07-08-09 Council Minutes - Laserfiche WebLink

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MINUTTS CITY COUNCIL JULY 8, 2009 Compliance Report. Moeller reported that the City received a clean opinion on its 2008 financial statements. Moeller then reviewed the City's property tax collection rate which was 97.64% in 2008. She also provided a seven year history of this collection rate, noting the rate has declined over that time period. This is likely due to the economy, and Moeller reported that the City factored in a lower rate in preparing the 2009 Budget. Moeller reviewed City Debt reporting that the City has $8,030,000 of total bonded dept at the end of December, 2008. $3 million of this debt is in improvement bonds which are supported by property taxes and special assessments. $5 million is 'fax Increment Financing to be repaid from future tax collections. Moeller noted that the City's debt is at the low end and it has almost $20 million in unused debt limit. Moeller then reviewed General Fund results noting 2008 revenues over expenses at $220,496 and interest years budgeted to actual are at ($9,361). Moeller attributed the over-estimation of interest due to the economy, and indicated that Little Canada budgeted conservatively, therefore, did not have as large a variance as some other cities did. Moeller reported that there are many reasons that the City has to maintain balances for cash flow noting the timing of property tax disbursements from the County as well as the history of LGA unallotments. She also noted the City's goal of transferring excess budget amounts to the General Capital Improvement Fund and pointed out that $100,488 was transferred from the 2008 Budget balance. With regard to the State Legal Compliance Report, Moeller reported that the City received a clean report. There were two findings relative to the Internal Control Report, and Moeller reported that these findings are typical of a small city with a small staff. Moeller reported that there is a cost/benefit analysis relative to the elimination of these findings through the hiring of additional staff. One of those findings relates to separation of duties, and Moeller reported that there is a very low threshold that triggers this finding. Again, these findings are common ones for small cities, and it is uncommon for small cities to have no internal control findings. With regard to the Communication report, Moeller reported that there were no disagreements with management or difficulties encountered in performing the audit. Moeller reported that for the 2009 Audit, the City will be required to implement GASB 45-Other Post Employment Benefits. She noted that the City does not pay retiree health benefits, but retirees would have the ability to stay on the City's health plan at their own cost. Moeller reported that the GASB 45 reporting requirements are fairly complex and time-consuming, and she would recommend that the City obtain an actuarial report relative to these requirements. If the report was