2020.07.28 CC Minutes - Laserfiche WebLink

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July 28, 2020 Page 3 of 6 Public Hearing None. Council Business 1. Consider 2nd Quarter 2020 Interim Financial Statements. Motion by Councilmember Jacobsen, seconded by Councilmember Fynewever to accept the Second Quarter 2020 Interim Financial Statements. City Manager Massopust indicated Interim Finance Director Smith would be presenting this item to the Council. He reported the City had received CARES Act dollars and these funds were not reflected in the 2nd Quarter financials but would be used to assist in augmenting expenses due to COVID-19 in the 3rd Quarter for the City of New Brighton. Interim Finance Director Smith stated in an effort to keep the Council informed on the City’s fiscal condition, a comparison of the 2020 revenues and expenditures for the period ending June 30, 2020 (unaudited) was reviewed. The comparison shown includes those programs and services that constitute the City’s core functions for which changes in financial trends can have a near‐term impact on the ability to maintain current service levels. Programs such as debt service and tax increment financing which are governed by pre‐existing obligations and restricted revenues are not shown. In addition, expenditures in the City’s Fleet and Non‐Fleet programs are not shown as these expenditures are specifically tied to pre‐funded asset replacement funds. These replacement funds are not susceptible to year‐to‐year fluctuations and therefore annual reviews are considered sufficient. It should be noted that many of the City’s revenue streams such as property taxes, are non‐recurring or are received intermittently throughout the year. This can result in wide revenue fluctuations from month to month. In addition, some of the City’s expenditures such as new capital purchases are also non‐recurring and subject to wide fluctuations. To accommodate these differences, a comparison is made to historical results to identify whether any new trends exist. Staff reviewed the City’s 2nd Quarter financials in further detail with the Council, noting the balance in the General Fund and City utility funds. Councilmember Jacobsen stated the only item that caught his eye was the Sewer Utility Fund. He requested further comment on this item. Interim Finance Director Smith reported staff was not concerned about the balance in this fund and noted staff would have enough funds to cover expenses for the second part of the year. Community Assets and Development Director Schlichting commented further on the projects the City would be completing in 2020. He noted the large sewer project being completed within Midtown Village would be reimbursed by TIF. Mayor Johnson anticipated the 3rd Quarter would look different. She requested an update on how the $1.7 million in CARES Act dollars would be utilized by the City. City Manager Massopust reported staff would be making a formal presentation to the Council in August regarding the CARES Act funding. He noted these dollars could be used for COVID-19 capital expenditures. He indicated staff was working to document these expenses. He commented a grant program was also being established that would assist local businesses. He reported staff was working with Open to Business to facilitate this grant program. Councilmember Jacobsen stated he appreciated the fact that the City’s finances were not looking quite as dire as originally anticipated. City Manager Massopust stated this was a fair statement and commented most revenue generating services were able to open earlier than previously projected. 4 Ayes, 0 Nays-Motion Carried Public Hearing Council Business 1. Consider 2nd Quarter 2020 Interim Financial Statements.