (E-911) emergency