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