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Mounds View City Council July 24, 2006 <br />Regular Meeting Page 2 <br />Mr. Jahnke brought up his belief that the City is getting into the real estate business. He stated <br />the house that was bought on the back of Simon's has been losing taxes for 10 years. He stated <br />he would like to figure out how much the City has lost in taxes for the years the property has <br />been sitting there. <br />Mayor Many replied that the City has owned the Groveland Road property for six years. He <br />stated the Community Center would cost closer to $750,000 since the cost estimate is nearly <br />$660,000 without architectural drawings. <br />Councilmember Flaherty asked for an update regarding the house behind Simons. Director <br />Ericson stated the EDA authorized demolition last year so there is no house currently on the <br />property and it is now green space. He stated at this point the property is in a holding pattern and <br />the Planning Commission has designated it for redevelopment. <br />William Werner, 2765 Sherwood Road, voiced his opposition to the fitness center. He stated he <br />does not believe residents will pay for the fitness center. He stated the City should not be making <br />a profit on the Community Center. He stated that over $6.2 million is tied up in the building. He <br />suggested the City sell the building and property. <br />Bob Glazer, 2625 Hillview Road, asked about the water quality report that came out a few weeks <br />ago regarding contaminants. He asked about iron and manganese in the water supply, which are <br />major sources of contamination for households, were not included in the report and if they will <br />be reported upon. <br />Public Works Director Lee stated it is not in the report because it is not a contaminant but the <br />information is available because the City does track it. Director Lee stated the health department <br />has not required it be reported on so that is why it was not in the report. Mr. Glazer asked why it <br />wasn't reported on, Director Lee explained it was not because it was not required by the <br />Department of Health. Director Lee explained the Department of Health does not consider it a <br />contaminant. <br />6. SPECIAL ORDER OF BUSINESS <br />A. Resolution 6868 Accepting the Comprehensive Annual Financial Report for <br />the year ended December 31, 2005. <br />Finance Director Beer explained that Aaron Nelson, from the City's auditors, Malloy, Montague, <br />Karnowski, Radosevich & Co will explain the report. <br />Mr. Nelson stated there are three reports regarding financial audit. He noted there was one report <br />from Staff and two from his firm. <br />Mr. Nelson stated on page one, there is an audit summary, which includes an "unqualified <br />• opinion" on financial statements. He stated under government auditing standards, there were no <br />instances of non-compliance, but there was one issue involving internal controls. He stated <br />