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Lake City News

Lake City Report - July 30, 2010
Utility Revenue Bonds - Budget

From City Manager Wendell Johnson

Utility System Bonds.

The City received exceptionally good news this week with the issuance of our Utility System Bonds Credit Rating. Standard & Poor's has rated the Utility Bonds AA, with a stable outlook. Moody's rating is A1 with no outlook. These ratings exceeded our expectations. The City’s financial consultant applauded the extraordinary efforts of the City staff and their finance team for this achievement and positive feedback was received on the City and its utility system.

Assured Guaranty offered to insure the repayment of the bond principal and interest for a one-time premium that is about $32,000 less than what we expected.  The analyst initially believed the credit rating would be in the “mid A” range and said with the higher rating they may be able to lower their premium.  

Fiscal Year 2010/11 Budget

The Staff has completed and distributed the Council’s working draft budget.

Budget workshops are scheduled for 6:00 p.m. on August 4th and August 5th in the Council Chambers.

The Staff has provided a “balanced” budget for Council consideration.  A drawdown from the “General Fund” reserve is necessary for the coming year due to substantial reductions in General Fund revenues, primarily in state shared revenue. 

The Staff will offer the following budget enhancement initiatives for Council consideration:

Inventory and identify City owned property that is surplus to the needs of and/or under utilized.   Convert such property to private ownership where possible.

Implement the vehicle leasing program (5-year cycle) to reduce annual operating and maintenance costs and to improve the image of the City’s overall fleet.

Sale of surplus vehicles and equipment.

Implement Residential Storm water Utility Fee to fund Capital Improvement needs Creation of a Storm water Utility Enterprise Fund will enhance the Public Works General Fund Budget.

Continue a hiring freeze other than for public safety and other key positions as determined by the City Manager.

Consider “alternative” Health Insurance program for eligible employees.   

The City Staff Report is available in pdf format here.

New Meeting Calendar New

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Read the City Manager's 2010 Budget and Administrative Report • here.


City Staff Report
 • Week ending July 30, 2010