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19 <br /> <br />NOTICE OF SPECIAL MEETING <br /> <br />A SPECIAL MEETING OF THE COUNCIL WILL BE HELD ON Monday, March 13, <br />2000 AT 7:00 p.m. IN THE Basement Conference Room. <br /> <br />THE PROPOSED AGENDA IS AS FOLLOWS: <br /> <br />Budget Work Session <br /> <br />BY ORDER OF THE MAYOR <br /> <br />BY Jeanne Cox (signed) <br /> <br />BASEMENT CONFERENCE ROOM - March 13, 2000 <br /> <br /> Council met in special session on this date with the following members present: <br />Mr. Caravati, Mr, Cox, Ms. Daugherty, Ms. Richards, Mr. Toscano. <br /> <br />FINANCIAL POLICIES/BUDGET ASSUMPTIONS AND STRATEGIES <br /> <br /> Mr. O'Connell said that he is prolx~si~ that a policy be put in the budget that any <br />year-end tim balance over I2% remaining after the year-end audit be transferred to the <br />capital fund. <br /> <br /> Mr. Caravati asked if doing so would preclude using the money for more <br />important issues should they arise. <br /> <br /> Mr. O'Connell said that Council could change the policy if needed, but having the <br />policy in place would stress the nature of one-time end of year money. <br /> <br /> Ms. Daugherty said there would need to be a clear accounting that this transfer <br />has been made. <br /> <br /> Mr. Cox said he does not particularly feel he wants to go this route and would <br />rather hear there is a surplus and a recommendation for its use. <br /> <br />Ms. Daugherty said she shares some of the concerns expressed. <br /> <br /> Ms. Daugherty asked where the decision to maintain a 12% fund balance came <br />from, and Mr. O'Connell said that maintaining a fund balance is recommended by bond <br />agencies to protect against emergencies, though the percentage varies. <br /> <br /> Mr. Cox asked the amount of money available if the fund balance was reduced to <br />10%, and Ms. Linda Peacock, Assistant City Manager, said that it would amount to $1 <br />million in one time money. <br /> <br /> Mr. Toscano said that if COuncil does something too precipitously it could reduce <br />the City's bond rating to AA. <br /> <br /> Mr. Caravati said perhaps it is time to reduce the fund balance by .5% and use the <br />savings to fund capital projects rather than having to issue bonds. <br /> <br /> Mr. O'Connell said that bond agencies prefer the City to reduce the fund balance <br />as part ora long-term plan and study and not as part of the budget discussion. <br /> <br /> Mr. Caravati again said he would tike to reduce the fund balance by .5% in this <br />year's budget. <br /> <br /> Ms. Richards said she would like to know more about bonds, and Mr. O'Conneil <br />said a session can be scheduled with Council and the City's financial advisor. <br /> <br /> Ms. Daugherty asked that staffprovide information on what a .5% reduction <br />would mean in dollars. <br /> <br /> <br />