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Mounds View City Council July 24, 2006 <br />Regular Meeting Page 2 <br /> <br />Mr. Jahnke brought up his belief that the City is getting into the real estate business. He stated 1 <br />the house that was bought on the back of Simon’s has been losing taxes for 10 years. He stated 2 <br />he would like to figure out how much the City has lost in taxes for the years the property has 3 <br />been sitting there. 4 <br /> 5 <br />Mayor Marty replied that the City has owned the Groveland Road property for six years. He 6 <br />stated the Community Center would cost closer to $750,000 since the cost estimate is nearly 7 <br />$660,000 without architectural drawings. 8 <br /> 9 <br />Councilmember Flaherty asked for an update regarding the house behind Simon’s. Director 10 <br />Ericson stated the EDA authorized demolition last year so there is no house currently on the 11 <br />property and it is now green space. He stated at this point the property is in a holding pattern and 12 <br />the Planning Commission has designated it for redevelopment. 13 <br /> 14 <br />William Werner, 2765 Sherwood Road, voiced his opposition to the fitness center. He stated he 15 <br />does not believe residents will pay for the fitness center. He stated the City should not be making 16 <br />a profit on the Community Center. He stated that over $6.2 million is tied up in the building. He 17 <br />suggested the City sell the building and property. 18 <br /> 19 <br />Bob Glazer, 265 Hillview Road, asked about the water quality report that came out a few weeks 20 <br />ago regarding contaminants. He asked about iron and manganese in the water supply, which are 21 <br />major sources of contamination for households, were not included in the report and if they will 22 <br />be reported upon. 23 <br /> 24 <br />Public Works Director Lee stated it is not in the report because it is not a contaminant but the 25 <br />information is available because the City does track it. Director Lee stated the health department 26 <br />has not required it be reported on so that is why it was not in the report. Mr. Glazer asked why it 27 <br />wasn’t reported on, Director Lee explained it was not because it was not required by the 28 <br />Department of Health. Director Lee explained the Department of Health does not consider it a 29 <br />contaminant. 30 <br /> 31 <br />6. SPECIAL ORDER OF BUSINESS 32 <br /> 33 <br />A. Resolution 6868 Accepting the Comprehensive Annual Financial Report for the 34 <br />year ended December 31, 2005. 35 <br /> 36 <br />Finance Director Beer explained that Aaron Nelson, from the City’s auditors, Malloy, Montague, 37 <br />Karnowski, Radosevich & Co will explain the report. 38 <br /> 39 <br />Mr. Nelson stated there are three reports regarding financial audit. He noted there was one report 40 <br />from Staff and two from his firm. 41 <br /> 42 <br />Mr. Nelson stated on page one, there is an audit summary, which includes an “unqualified 43 <br />opinion” on financial statements. He stated under government auditing standards, there were no 44 <br />instances of non-compliance, but there was one issue involving internal controls. He stated 45