5.4. SR 05-04-1998'ity of
River
MEMORANDUM
Item # 5.4.
TO:
FROM:
DATE:
SUBJECT:
Mayor & City Council
Pat Klaers, City ~_d_q~is~rator
May 4, 1998 ~
1997 Audit and City
Computer/Technology Needs
The 1997 year end Audit is very positive in terms of additional monies being
added to the fund balance in the general fund. One of the main purposes of a
healthy fund balance in the general fund is to have monies available to
address one time capital needs.
As we approach the year 2000, the city anticipates needing approximately
$150,000 to address the upgrading of the police computer system, the
upgrading of the city hall voice mail system, the addition of computers for
police and city hall employees, and other similar technology/computer related
situations. Anywhere from 1/2 to 2/3 of this total will be needed to address
the computer situation in the police department. No funds are in the 1998
budget for these capital improvements and it will be very difficult to
incorporate a capital expenditure of this magnitude into the 1999 budget.
Use of the city fund balance that is in the general fund is appropriate for this
type of one time expenditure.
Recommendation
After the City Council reviews and accepts the 1997 Comprehensive
Financial Report, it is recommended that the Council approve the use of
approximately $150,000 from the fund balance to help address the city
computer/technology needs.
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425