HomeMy WebLinkAbout2004 07-15 FCM0 3r
Financial Commission
Regular Meeting Minutes
15 July 2004
1. Call to Order
The meeting was called to order at 7:00 PM
2. Roll Call
Members Present: Chair Escher and Commissioners Elftmann, Nemec, Shogren-
Smith, Peterson and Councilmember Carmody. Commissioner Hruska was
excused.
Others Present: City Manager McCauley and Director of Fiscal & Support
Services Jordet
David Mol, Partner with the accounting firm of HLB Tautges Redpath, LLC was
. present as an invited guest.
3. Aaenda
Mr. Elftmann proposed and Mr. Nemec seconded a motion to adopt the agenda.
With all voting in favor, the motion was adopted.
4. Minutes
Mr. Peterson proposed and Mr. Elftmann seconded a motion adopting the
minutes of the 29 April 2004 meeting as presented. With all voting in favor, the
motion was adopted.
5. Comprehensive Annual Financial Report
Mr. McCauley introduced Mr. Mol. Mr. Mol reviewed the presentation made to
the City Council about the Comprehensive Annual Financial Report for the year
ended 31 December 2003. Highlights of the review included an explanation of
the changes required by GASB 34, a clean statement of legal compliance with
State of Minnesota requirements (meaning there were not reportable conditions
or situations found), a clean report on internal control practices and procedures,
a summary statement of all funds activities showing total net assets of just over
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• $ 75 million, and a suggestion that the City review its working capital and fund
balance/cash reserve policies for possible increase of reserve funding.
The floor was then opened for questions. Questions included topics such as tax
increment financing deficits and cash flows, what is included in fund balance,
liquor transfer regulations (fixed at $ 75,000 by policy), formalizing interfund
loans, reduction of liquor stores, and what amount of increase should be
encouraged in the General Fund reserves.
6. Council Member Liaison Report
Council Member Carmody brought a request from the Council made by Council
Member Niesen that the Financial Commission consider expanding the scope of
the comparisons used to determine comparative city council compensation. This
results form discussion at a City Council meeting where additional cities were
suggested for the bi-annual comparison.
During discussion, a review of the establishment of the current policy was
undertaken. It was established that the original policy for city council
compensation review was submitted to the City Council in January of 1994. In
1998, criteria for making the comparison of Council compensation practices were
• established.
Ms. Shogren-Smith proposed and Mr. Peterson seconded a motion to reaffirm the
methodology and principles used by the Financial Commission to form the basis
for the policy recommendations made to and adopted by the City Council in 1994
and 1998. With all voting in favor, the motion was adopted.
7. 2005 Budaet
Mr. McCauley reviewed some of the circumstances affecting formulation of the
2005 budget. The major factor is the loss of an additional $ 300,000 in LGA.
The next joint meeting of the Commission and the City Council is scheduled for
16 August 2004. A suggestion was made that either the Chair of the
Commission and the Mayor co-chair the meeting or that the ground rules for
discussion be clearly established at the beginning to keep discussion focused on
appropriate topics. The meeting will be held at 6:30 PM in the
Council/Commission Conference Room. The most important topic of be decided
at that meeting will be the amount of the preliminary levy to be adopted in
September 2004.
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• 8. RFP for Financial Advisor
Mr. Elftmann and Ms. Shogren-Smith were volunteered to participate in the
interview process for the Financial Advisor process.
9. Reports
Robert Milne has resigned from the Financial Commission. Applications wil be
taken through 28 July 2004 and the Council will appoint a replacement as soon
after the closing as is practicable.
Sharon Kutzke, Staff Accountant for the past five years, has been appointed
Assistant Finance Director. A search for a replacement Accountant is underway.
10. Other Business
Chair Escher requested that the Financial Policies packet be finished and
distributed.
11. Adjournment
• Mr. Nemec proposed and Mr. Elftmann seconded adjournment of the meeting.
Chair Escher adjourned the meting at 8:48 PM.
Donn Escher, Chairperson
ATTEST:
Daniel Jordet, Director of F & SS
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