06-28-2010 Council Minutes (2) - Laserfiche WebLink

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CITY COUNCIL WORK SESSION June 28, 2010 APPROVED CITY OF LINO LAKES 2 MINUTES 3 4 DATE : June 28,2010 5 TIME STARTED : 5:33 p.m. 6 TIME ENDED : 6:23 p.m. 7 MEMBERS PRESENT : Councilmember Gallup, O'Donnell, 8 Rafferty, Roeser and Mayor Reinert 9 MEMBERS ABSENT : None 10 11 12 Staff members present: Director of Administration Dan Tesch; Director of Finance Al 13 Rolek; Economic Development Coordinator Mary Alice Divine; City Engineer Jim 14 Studenski; City Planner Paul Bengtson; Police Captain Kent Strege; City Clerk Julie 15 Bartell. 16 17 1. Review Annual 2009 Audit,LarsonAllen LLP—Finance Director Rolek noted 18 that each year the city undergoes an internal audit as required under state statute. Larson 19 Allen has come in and thoroughly reviewed the city's financial operations. 20 21 Craig Popenhagen, Principal, and Michelle Bruley, Senior, of the Larson Allen firm first 22 presented a written document outlining their presentation. Ms. Bruley reviewed the 23 required communications relative to the firm's assurance on the audit,the absence of any 24 new accounting policies,the use of accounting estimates and cooperation received from 25 management. She noted the general audit results of no exceptions found within internal 26 controls or state compliance. Mr. Popenhagen reviewed the city-wide statement of net 27 assets, a view that gives a snapshot of the city's financial picture that shows there have 28 been lots going on in the last five years. A healthy level of cash and investments has been 29 maintained. Ms. Bruley reviewed general fund revenues, noting that license/permit and 30 intergovernmental revenues are substantially down. Ms. Bruley reviewed general fund 31 expenditures, noting the decrease in spending in 2009. The auditors reviewed the 32 unreserved fund balance which dropped slightly in 2009 but remains at about 60%of 33 annual expenditures (a good mark for financial health). Operating income was reviewed 34 and it was shown that each of the past five years has included positive operating income; 35 water and sewer funds were especially outlined. Regarding debt service,the auditors 36 provided a snapshot of outstanding debt and obligations (without consideration of any 37 new debt). In summary,the council heard about new and upcoming accounting 38 requirements as well as the city's receipt of the Government Finance Officers Association 39 (GFOA) Certificate of Achievement for Excellence in Financial Reporting, for the 40 fourteenth consecutive year. 41 42 Based on questions, the Finance Director discussed how the city finances animal control 43 work and how forfeited property is handled. 44 45 The auditors will present the results at the upcoming city council meeting. 1