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HomeMy WebLinkAbout2015 06-01 CCM Joint Work Session with Financial Commission MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA JOINT WORK SESSION WITH FINANCIAL COMMISSION JUNE 1, 2015 CITY HALL - COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council met in Joint Work Session with the Financial Commission and the session was called to order by Mayor Tim Willson at 6:30 p.m. ROLL CALL Mayor Tim Willson and Councilmembers April Graves, Lin Myszkowski, and Dan Ryan. Also present: City Manager Curt Boganey, Finance Director Nate Reinhardt, and Deputy City Clerk Maria Rosenbaum. Councilmember Kris Lawrence-Anderson was absent and excused. Others present were Financial Commissioners Anna Burke,Steve Landis, and Dean Van Der Werf. APPROVAL OF AGENDA Councilmember Ryan moved and Councilmember Myszkowski seconded to approve this evening's agenda. Motion passed unanimously. PRESENTATION OF AUDITOR REPORT AND MANAGEMENT LETTER James Eichten, CPA, partner with Malloy, Montague, Karnowski, Radosovich, & Company (MMKR), the City's Auditing Firm, was introduced to review the City's Audit Report and Management Letter. Mr. Eichten outlined the auditor's role and the Audit Opinions and Findings which included the following: • Financial Report—Unmodified or Clean Opinion • Internal Controls Over Financial Reporting—No Findings • Single Audit of Federal Awards—No Findings • Legal Compliance Audit Findings—No Findings Mr. Eichten reviewed the Management Report prepared by MMKR and pointed out highlights relating to the Audit Summary and Governmental Funds Overview along with information on Taxable Market Values, Tax Rates, Governmental Funds Revenue per Capita, Governmental Funds Expenditures per Capita, Governmental Funds Change in Fund Balance, General Fund Financial Position, General Fund Revenue by Source, General Fund Expenditures by Function, Enterprise Funds Change in Financial Position, Water Fund, Sanitary Sewer Fund, Liquor Fund, 06/01/15 4- and Earle Brown Heritage Center Fund. He also recapped that the City had received a clean opinion on financial statements; single audit of Federal Awards, no findings reported, and that the City is continuing with ongoing assessment of financial projections and results including General, Other Operational, and Enterprise Fund Activities. Mr. Eichten discussed that with the competitive liquor market the profit margins had fluctuated and due to competitiveness of this market many cities are experiencing a decline in profits; and this would be a fund to continue to watch. Mr. Eichten discussed future GASB No. 68 and Fire Relief Auditing that will be required and incorporated into next year's audit. STAFF OVERVIEW OF COMPREHENSIVE ANNUAL FINANCIAL REPORT Finance Director Reinhardt reviewed the 2014 Comprehensive Annual Financial Report (CAFR) and pointed out that there is a positive Operating Budget of$1,491,492; a total decrease in Fund Balance of$1,362,632, as a result of a transfer to the Capital Improvements Fund of$2,754,124; the General Fund Assigned and Unassigned Fund Balance represents 56.7 percent of next year's budgeted expenditures; and there is a fund balance >52 percent that will be transferred to the Capital Projects Fund ($908,761). He also outlined financial highlights in each of the following sections: General Fund Revenues, General Fund Expenditures, Enterprise Funds, Utility Funds, and other miscellaneous items. MISCELLANEOUS There were no miscellaneous items discussed. ADJOURNMENT Councilmember Myszkowski moved and Councilmember Ryan seconded to adjourn the Work Session at 7:33 p.m. Motion passed unanimously. 06/01/15 -2- STATE OF MINNESOTA) COUNTY OF HENNEPIN) ss. Certification of Minutes CITY OF BROOKLYN CENTER) The undersigned, being the duly qualified and appointed City Clerk of the City of Brooklyn Center, Minnesota, certifies: 1. That attached hereto is a fu11, true, and complete transcript of the minutes of the City Council from the City of Brooklyn Center Joint Work Session with Financial Commission held on June 1,2015. 2. That said meeting was held pursuant to due call and notice thereof and was duly held at Brooklyn Center City Hall. 3. That the City Council adopted said minutes at its June 8, 2015, Regular Session. City Clerk Mayor 06/01/15 -3-