4.0 ERMUSR 11-14-1994 - Laserfiche WebLink

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( / A( ity of lk �� River MEMORANDUM TO: MAYOR, CITY COUNCIL AND UTILITIES COMMISSION FROM: PAT KLAERS, CITY ADMINISTRATOR DATE: NOVEMBER 4, 1994 SUBJECT: UTILITIES CONTRIBUTION TO THE CITY'S GENERAL FUND As everyone on the Utilities Commission and the City Council knows, the annual cash contribution to the City general fund is an often-discussed topic around budget time. My position is that both groups should agree on a formula for a cash contribution to the general fund that is based on a percent of gross revenues (or gross Elk River revenues). I don't want to "beat a dead horse", but nonetheless, some background • information and data on this issue needs to be provided. RECENT HISTORY Prior to 1987, the cash contribution from the Utilities Commission to the City was $12,000. Additionally, the Utilities financed street lighting expenses. In 1987, the cash contribution level increased to $72,000. Since 1987, the City has asked for additional funds from the Utilities on three different occasions. Two of the requests were for specific items which were approved by the Utilities Commission (the Industrial Park loan and the Fire Department equipment van). The third request was for a general increase in the annual cash contribution. This request was not approved by the Utilities Commission, but the Commission provided an equivalent which was free electrical expenses for our non-enterprise facilities. I want to make it very clear to everyone that the additional contributions since 1986 are greatly appreciated by the City. 1995 BUDGET In review of the 1995 general fund budget, the City Council discussed the • Utilities cash contribution and debated (1.) asking for an additional 13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • (612) 441-7420 • Fax: (612) 441-7425