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Bondi & Co., gave a presentation regarding their <br />findings of the 1988 Audit. <br />Ms. Higgins detailed the Audit stating the City <br />did better than it anticipated in the areas of <br />increased revenues and decreased expenditures <br />overall. In addition, as auditors, Bondi & Co is <br />required to confirm and have verified that the <br />City's cash with the outside parties is insured or <br />collateralised; therefore, the money is not at <br />risk. <br />Ms. Higgins responded to Sackett's question as to <br />the City's actual debt by stating that the City's <br />total debt including the golf course and the sewer <br />debt/liability is $22 million and that although <br />the City's liability has increased over last year, <br />and assets have greatly increased giving the City <br />a higher fund balance. Sackett asked if that <br />could be interpreted as the City being in better <br />condition this year over last year. Ms. Higgins <br />stated that Mr. Sackett's assessment was correct. <br />Mohr asked Ms. Higgins where she would place this <br />Council in terms of their commitment to <br />conservative fiscal management over the last three <br />years. Ms. Higgins stated that the progress that <br />has been made over the last three years is <br />"phenomenal" as when she first looked at the <br />City's financial statements three years ago she <br />was somewhat concerned and now feels very positive <br />about Council's direction by 1) increasing the <br />City's General Fund Balance by almost two-fold; 2) <br />reducing the City's long-term debt; 3) the <br />establishment of a debt-service fund; and 4) the <br />City's approval of a sales tax increase. <br />Ms. Higgins stated that the structuring of the <br />golf course debt was very positive as the City can <br />walk away from that debt. There is no liability <br />to the residents of Louisville if for some reason <br />the City were to get into financial trouble, the <br />golf course would not be a liability. In terms of <br />liability of the City's remaining debt, Ms. <br />Higgins stated that as long as there is money to <br />fund the debt, no one should be concerned as the <br />auditors aren't concerned -- money has been <br />budgeted and the debt has been planned for. <br />Mayor Fauson commended Finance Director, Sharon <br />Asti-Caranci for her commitment and ability to <br />provide the Council with an excellent financial <br />statement with regard to the 1988 audit. <br />4 <br />