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12-15-1982 - Workshop ~ J. - (.,) \.J CITY OF EDGEWATER CITY COUNCIL WORKSHOP December 15, 1982 - Minutes Mayor McKillop called the Workshop to order at 1:30 p.m. ln the Community Center. ROLL CALL: Mayor Richard McKillop Counci~man David Ledbetter Councilwoman Gigi Bennington Councilman Neil Asting Councilman Jack Spencer Present Present Present Present Present City Clerk Nancy Blazi City Attorney Alvarez Police Chief Earl Baugh Finance Director Kinsey Present Present Present Present The City Clerk asked to be excused from the meeting. Mrs. Kinsey took over in her place. Mayor McKillop announced that the firm of May, Zima and Company, Certified Public Accountants, will be represented at this workshop. Councilman Asting passed out a report prepared in conjunction with the Finance Director showing the status of the City's finances. He reviewed the report, noting that there is $79,011 in the checking account, regular passbook account, $125,676, Certificates of Deposit, $360,000 for a total of $564,687. Developer bonds total $103,650, which is refundable, leaving a balance of $461,000. Paving contract is for $283,000; paid on account $116,000; balance due $167,000. Required for additional paving up to 22nd Street and final coating is $167,000, had the footage been correct. Required to complete the job the way the contract reads the City needs another $50,000, which would make the balance due $217,000 on the paving contract. The City's operating expenses total $175,000 per month. Subtracting the $217,000 and the $175,000 leaves an approximate balance of $69,000. Mr. John Vodenicker of May, Zima and Company introduced himself and Mr. Ted Serbousek, who is in charge of the audit. Mrs. Kinsey said the figures just quoted were as of 12/13/82. Approxi- mately $60,000 of this figure is tax money returned to the City. Mr. Vodenicker noted that in the past the tax money has been used to cover operating expenses. If it is going to be used for the paving programs, the operating budget will have to be reduced, or look some- where else for additional revenue. They are estimating that the general fund balance at the end of 9/30/82 is going to be around $211,000. This is the available surplus to be brought forward into the new budget year. Estimated revenues for the new adopted budget is $1,294,826. This is in addition to surplus. Deducted from this figure is the appropriations of $1,294,826; $150,000 of this is budgeted for the road paving program. The contract is approximately $180,000. The City will end up with a budget deficit for this year of $136,000 if the road paving is funded through the General Fund. Subtracting the $136,000 from the $211,000 would give the fund balance for 9/30/83 of $75,000. Increasing the road paving by $50,000 as discussed would decrease the fund balance to $25,000 for 9/30/83. He noted that it is good fiscal planning to have about 10 percent of the annual budget in surplus. Mr. Vodenicker suggested negotiating a loan with the bank for the amount of the special assessments. You would put in that loan agreement the option of paying back the principal portion earlier. If you do get some of this money back you could put it against the principal. If you decide on the short-term borrowing, do it when the assessments take place. Councilman Ledbetter recommended reviewing the present budget and out items in order to reduce it, perhaps by as much as $100,000. generally agreed that this is a necessity. Mr. Ledbetter thought should consider going out for a referendum creating a special tax in Florida Shores. cutting It was they district , } , ~........ J ~ ~ '-J (.J There was some discussion of doing a survey of the people who are having the work done so they could anticipate revenue. It was suggested that this might be done from the taxrolls. Councilman Asting suggested holding off on finishing the paving until an agreement could be reached with Briley-Wild reo their liability. Councilman Spencer recommended proceeding as quickly as possible with the paving. The workshop was adjourned. Minutes submitted by Joan Taylor. City Council Workshop December 15, 1982 - 2 -