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City Council Regular Meeting Minutes May 28, 2003 Page 8 1 months, the duration and inconveniences of construction activities could be reduced to the 2 residents within the project limits. 3 4 Mayor Hodson thanked Mr. Hubmer and stated that he had been very impressed with the layout 5 of the blue flier that had been mailed. 6 7 C. Presentation of City's 2002 Audit. 8 Stuart Bonniwell, CPA, addressed the Council and provided an overview of his 2002 Audit of 9 the City. He stated that the financial condition of the City continues to remain strong. The 10 governmental (operating) funds of the City, consisting of the General Fund, Special Revenue, 11 Debt Service and Capital Project funds, remain healthy. The City's proprietary funds (enterprise 12 funds—liquor and utility) are also financially strong. 13 14 Councilmember Sparks asked if spending on safety was high because it included the Lauderdale 15 and Falcon Heights police contracts. Mr. Bonniwell responded that the expenses have been 16 separated and allocated to those contracts. The dollars had been taken out and not reported as 17 safety expenses. Councilmember Sparks asked if it was not included on the State audit report. 18 Mr. Bonniwell responded that it was not included. 19 20 Mayor Hodson noted that it appeared the City of St. Anthony was financially sound for another 21 year, which continued to reaffirm a competent staff. Mayor Hodson thanked Mr. Bonniwell for 22 the report. 23 24 John Mondati, 3420 High Crest Road, came forward to address the Council. He stated he was 25 concerned about the use of chlorine in the water supply, as he felt there was a risk the chlorine 26 caused cancer. Mr. Mondati suggested the City convert the system to use a different chemical to 27 sterilize the water supply. 28 29 Motion by Councilmember Faust to approve the City's 2002 Audit. 30 31 Motion carried unanimously. 32 33 D. Resolution 2003-040, re: Entering into a Lease Agreement with the HRA. 34 Mr. Gilligan stated this would be a standard lease for this type of facility. The City would be the 35 party constructing the facilities, not the HRA. 36 37 Motion by Councilmember Sparks to adopt Resolution 2003-040 re: authorizing the execution of 38 a ground lease and a Lease Agreement providing for the acquisition, construction and furnishing 39 of a public works facility and a fire station and the lease thereof by the City, and approving the 40 form of a resolution and an official statement. 41 42 Motion carried unanimously. 43 44 VII. GENERAL POLICY BUSINESS OF THE COUNCIL. 45 None. 46 47 VIII. REPORTS FROM CITY MANAGER AND COUNCILMEMBERS.