08-11-2004 Council Minutes - Laserfiche WebLink

Home Browse Search

MINUTES CITY COUNCIL. AUGUST tI, 2004 highlighted the key points of the audit reporting that the City received a "clean opinion" on its 2003 financial statements. Gibbs reported that the City will have to implement the GASB 34 standard fa the 2004 financial report. This sta~tdard requires that the City begin reporting on both an accrual basis of accounting as well as a modified accrual basis. The City will have to include general fixed assets in balance sheets and depreciate these assets over their useful lives. Gibbs reported that after adding infrastructure assets and bonded debt, the City will still have a positive fund balance. With regard to the General Fund, Gibbs reported that this balance increased by $64,613 during 2003. He noted that the City General Fund balance at December 31, 2003 is required to meet the City's required working capital needs until County disbursements occur in June. The City's total General Fund balance as of December 31, 2003 was $1,579,097. Gibbs reviewed the City's )enterprise Funds, noting that the Water Operating Fund bas a net income from operations of $39,372, while the Sewer Operating Fund bas a net loss of $207,]35. The City Administrator noted this loss is au indication of the City's problem with infibration and inflow. Continuing efforts are underway to resolve this problem. Gibbs indicated that the City paid $465,000 in bond principal in 2003, and bonded indebtedness at the end of December, 2003 was $4,165,000. About $3,000,000 of this amount is'I'TF bonds, with Gibbs noting that the City has very little debt. Gibbs reported that new audit standards regarding fraud risk considerations were implements for the 2003 audit as required by SAS 99. Gibbs indicated that there were no findings as a result of this review. Gibbs informed the Council that the City is a well run/financed City. The City Administrator and Accounting Supervisor have very good financial controls in place. Mr. Blesener introduced the following resolution and moved its adoption: RES'OI,UTIONNO. 2009-8-I73 -ACCEPTING THE 2003 AUDIT REPORT Ab' PRESF'NTED 13Y TA (ITGES REDPATH, I TD. The foregoing resolution was duly seconded by Anderson. Ayes (4) Blesener, Anderson, Montour, Pahey. Nays (0). Resolution declared adopted.