Minutes - 2002/03/25 - Laserfiche WebLink

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Mounds View City Council March 25, 2002 Regular Meeting Page 19 Finance Director Hansen explained that, in the beginning of this arrangement, the City was paying in advance and has gone to paying late and he would like permission to pay on a monthly basis because after discussing the matter with the auditor and the management company the confusion as to how to calculate the management fee has been resolved and the matter should become routine. Council Member Marty commented that in the Staff report it refers to the problem as an administrative issue with the former finance director. He then said it is happening with this finance director as well. City Administrator Miller clarified that it is not the same situation. With the former finance director the numbers were continually changing up and down and this is simply a request to increase the fees paid due to increased revenue being submitted. Council Member Marty said he thought it was a good idea but in light of the additional revenue transactions coming in late he suggested a two month delay to allow for accurate figures. Council Member Quick said he did not agree as he feels people should be paid in a timely manner. Council Member Marty said he wanted to get accurate figures after all revenues are in. Council Member Quick indicated the issue is the City needs to pay its bills in a timely fashion. Council Member Marty asked whether the term net revenues is the correct term to be used because he was told at the last meeting that the new contract was based on gross revenues. City Administrator Miller indicated this is a correction to the Resolution and said the City is operating under the same conditions as the other contract. Council Member Marty commented that the other one operated on gross. He then said the City may be paying on net when it should be gross. City Administrator Miller indicated it was her understanding that the City is operating under net revenues and said she would review the matter with the Finance Director. Council Member Thomas explained that the contract used gross revenues defined to apply to a certain type of revenue and this Resolution would correct an error in terminology as the number was a net number. She further explained that all revenues were not included which means revenues cannot be called gross revenues. Mayor Sonterre asked if the language is consistent with language in the contract. • City Administrator Miller indicated that Staff and the auditor's office are recommending approval.