07-12-06 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL JULY 12, 2000 Gibbs reviewed the City's Annual Financial Report in some detail. He noted that his firm has rendered a clean audit opinion. Gibbs then reviewed the Statement of Net Assets and Statement of Activities, pointing out that given the GASB 34 requirements, changes have been made in how the City is required to report net asseCS. The City's net asset position is extremely sCrong with $33 million in total assets which include infrastructure and capital. The City has a very small liability balance of $4.5 million. The resulting net asset balance is approximately $29 million. Gibbs reported that Little Canada has the ]owest amount of debt in relation to population size of any of the 30 cities that his firm audits. Blesener felt that this was due to the good management of the City's long- time Administrator. Gibbs pointed out that the Statement of Net Assets shows $5.093 million in unrestricted assets, buC noted that the City has designated purposes for these funds. GASB requires Chat Chese funds be reported an unrestricted unless they are restricted by a third party. Gibbs Chen reviewed the summary of the City's General Fund revenues and expenditures, noting that revenues exceeded expenditures. He also pointed out the City's policy to transfer excess General Fund balances to the Capital Projects Fund, which results in a General Fund balance of $1 million. Blesener noted that given the County's disbursement of property tax revenue to the City on a twice per year basis, the $1 million balance in the General Fund is needed to operate the City. Gibbs replied thaC ChaC is correct. Gibbs informed the Council that the City's annual budgeC documenC is the City's most important financial document, and he commended the staff for the job Chey do putting the budget together. He reported Chat he uses the Little Canada budget as a model for ocher cities Chat he works with. Gibbs reported that the budget provides a means for reviewing the City's financial position as well as the City's financial plan for the next year. Gibbs again commended the City's staff for the job they do. Blesener agreed that Little Canada has a very good staff. He thanked Gibbs for his explanation of the 2005 Audit Report. MonCOUr introduced the following resolution and moved its adoption: