Agenda - Council - 04/22/1997 - Laserfiche WebLink

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I I I I I I I I I I I I I I I I I I Of the Liabilities there was a depreciation of $265,000.00 and of this amount, $76,000.00 was written off as depreciation expense. There were $326,000 in total assets and was virtually unchanged in amount between the two years. Page three was the revenue statement showing revenue from grants and showed little change in revenue between 1995, and 1996. He explained that the majority of the expenses were salaries, taxes and benefits. Page four was a statement of cash flows, and the last pages of the audit were the notes explaining the audit. Some items of disclosure in the notes were the notes on the PERA account and the lease obligations. Jacobson questioned the placement of the moneys of the year-end balances. He explained how the Budget Committee wants it in a Reserve Fund, and not to be used. He questioned the amount being placed in the Reserve Fund and questioned if it was possible that it not be touched for a year if it was set aside. Muellerleile replied that it is put in the 4M fund as a beginning of the year asset until the Commission decides whether they determine a surplus or deficit in the following years operations. That is when the cash is either increased or decreased. Jacobson questioned if the year end amount appeared on our balance sheet. Ken stated that it does appear in the balance sheet in the following year. As far as operating purposes it does not show up as being available for current operations or current expenses. Nagel questioned the cash flows and the quarterly payments from Meredith Cable Co. He also questioned the policy and of the reserve fund and questioned if there is enough funding to get the Commission through the first three months of each year. MeullerleiIe stated the franchise and access grants are consistent upon quarters and that the expenses are also consistent. So by knowing the approximate amount that is needed to cover the expenses, the Commission has an idea of how much to place in the Reserve Fund and make available for cash operations. He stated that the reserve fund needs money to pay the fixed costs and to get the Commission through the upcoming quarters. Jacobson suggested taking the excess amount and putting it in a separate savings account. O'Connell explained that looking at other options has already been explored and that 4M still remains as the fund earning the highest percentage of interest.