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264 <br /> <br />NOTICE OF SPECIAL MEETING <br /> <br />A SPECIAL MEETING OF THE COUNCIL WILL BE HELD ON Monday, <br />February 1, 1993 AT 12:00 noon IN THE Basement Conference <br />Room. <br /> <br />THE PROPOSED AGENDA IS AS FOLLOWS: <br /> <br />Luncheon meeting with School Board (discussion of <br /> carryover funds) <br /> <br />BY ORDER OF THE MAYOR <br /> <br />BY Jeanne Cox (signed) <br /> <br />BASEMENT CONFERENCE ROOM , February 1, 1993 <br /> <br /> Council met in special session on this date with the <br />following members present: Ms. Daugherty, Rev. Edwards, Ms. <br />Slaughter, Mr. Toscano, Mr. Vandever. <br /> <br /> Mr. Toscano stated that each year the issue of how to <br />deal with a fund balance for the schools is raised and he <br />made a gainsharing proposal based on the principle that <br />rather than having school savings automatically returned to <br />the City's General Fund, the entrepreneurial efforts of the <br />School Board and Division would be rewarded by permitting a <br />portion of the savings to retained by the schools. Mr. <br />Toscano recommended that the following funds be included: <br />Low Rent Housing; Property Damage; Grants Administration; <br />Capital Funds; and any other related to administration monies <br />from state or federal sources. Mr. Toscano presented his <br />proposal as follows: I) Establish school reserve fund under <br />control of Board and Division made up of funds mentioned <br />above; 2) No gainsharing from fund balance until next year; <br />3) Gainsharing.in future would be 50/50 of increase in each of <br />above funds in single year plus 50/50 split in operating <br />surplus (but if a fund declines, no sharing of loss and no <br />spreading of loss across other funds; 4) Cap reserve funds <br />totals at $400,000, with any excess returning to City; 5) <br />School Board and Council receive semi-annual updates on <br />reserve funds and auditorium funds; 6) School Budget should <br />include estimated revenues and expenditures for all funds, <br />including local and non-local, and a detailed accounting of <br />all funds should be kept and reported in the annual financial <br />statement (fund balances to be included as part of school <br />annual budget); and 7) Auditorium account should be <br />established as enterprise fund, with initial balance (and <br />cap) of $50,000. Balance over that amount should be <br />reprogrammed by School Board and Council. As part of this, <br />the agreement as to City subsidy should be revisited to make <br />this fund more self-supporting. <br /> <br /> Ms. Linda Seaman, School Board member, stated that Low <br />Rent Housing funds must be used for low income/disadvantaged <br />youth. <br /> <br /> Rev. Edwards stated that he only concurred with the <br />proposal regarding the auditorium fund as he did not think <br />money appropriated for children should be returned to the <br />General Fund and he would rather reduce the amount <br />appropriated to the schools in the budget. <br /> <br /> Ms. Daugherty stated that she felt the Schools should be <br />able to keep the excess fund, though she would consider <br />placing a cap on the balance to be kept, perhaps in the range <br />of 1/24th of the total budget. Ms. Daugherty expressed <br />agreement with the auditorium fund proposal. <br /> <br /> Mr. Vandever stated that he thought it was inappropriate <br />to allow the schools to keep a reserve when no other agency <br />or City department is allowed to do so. Mr. Vandever stated <br />that while he favored having all reserve funds returned to <br />the City, he thought Mr. Toscano's proposal was reasonable <br />and he would support it. <br /> <br /> <br />