02-26-90 Personnel & Finance - Laserfiche WebLink

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(anmmittrr itrpnrt` PERSONNEL AND FINANCE COMMITTEE Oki tie emu= Ulounrll of Ur tfttg of*nut!! &tie The February 26, 1990 meeting of the Personnel and Finance Committee was called to order by Council Member Ann Puzzello at 4 : 05 p.m. in the Council informal meeting room. Persons in attendance included Council Members Niezgodski, Voorde, Duda, Luecke, Puzzello, Zakrzewski, and Coleman: Kathrine Humphreys, John Leisenring, Steve White, Jeff Reinhart, Don Porter, and Kathleen Cekanski-Farrand. Council Member Puzzello noted that the first item on the agenda was to review Bill No. 10-90 which would authorize Tax Anticipation Time Warrants for 1990. Mr. Leisenring then reviewed three handouts with the committee. The first was entitled "Projected Cash Flow 1990" , the second a graf showing interest revenues for the General Fund, and the third was a General Fund Investment Analysis and a General Fund Borrowing Analysis (copies attached) . Mr. Leisenring noted that a 5. 3 million dollar deficit is projected by April of 1990. The Bill is asking to borrow 5.9 million dollars. He noted that the amount to be borrowed is to cover the deficit and would be consistent with Internal Revenue guidelines addressing arbitrage. Katie Humphreys noted that the City has decided to borrow more money in light of the uncertainty of when the tax distributions would be received and also to allow better management of cash flow. In this way the City may have some flexibility to prepay some of its obligations. She noted that typically tax distributions are received in late March or early April. However currently, such monies are not anticipated until May. In response to a question raised by Council Member Voorde it was noted that the aY g agent a ent will be First Interstate. P Springstead will be the financial advisor and a formal resolution to that effect will be adopted at a special meeting of the Board of Public Works called for tomorrow morning if the City Council acts favorably on Bill No. 10- 90. It was noted that interest cannot exceed 10% in this area.