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<br />now keep track of each billing cycle and see what percentage was being collected. She <br />noted that the Finance Department billed about $1.4 million dollars on the last cycle and the <br />City was able to collect 75%. Ms. Charumilind did mention that there are old uncollectible <br />bills in the system in the amount of $1.6 million. The collection agency has not been able to <br />collect much from the bills the City sent to them. <br /> <br />Mr. Price asked where the two million dollar surplus came from. Ms. Charumilind stated <br />that last year the total revenues received minus the total expenditures was two million <br />dollars. He asked what surplus meant to the finance department. Ms. Charumilind said that <br />was extra money that would go into the Fund Balance. <br /> <br />Mr. Walker said the budget allocation was 26 million dollars and the City spent <br />approximately 24 million dollars. He stated the revenues came in as projected by the <br />Finance Department and all departments reduced expenditures, which provided the surplus. <br /> <br />Mr. Glickert asked about the collection on bills sent for use of a U City ambulance. Ms. <br />Charumilind said the system sends the bills to Medi-Claim and they deposit any money <br />received in payment, directly into the City’s bank. Any non-collectible items are sent back to <br />the City. The City has not been able to collect anything on those bills. Ms. Charumilind <br />said a million dollars of unpaid bills have been sent to the collection agency and so far they <br />have only been able to collect $15,000. The City asked for the reason of not being able to <br />collect and Ms. Charumilind stated that the majority of the non-payments were because the <br />persons were deceased. <br /> <br />Mr. Walker noted to Council that in regards to the trash collection, it goes back over twenty <br />years. He said a lot are not around anymore and property has been passed along to their <br />children. The culture in U City at one time was that they would not try to collect from a <br />resident who said they did not have the money to pay the bill. <br /> <br />Ms. Carr asked if some of the two million dollars was encumbered. Ms. Charumilind said <br />the dollars encumbered for specific projects had been accounted for before the two million <br />dollar surplus. Ms. Carr asked why money is taken from the reserves as now the City has <br />an additional two million dollars to spend. Mr. Walker stated that the money all goes into <br />the same place. Ms. Charumilind stated the two million dollars goes into the fund reserves <br />which is called the unassigned fund balance. <br /> <br />Mr. Crow stated that maybe Council should determine if the surplus money should go into <br />the reserves just as Council approves money that would be taken out of the reserves. <br /> <br />Mr. Sharpe asked what was in the Reserve Account. He was told the reserve account has <br />13 million dollars, which included the two million dollar surplus. <br /> <br />Mr. Glickert asked what that equated to as a percentage of revenue. Ms. Charumilind said <br />it was calculated on percentage of expenditure which would be 50%. She stated in a <br />survey she did recently, many cities have much more than 50% as Maryland Heights has <br />100% in their reserves. <br /> <br />The study session was adjourned at 6:27 p.m. <br /> <br />Joyce Pumm, MRCC, MCC <br />City Clerk <br />5 <br /> <br />