Agenda Packets - 2005/08/22 - Laserfiche WebLink

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Mounds View City Council July 11, 2005 Regular Meeting Page 8 Mr. Nielsen noted page five and six discusses the governmental funds including the General 1 Funds and it includes the revenue per capita in 2004. He reviewed the individual funds, general 2 funds and cash balances with Council. He noted that City has been able to maintain and increase 3 the cash and fund balances despite the legislative cuts, which is important with the size of the 4 growth and the size of the operations. He stated that the overall impact to the General Fund was 5 very close to the anticipated final budget and reviewed with Council. He referenced the 6 Enterprise Funds stating that it has remained relatively stable noting that it has improved due to 7 decreases in some of the contract agreements from 2003 to 2004. He stated that it is very 8 important to monitor the utility rates to make sure they are charging a rate that would generate 9 replacement costs and to cover the overhead costs. 10 11 Mr. Nielsen stated that there was an improvement in the operating costs for 2004 over 2003 and 12 reviewed with Council. He reviewed the Golf Course operating funds stating that it is an 13 enterprise fund treated by the City. He stated that they did report a net increase in assets of 14 $116,000 after reporting a reduction of net assets in 2003 of $248,000.00. He stated that the 15 increase in assets is largely due to a transfer from the Community Capital Fund, as approved by 16 Council, and also because of the billboard revenues. He stated that the improvement in 17 operations helped the interfund borrowing between the Golf Course Fund and the Community 18 Capital Project Fund by $37,000.00 this year. He reviewed the Citywide Financial Statement 19 presentation noting that the Gasby 34 model does require a separate review of the financial 20 statements as separate entities adding that there is an additional discussion and analysis included 21 for their review. He stated that the City’s total net assets did increase by $2.3 million and 22 reviewed the overall City activities. 23 24 Mayor Marty stated that this is a good report noting that the deadline for reporting was June 30th. 25 He explained that the former Finance Director was concerned that the City would have to apply 26 for an extension and asked if they were able to meet the deadline. 27 28 Mr. Nielsen stated that they did apply for an extension but it was denied by the State. He stated 29 that they worked hard to meet the June 30th deadline and it was submitted on time. 30 31 Council Member Flaherty referenced page 4, Schedule of Findings and Recommendations 32 regarding the segregation of duties stating that it surprised him to see the recommendations that 33 the City continue to segregate duties wherever it can adding that it was his thought that cross-34 training was a good process and asked why they recommended further segregation of duties. 35 36 Mr. Nielsen explained that there is a need to have someone separately reviewing and approving 37 the work to ensure that it checks and balances. 38 39 Council Member Flaherty asked how they track payments to the sub contractors. 40 41 Mr. Nielsen reviewed the tracking process noting that before making final payment to a general 42 contractor a confirmation from the State must be received to ensure that all taxes have been 43 deducted from their payroll checks. 44 45