08-13-97 Council Workshop Minutes (2)

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MINUTES OF THE WORKSHOP MEETING C1TY COUNCIL LITTLE CANADA, MINNESOTA AUGUST 13, 1997 Pursuant to due call and notice thereof a workshop meeting of the City Council of Little Canada, Minnesota was held on the 13'~' day of August, 1997 in the Council Chambers of the City Center located at 515 Little Canada Road in said City. Mayor Michael I. Fahey called the meetin~ to order at 6:37 P.M. and the following members of the City Council were present at roll calL CITY COUNCIL: Mayor Mr. Michael I. Fahey Council Member Mr. Jim LaValle Council Member Mr. Bob Pedersen Council Member Mrs. Beverly Scalze ABSENT: Council Member Mr. Steve Morelan ALSO PRESENT: City Administrator Mr. Joel R. Hanson City Auditor Mr. Mark Gibbs Accountant Mrs. Julie Manville-Camp Admin. Assistant Mrs. Kathy Glanzer 1996 Mr. Mark Gibbs, Tautges, Redpath & Co, Ltd., appeared before the FINANCIAL Council and presented that 1996 Annual Financial Report as well as the STATEMENTS 1996 Management Report and Recommendations. Gibbs reviewed the & AUDIT Management Report and Recommendations in detail providing an REPORT update on the upcoming changes in Governmental Accounting Standards. One of the results of these changes is Yhat the City will be required to record all investments at fair market value. Cureently, investments are recorded at amortized cost. This change will result in greater "swings' in investment earnings because of market values. Gibbs reported that the City's cash and investments at the end of 1996 totaled $7,662,773, which is a decrease of $232,768 from 1995. Gibbs provided a comparison of the carryin~ value and market value of the City's investments. Beginnin~ in 1998, unrealized losses would show up as negative interest earnings. However, the City will realize full value on its investments if they are held to maturity. Gibbs recommended that the City continually monitor the status of carrying value versus market value for its investments.