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HomeMy WebLinkAbout2016 06-06 CCM Joint Work Session with Financial CommissionMINUTES 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 6, 2016 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, Assistant Finance Director Andrew Splinter, and Deputy City Clerk Rozlyn Tousignant. Councilmember Kris Lawrence-Anderson was absent and excused. Others present were Financial Commissioners Anna Burke, Rex Newman, Dan Schueller, and Dean Van Der Werf. Financial Commissioners Jeffrey Dobbs and Teneshia Kragness were absent and excused; James Schulz was absent and unexcused. 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, General Fund Financial Position, General Fund Revenue by 06/06/16 -1- DRAFT Source, General Fund Expenditures by Function, Enterprise Funds Change in Financial Position, Water Fund, Sanitary Sewer Fund, Liquor Fund, 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 ended his presentation by explaining the City's net position which has increased nearly $5 million in 2016. There was discussion regarding the City's implementation of Government Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions. (25 minutes) STAFF OVERVIEW OF COMPREHENSIVE ANNUAL FINANCIAL REPORT Finance Director Reinhardt reviewed the 2015 Comprehensive Annual Financial Report (CAFR) and pointed out that there is a positive General Fund Operating Budget of $1,059,597; the General Fund Assigned and Unassigned Fund Balance represents 56.1 percent of next year's budgeted expenditures; and there is a fund balance >52 percent that will be transferred to the Capital Projects Fund ($804,815). 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. Discussion was held in regards to the fund balance of 52%, turnover/vacancies of City staff positions, bonding for the street projects, and the FRA & PERA pension funds. MISCELLANEOUS There were no miscellaneous items discussed. ADJOURNMENT Councilmember Myszkowski moved and Councilmember Ryan seconded to adjourn the Work Session at 7:45 p.m. Motion passed unanimously. 06/06/16 -2- DRAFT 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 full, 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 6, 2016. 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 27, 2016, Regular Session. City Clerk Mayor 06/06/16 -3-