07-13-11 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL JULY 13, 2011 2010 Peggy Moeller, Tautges Redpath, the City's Auditor, appeared before AUDIT the Council and presented the results of the City's 2010 Audit. She noted that the reports issues as part of the audit include the City's Annual Financial Report, Report on Internal Control, Communication With Those Charged With Governance, and State Legal Compliance Report. Moeller reviewed the Annual Financial Report which include the financial statements that are the responsibility of City management. She noted that the role of the independent auditor is to report on the fair presentation of the financial statements. Little Canada was issued a clean opinion on its 2010 financial statements. Moeller then reviewed the City's property tax collection rate, noting the 2010 rate was 98.94% as well as a nine year history of the rate. The 2010 rate shows an improvement over the previous several years. With regard to City debt, Moeller reported that as of 12/31/2010, the City's total bonded debt was $8,940,000 with consists of $4,140,000 in Tax Increment (TIF) Bonds and $4,800,000 in Improvement Bonds. Blesener noted that the City has no levy supported debt, and that existing debt is repaid through special assessment and TIF revenues. Moeller replied that that was correct. Moeller reported that as of 12/31/2010 the City's General Fund balance was $2,404,586. She reviewed 2010 Budget versus Actual revenues and expenses, including transfers in. For 2010 the City's Revenues were $912,318 over Expenses. This included a transfer in from the General Capital Improvement Fund of $591,150 pursuant to the City's interim reserve policy. This transfer was made to ensure that the City had operating capital for the first six months of 2010 since tax revenue collections are not available to the City until mid -year. Moeller reviewed the State Legal Compliance Report listing the categories that were tested as required by Statute. She reported that the City had no compliance findings for 2010. Moeller then reviewed the Report on Internal Control, and noted that the City had one finding — lack of segregation of duties. Moeller reported that this finding is extremely common in small cities small finance staffs. Moeller reported that without adding staff, Little Canada will not be able to eliminate this finding. Moeller then reviewed Communication With Those Charged With Governance and reported that the auditors have no disagreements with management nor did they encounter any difficulties in performing the audit. 2