Agenda - Council - 07/14/1992 - Laserfiche WebLink

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*" ~ 1~t53 I~.OWTHEN BOULEVARD N.W., RAMSEY, MINNESOTA 55303 (612) 427-1410 I I I I I I I I I I I I I I I I July 8, 1992 Mr. Kenneth W. Ma~ioy, CPA Principal Malloy, Kalalk~w-q~ki, Radosevich & Co., P.A. 410 Park National Bgnk Bldg. 5353 WayZata ~Blvfl.t MinneapoliS,(MN 55416 RE: Mmmg ~Onent'&etter Recommendauons for year ended December 31, 1991 Dear Mr. Malloy: To confirm my~ corn December 3:1~ I99 I~ Due to publidh~ letter review ~ In advance of ttfis re~iew I would like to comment on your management recommendations and/or observations: Condition ~Jf Financial Records The Citit's Fi~aance Department appreciates your favorable comments. The Finance Department would al~o lille to acknowledge that the improvements noted would not have been possible without the as4iS~anCeland cooperation of City staff. Deficit ~etained Earnings in Sewer and Water Fund On May }12, li992, an ordinance was introduced that provides for setting utility rates by resolution. This or~tnand, e was subsequently adopted and became effective June 29, 1992. At the Council mee '_t~ng ~f J~e 23, 1992, Council adopted Resolution ~92-06-160 which is a Resolution Amending the Ciiy~s M~nicipal Water and Sewer Rates, Charges and Fees and Establishing a Water Availability ~.harge. Effective with the 2nd quarter 1992 utility billings, the City has increased the water m~ge bi~ling minimum, increased the rates and changed the rate structure for sewer usage, and established a Water availability charge (WAC) in thc amount of $725.00 to be collected at time hook-up or iss~uance of a building permit in the municipal district. This is a long way of saving ue have taken affirmative action to bring our utility funds into compliance with the City's intent of funding s~ewerfind:rl~ water costs entirely through user charges. Additionf~l rat~ analysis will be done in 1992 - particularly as to infrastructure and replacement funding,: Designation Of General Fund Balance We, are iff agreement with your recommendation that we change our policy for designating fund balance for wq~rkmg capital. The current pohcy results m wide fluctuations which arc difficult to forecast ¢r explain. ~,crsation with Jerry Johnson, presentation of the City's Financial Report for the year ended :nd the audit results will be made at the July 14, 1992 regularly scheduled Council meeting. ;s this meeting will begin at 7 p.m. For your planning purposes, we expect the management ~ between 7:45 and 8:00 p.m. Staff will ipresent a recommendation for a change in this policy to the Cit3"s Budget Committee. and upon the~ fav0~ble recommendation will present to council for adoption effective with reporting for the year e;nded [December 31, 1992.