Minutes - 2002/07/22 - Laserfiche WebLink

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Mounds View City Council July 22, 2002 Regular Meeting Page 14 Finance Director Hansen indicated that the accounting had been changed for this year so last years numbers are not comparable. He then explained that the City had determined to begin allocating costs associated with the building to each of the four tenants. He further explained that the banquet center is turning a profit on each event but not when you figure in the overhead costs. Finance Director Hansen commented that the number for the banquet center concerns him as much as the number for the YMCA because he would have expected the banquet center to be at least breaking even. Council Member Marty asked whether both the YMCA and banquet center were being charged for utilities and devaluation of the building. City Administrator Miller indicated the same was true of all entities that exist in the building. She then said that the intent was to do this so that Staff could review the contracts and see if they made sense. Council Member Thomas asked for an update on Creative Kids. City Administrator Miller indicated she had heard nothing more on that. • Council thanked Finance Director Hansen for his report. Finance Director Hansen reviewed the activities of the Finance Department and indicated that there have been discussions with Springsted for refinancing the water revenue bond which should save the City $100,000 in interest over the remaining life of the bond. Finance Director Hansen indicated that the City's insurance contracts were up for renewal on July 1, 2002 and the proper applications were submitted to the League of Minnesota Cities but underwriting is backlogged and he expects to hear from them soon. Finance Director Hansen indicated his department is working on two other major projects and that is the completion of the annual audit and report for 2001 and the budget for 2003. He then indicated that the department is approximately two months behind on both of these projects and there are a number of issues contributing to the delay including a backlog of work when he started, getting the new accounting system up and running, and the strike. Finance Director Hansen indicated he had intended to present the audit report at the August 5, 2002 work session but due to the work needing to be finished yet that will not be possible. He then asked if Council would be willing to meet on August 19, 2002 to discuss the audit and budgeting issues. . Mayor Sonterre indicated there is a retreat scheduled for Monday and suggested schedules be discussed at that time.