was put in the capital fund for future use. With the tight economy still existing, the mayor will work for restraints in spending. A report on the annual independent audit was made by Steve Davis, Independent Auditor. He advised that the city was in good financial shape. He also thanked the city personnel for the cooperation and assistance he received during the audit. The problem of the city receiving all of the sales tax funds to which it is entitled, remains a concern, inasmuch as the revenue which runs the city comes from this tax. The method of distribution by the state to the proper entities can result in loss of income through improper allocation. In April the FY 2003-04 budget came under scrutiny when the State Auditor indicated the city is not in compliance with state law regarding the general fund balance limitations. The problem was corrected by transferring the excess funds to the capital projects fund, which required an amendment to the budget. The amendment was passed following a public hearing on the proposal on May 20, 2004. The FY 2004-05 Capital improvement Plan was also approved at the April City Council meeting. In October we received the good news from Mayor Butler that the sales tax revenue was better than expected for the last quarter of the fiscal year, ending in June 2004. Expenditures were also down, due to careful management. Governance A public hearing is the public's opportunity to have input on matters which concern our community. Public hearings were held by the City Council on May 20, 2004, for public comment on ordinances and resolutions concerning zoning map changes, budget amendments, budget approval, and other matters. The FY 2003-04 amended budget and the FY 2004-05 budget were both approved by the council on that date. The $861,000+ budget includes projects such as a new office and senior building. Another public hearing was held on October 21, 2004, concerning several zoning and land use ordinance changes. Among the widely varied changes included were those clarifying definitions to the zoning chapters, the permitted uses and number of animals in agricultural zones, conditional uses relating to animal hospitals, the number of horses in stables, addition of regulations concerning encroachment into lot area or height limits, and site development standards. Also included were yard regulations, including animal and fowl building setbacks, fence limits of six feet, exterior lighting, or "dark sky" regulations and allowing R-2 zoning on up to 10% of gross subdivision areas; smaller lots with more open space, still maintaining the one acre overall. Outdoor storage and junk automobile regulation was addressed, as were performance standards. The gas company asked the city to put in the ordinance that gas lines be turned off before demolishing a building. Subdivisions with 15 lots or more would require two roads, and new driveways require a permit, to insure proper drainage is maintained. Prohibited discharges were added to storm drainage regulations. The street trees and placement provision was amended. After public comments the public hearing was closed and the public meeting was reopened. Considerable discussion by the council followed, after which the provision on fence height limits was removed for future discussion, a requirement for a conditional use permit for school bus parking was removed, and the junk/dumping provision was removed for a joint session with the Planning Commission to work on the provisions. After minor changes in wording, the changes were approved by the council. In January 2004, Elaine Jensen, representing the Weber County School District, requested a common boundary adjustment with Ogden City, to facilitate services for the Two Rivers High School on 12th Street. The building was formerly occupied by IRS, and annexed by Ogden City. The city council passed the needed resolution, but Ogden City declined the boundary adjustment. In March the Weber County School District asked that the request for boundary adjustment be withdrawn.