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3.4. SR 12-19-2005 *Item # 3.4.* MEMORANDUM TO: Mayor and City Council FROM: Lori Johnson, Finance and Administrative Services/Interim City Administrator DATE: December 19,2005 SUBJECT: Consider Payment to I.S.D 728 for Little Theater This is the fmal year of a five year agreement approved by the Council in 2001 to pay LS.D. 728 $112,600 per year for a total of $563,000 for the Litde Theater. Past payments were funded through the General Fund and the NSP Reserve Fund when funds were not available in the General Fund. In 2004 the payment was made from the designated 2003 fund balance of the General Fund that exceeded 41.5 percent. The 2004 fund balance did not exceed the 41.5 percent by enough to fund this payment in full. The NSP Reserve fund currendy has a cash balance of $657,000. Recommendation It is recommended that the City Council make the fmal payment of $112,600 from the NSP Reserve fund. s: \ Council\Lori \2005 \Little TheatrePayment1.doc