08-31-88 Council Workshop Minutes

Home Browse Search

MINUTES City Council August 31, 1988 1987 The Fluditor submitted to the Council a hand-out detailing the net Audit asset value of the Franklin Fund over the last sever~al years. The Repor•t Auditor• pointed out that during the later par~t of 1987 and continuing into (Cont.) the first five months of 1988, the market value of the fund decr•eased by approximately $83,000. The Auditor• was unsure whether• the decline in the net asset value of the fund would continue. However, the book value of the investment was decreased by the $83,000 market decline and City investment earnings were reduced accordingly. The Council discussed the Fr•anklin Fund in detail with the concensus of the Council that City funds currently invested in the Fund, including interest earnings, should r•emain. However, the Fund should be monitor~ed with the Council taking another• look at it at year-end. The Auditor pointed out that tax collection rates and special assessment collections ar•e being collected by the City at a good rate. The Auditor r•eviewed an over•payment made to a contractor during 1987 which was still receivable at December 31, 1987. The Auditor recommended that the City review and amend its payment procedur~es to avoid such situations in the future. The City Clerk r~eviewed for• the Council the circumstances in the overpayment, pointing out that the contractor has now reimbur•sed the City. The Council discussed this incident and it was the concensus of the Council that a pr~ocedur•e be set up that in instances wher~e an over~pament occurs a letter~ should be sent to the contractor advising of the over~payment and requesting r~eimbursement. The Council felt this procedure should be issued to office staff, including the City Engineer~'s office. It was also the concensus of the Council that due to the circumstances sur~roundi ng the over•payment whi ch occur•r~ed i n 1987 and fai 1 ur•e of the contractor~ to r•eimburse the City in a timely manner, the contractor be sent a letter r•equesting 6% inter•est on the amount of over•payment, for the length of time the contractor held onto the City's money. The Council felt that the contr•actor should be advised that if the interest payment is not made, the City would advise the League of Minnesota Cities about the contr•actor's actions in holding onto this over•payment, and this infor•mation would be forwarded to other cities who may be considering the contr•actor for projects in their• cities. The Auditor then r•eviewed the developer r•eceivable amounts at the end of December, 1987 which r~epresented $82,743 and ar~e expenditures made by the City on behalf of developer~s. The Auditor• r•epor•ted that appr~oximately 80 of these separ•ate accounts wer•e closed to the Gener•al Fund in conjunction with the audit and ther•e are approximately 100 more such accounts r•equiring further action by the City. The Auditor recommended that the City r•eview and amend its policies and procedures on the use of these accounts. All such accounts should be monitor~ed and reviewed at least on a quarter~ly basis. Page -2-