07-09-2014 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL JULY 9, 2014 CANADIAN DAYS CELEBRATION 2013 AUDIT PRESENTATION Montour noted that the 2014 Canadian Days Celebration will be held August 1 through 3, 2014 in Spooner Park. Canadian Days buttons are now available at the City Center and local businesses. Peggy Moeller, Redpath and Company, City Auditors, appeared before the Council and presented the 2013 Audit. The reports issued relative to the Audit include the City's Annual Financial Report, Report on Internal Control, Communication With Those Charged With Governance, and State Legal Compliance Report. With regard to the Annual Financial Report, Moeller noted that Redpath is issuing a clean opinion on the 2013 financial statements. Moeller then reviewed the City debt pointing out that total bonded debt at the end of 2013 amounted to $5,950,000. She pointed out that bonded debt decreased by $475,000 from 2012 due to annual bond payments. It was noted that bond payments are being made with 'Fax Increment Financing (TIF) proceeds as well as assessment payments, and not with property tax dollars. Moeller reported that the General Fund balance at the end of 2013 was $2,199,982 and noted that revenues exceeded budgeted amounts while expenditures were slightly over budget Moeller reviewed the City's policy relative to the General Fund's minimum unassigned fund balance. The City's reserve policy calls for reserves between 42.5% and 65% of the General Fund, with funds in excess of 65% to be available for transfers to other funds, which have historically been the General Capital Improvement Fund. Moeller noted that the General Fund unassigned fund balance at the end of 2013 is at 67.8%. Therefore, there is the potential to transfer $90,071 to the General Capital Improvement Fund in 2014. With regard to the State Legal Compliance Report, Moeller noted that this report is required by State Statute and the Office of the State Auditor established a task force that developed an audit guide for legal compliance. The audit guide covers seven categories, which Moeller reviewed. She noted that there was one compliance findings in 2013. That finding was the lack of acceptance of donations. With regard to the Report on Internal Control, Moeller noted one finding - lack of segregation. She pointed out that the City has had the finding on lack of segregation of duties for many years which is the result of having a small staff. 2