06-27-2016 Council Packet - Laserfiche WebLink

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