07-28-10 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL JULY 28, 2010 increase in traffic. He noted that in addition to the acquisition of the bakery outlet, the City acquired four mobile homes in the Terrace Heights Mobile I Iome Park and the land swap with Terrace Heights to assemble the needed County Road B-2 right-of way. The Administrator reported that due to alignment issues, this additional right-of--way could not come fi•om the south side of County Road B-2. it was also stated that landscaping of this area will occur once infrastructure work is completed. CANAllIAN Keis noted that the annual Canadian Days Celebration will be held this DAYS weekend, July 30°i through August 151. He invited everyone to come and enjoy the festivities. 2009 AUDIT Peggy Moeller, Tautges Redpath, Ltd., the City's Auditor presented the RF.,PORT 2009 Annual Audit Report to the Council. She highlighted the four individual reports that make up the audit which include the Annual Financial Report, Communication With Those Charged With Governance, Report on Internal Controls, and State Legal Compliance Report. Moeller reported that the City received a clean opinion on its 2009 financial statements included in the Amrual Financial Report. She highlighted the City's property tax collection rate, noting that for 2009 the current collection rate was 96.49% and the total property collection rate was 98.45% (includes past delinquent collections). Moeller reviewed the City's bonded debt which totaled $9,855,000 at the end of 2009. None of this debt is supported through property tax revenues. The debt is comprised of Tax Increment Bonds and Improvement Bonds supported by assessment payments. Moeller then reviewed the General Fund results, noting that the fund balance was $1,513,366 at the end of 2009. There was a positive variance from budgeted revenues over expenditures of $238,814, with an actual surplus of $271,404. With regard to the Stale Legal Compliance Report, Moeller reported that they tested in seven categories, and based on those tests there were two findings. The first was with lack of retention of broker certification, and the second was related to safekeeping of investments. Moeller noted that with regard to the second finding, a broker that was being used did not meet statutory requirements that their main location be within the State of Minnesota. The City Administrator reported on the 1986 Law which established this requirement, and the heightened awareness relative to this law and recent consolidations of brokerage firms. Moeller reported on internal controls, noting that while they offer no opinion on internal control, there was one finding relative to lack of 3