05-28-2013 - Laserfiche WebLink

Home Browse Search

May 28, 2013 Page 5 of 8 City Manager Lotter reported Finance Director Maiers and Steve Wischmann from KDV were present this evening to discuss the City's Annual Financial Report for the year ending December 31, 2012. Finance Director Maiers provided comment on the audit with the Council. He noted the General Fund ended up with a favorable variance of $316,654 at the end of 2012. He then discussed the balances of the golf course and utility fiords. Steve Wischmann, KDV, thanked the Council for their time this evening. He reviewed the audit results in detail with the Council and noted the Comprehensive Annual Financial Report (CAFR) had been reviewed by both himself and Finance Director Maiers. He commended the City's Finance Department for their efficient and effective wont. He reported an unqualified or clean opinion was granted to the City, which was the highest level of financial assurance. He added that no compliance findings were found for the previous year. His only finding for 2012 was how the City segregated financial duties. The City's General Fund and net position for all funds was reviewed. He explained the City has made significant progress in paying down its outstanding long -term debt over the past five years. He then asked for comments or questions from the Council. Mayor Jacobsen thanked Mr. Wischmann and the entire Finance Department for the great work conducted on behalf of the City of New Brighton, He stated it was due to Staff s efforts that the City was continually improving its financial position. Councilmember Jacobsen thanked KDV for assisting the City with their audit each year He also thanked the Financial Department and Finance Director Maiers for their great work. Councilmember Burg was pleased to see that the Council's efforts to curb spending and reduce debt were paying off. Finance Director Maiers appreciated the Council's kind words and then passed along his appreciation to Assistant Finance Director Mannetter. Motion by Councilmember Jacobsen, seconded by Councilmember Samuelson to Accept the Comprehensive Annual Financial Report for the year ending December 31, 2012, and the auditors' Communications Letter and their Reports on Compliance with Government Auditing Standards and Legal Compliance. 4 Ayes, 0 Nays -Motion Carried 2. Consideration of Resolution Authorizing a Transfer from General Fund and Amending the 2013 General Fund Budgets for the Transfer. Report No. 13 -126. Resolution No. 13 -039. City Manager Lotter stated Finance Director Maiers was requesting a transfer from the General Fund this evening. Finance Director Maiers stated the Fund Balance of the General Fund was above its targeted amount as of December 31, 2012 by $1,452,100. He indicated transferring out $290,400, or 20% of the amount above the targeted amount would be consistent with the City's Fund Balance Policy. These funds would be transferred to the Closed Bond Fund and would provide an opportunity to replenish reserves consistent with the City's long -term financial plans. These interest earned from the reserves were committed to supplemental financing for the retirement of outstanding debt principal, interest and related expenditures. He explained the only fimding source for the Closed Bond Fund was interest earnings. The Fund Balance Policy was further discussed and Staff recommended the Council approve the fund transfer. Councilmember Jacobsen asked how much interest the City earned on an annual basis in the Closed Bond Fund. Finance Director Maiers estimated this to be $50,000 per year. He indicated interest rates were extremely low at this time. Mayor Jacobsen thanked Finance Director Maiers for providing Council with the recommended fiord transfer. He supported Staffs recommendation as it provided an opportunity to further stabilize the Closed 2 Consideration of Resolution Audwirizing a TransferfionlGe oral Fund and Amending the 2013 General Fund Budgets for the Transfe-. Report No. 13 -126. Resolution No. 13-039.