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Discussion ensued regarding financing options for the new Town Hall. The Town could <br /> finance the entire cost of the project; finance a portion of the project and pay the <br /> remainder from Town reserves; or pay for the project entirely from Town reserves. <br /> Certificates of Participation (COP) were reviewed as a financing tool. This method <br /> would not require a vote of the people. The Town would work directly with a bank as <br /> trustee and JPA as a lessor. <br /> At the conclusion of the discussion, Council directed the Finance and Investment <br /> Committee to review in earnest, financing options for the project, including: 1) what <br /> types of financing are available and the costs associated; 2) what policies are in place in <br /> similarly situated Towns for using reserves as a method of financing projects and what <br /> their reserve balances are; and, 3) to make a recommendation to the City Council at their <br /> second meeting in January, 2004. <br /> 3. PRESENTATION OF THE ANNUAL FINANCIAL STATEMENTS FOR THE <br /> YEAR ENDED JUNE 30, 2003 <br /> Administrative Services Director Sarah Joiner introduced this item to the Council and <br /> Committee. Joiner explained that the she had met with the Finance and Investment <br /> Committee and A.J. Major, of Vavinek, Trine Day & Co. the Town's auditors on <br /> November 10, 2003 to review the draft Financial Statements for the fiscal year ended <br /> June 30, 2003. The auditor expressed an unqualified opinion, indicating that the <br /> statements have been prepared in conformity with generally accepted accounting <br /> principles. Carsten reported that the audit would be submitted to several professional <br /> • groups for potential recognition as award winning financial statements. <br /> Frank Lloyd shared a faxed response he had received from Mr. Major to several inquires <br /> he had posed at the meeting. Lloyd had asked the auditor to comment on the accounting <br /> practices of depreciating capital and fixed. assets. Mr. Major had responded that <br /> governmental funds (i.e. the general, special revenue, and capital project funds) are <br /> required to.use the modified method accrual method of accounting. The proprietary <br /> funds use the full accrual method of accounting. Lloyd summarized the letter by saying <br /> that the auditor had noted that it would be inappropriate and not accepted accounting <br /> principles to record long-term assets and depreciate them in a governmental fund. <br /> Frank Lloyd discussed a spread sheet of the overview of Town finances as of June 30, <br /> 2004 that was distributed to the group. Lloyd explained that people generally do not <br /> understand the Town's finances and the overview is a good instrument/analysis to assist <br /> residents appreciate the Town's finances. <br /> Joiner will be making a presentation of this item before Council at their next regularly <br /> scheduled City Council meeting of November 20, 2003. <br /> 4. STUDY SESSION ON THE PROPOSED REVISED OPERATING AND <br /> CAPITAL IMPROVEMENT BUDGETS-FISCAL YEAR 2003-2004 <br /> Administrative Services Director Joiner introduced this item. She explained that at the <br /> time Council adopted the operating and Capital Improvement Program Budgets for Fiscal <br /> 2 Special City Council Meeting Minutes <br /> November 17,2003 <br />