Laserfiche WebLink
CITY COUNCIL WORK SESSION <br />APPROVED <br />June 6, 2016 <br />1 CITY OF LINO LAKES <br />2 MINUTES <br />3 <br />4 DATE June 6, 2016 <br />5 TIME STARTED 6*00 p.m. <br />6 TIME ENDED 10010 P.M. <br />7 MEMBERS PRESENT Councilmember Rafferty, <br />8 Maher, Manthey and Mayor Reinert <br />9 MEMBERS ABSENT Councilmember Kusterman <br />10 <br />11 Staff members present: City Administrator Jeff Karlson; Community Development <br />12 Director Michael Grochala; City Planner Katie Larsen; City Engineer Diane Hankee; <br />13 Finance Director Sarah Cotton; Public Safety Director John Swenson; City Clerk Julie <br />14 Bartell <br />15 <br />16 1. Review 2015 Annual Audit, CliftonLarsonAllen, LLP — Finance Director <br />17 Cotton noted a written presentation before the council and introduced auditor <br />18 representatives. <br />19 <br />20 Daniel Persaud, CliftonLarsonAllen, began the PowerPoint presentation (on file). He <br />21 noted review of internal controls, adding that there were no weaknesses indicated. They <br />22 do review legal compliance and found no exceptions. Regarding required <br />23 communications, he noted the reasonable assurance, new accounting policies, significant <br />24 accounting estimates, the change in estimate for depreciation and adjustments. <br />25 <br />26 The council reviewed slides indicating cash and investments, expenses and the <br />27 expendable net position. Mr. Persaud reviewed with the council a graph of the city's <br />28 revenues and expenditures in order to see any significant changes. It was noted that the <br />29 change in finance systems has allowed the depreciation within funds to occur more <br />30 regularly. <br />31 <br />32 Chris Knopik, CliftonLarsonAllen, continued the presentation. He reviewed information <br />33 on expenditures and transfers from the city funds. In looking at the water and sewer <br />34 fund, there is a one year dip in operating income but it is really related to the effect of the <br />35 previously explained depreciation catch-up and it will correct itself next year. Another <br />36 graph indicated that the spendable position of the water and sewer funds is rising. Debt <br />37 service for the next five years was presented in a graph. Also pointed out was the City's <br />38 receipt of the GFOA Certificate of Excellence in Finance Reporting and Governmental <br />39 Accounting Standards Board (GASB) Statements. He noted finally that the change in <br />40 financial software is something they watch very carefully but that has been well managed <br />41 by the city. <br />42 <br />43 Council Member Manthey noted the debt service graph and asked, looking past five <br />44 years, would it be typical to see debt going up and down? Mr. Knopik explained that it is <br />45 average to see debt coming on as other is paid off. Mayor Reinert suggested that <br />