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1 <br />VI. GENERAL BUSINESS OF COUNCIL. 2 <br /> 3 <br />A. Presentation of 2018 Audit 4 <br /> 5 <br />Ms. Peggy Moeller, Redpath, Ltd. presented a summary of the 2018 Audit Review. The reports 6 <br />that were issued included the Comprehensive Annual Financial Report, State Legal Compliance 7 <br />Report, Report on Internal Controls and Communication with Those Charged with Governance. 8 <br />The financial statements are the responsibility of management, the role of the Independent 9 <br />Auditor is to report on the fair presentation of the financial statements and a Clean Opinion was 10 <br />issued on the 2018 financial statements. Ms. Moeller reviewed the Financial Results including 11 <br />the General Fund, the Water and Sewer Enterprise Fund, and the Liquor Fund. The State Legal 12 <br />Compliance Report is required by Minnesota Statute §6.65. The OSA audit guide covers seven 13 <br />categories: contracting and bidding, deposits and investments, conflicts of interest, public 14 <br />indebtedness, claims and disbursements, other miscellaneous provisions and tax increment 15 <br />provisions. There was one finding of noncompliance. Ms. Moeller noted consideration of 16 <br />internal control as a basis for designing control there were no findings for 2018. The required 17 <br />communications are any change in accounting policies used (Implemented GASB 75 – 18 <br />Accounting and Financial Reporting for Post-Employment Benefits Other Than Pensions 19 <br />(OPEB)), difficulties encountered in performing the audit (none), and disagreements with 20 <br />management (none). The minimum fund balance policy was met. There are seven GASBs not 21 <br />implemented by the City. She thanked Shelly and all who assisted with the audit. 22 <br /> 23 <br />Councilmember Stille thanked Ms. Moeller. The audit makes sure the numbers are correctly 24 <br />reported. The citizens can feel good about the City’s financials. 25 <br /> 26 <br />Mayor Faust stated the audit process has gotten better every year and when Ms. Moeller talks 27 <br />about management she is referring to the City Manager and City Finance Director. 28 <br /> 29 <br />Motion by Councilmember Gray, seconded by Councilmember Jenson, to accept the 2018 Audit 30 <br />as presented. 31 <br /> 32 <br />Motion carried 5-0. 33 <br /> 34 <br />B. Resolution 19-055; a Resolution Authorizing Issuance, Awarding Sale, Prescribing the 35 <br />Form and Details and Providing for the Payment of $2,480,000 General Obligation 36 <br />Bonds, Series 2019A. 37 <br /> 38 <br />Ms. Stacie Kvilvang, Ehlers & Associates, presented a summary of the bonds that were sold to 39 <br />finance various storm water and flood improvements as well as the sidewalks and utilities along 40 <br />County Road C. The AA rating with stable outlook was affirmed by Standard and Poors. 41 <br />Northland Securities was the low bidder with a true interest cost of 2.0756% 42 <br /> 43 <br />Councilmember Stille referred to the 10-year treasury bond and borrowing costs are low. 44 <br /> 45 <br />6