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Mounds View City Council June 12, 2000
<br />Regular Meeting Page 11
<br />Fund, only the interest would be utilized for enhancements to park facilities. He advised that this
<br />• item was to formalize what the Council had agreed to approximately one month earlier.
<br />MOTION/SECOND: Stigney/Marty. To Waive the Reading and Approve Resolution No. 5451,
<br />a Resolution Authorizing the Establishment of a Park Dedication Fund and Transferring In
<br />Various Funds to Initially Establish Said Fund.
<br />Ayes - 4 Nays - 0 Motion carried.
<br />C. Acceptance of Comprehensive Annual Financial Report for the Year Ending
<br />December 31,1999.
<br />Finance Director Kessel stated Steve Wischman of Kern, DeWenter, &Viere, manager of the
<br />audit, has provided a management letter which summarizes the audit, and would present this item
<br />at this time.
<br />Steve Wischman, Kern, DeWenter, &Viere, stated his firm has developed a document that
<br />summarizes this item in approximately 10 pages, as well as a larger Comprehensive Report, in
<br />which they have provided an audit opinion. He advised that they provide the City with an
<br />unqualified opinion, which is the highest opinion the City can receive, and this is a fairly
<br />comprehensive document, which contains a significant amount of information. He stated this
<br />presentation would provide the Council with an overview of the management letter, which
<br />• reflects some of the trends and changes in the City.
<br />Mr. Wischman stated at the beginning of the year, the City had $11,209,000 in cash investments,
<br />and at the end of the year, this amount was $10,514,000. He explained that most if not all of this
<br />is comprised of short-term investments, i.e., very secure government securities and money
<br />market type funds. He indicated the cash in the checking account was relatively insignificant
<br />compared to the investment balance, however, at $118,595, it was slightly higher at the end of
<br />1999.
<br />Mr. Wischman advised that the General Fund is the general operating fund of the City, and the
<br />majority of the dollars flow through that fund. He indicated the Special Revenue Funds are the
<br />Park Dedication Funds and other funds, which are utilized for special purposes. He stated the
<br />Debt Service Funds accumulate the resources to pay the City's general long-term bonds, and the
<br />Capital Projects Funds include the Community Center and State Aid Capital Projects Funds. He
<br />advised that the Enterprise Funds comprise the Water, Sewer and Golf Course Funds, and there
<br />is a minor Trust and Agency Fund, which is utilized to account for some deposits, the Lakeside
<br />Park project, and items of this nature.
<br />Mr. Wischman stated the General Fund had a decrease in cash of approximately $200,000. He
<br />explained that the actual fund balance, which is the net change or surplus in the General Fund,
<br />decreased by approximately $118,000, mostly as a result of transferring out approximately
<br />$309,000 to the Park Dedication Fund. He advised that these are resources that were
<br />• accumulated for a number of years, and have now been split out and put into the Special Revenue
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