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HomeMy WebLinkAbout2017 06-05 CCM Joint Session with Financial Commission 06/05/17 -1- 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 5, 2017 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 Marquita Butler, April Graves, and Dan Ryan. Also present: City Manager Curt Boganey, Deputy City Manager Reggie Edwards, MMKR’s James Eichten, 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, Jeffrey Dobbs, Tia Hedenland, Dan Schueller, Abate Terefe and Dean Van Der Werf. Financial Commissioners Teneshia Kragness and Rex Newman were absent and unexcused. APPROVAL OF AGENDA Councilmember Graves moved and Councilmember Ryan 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 • State Laws and Regulations – Compliant • Single Audit of Federal Awards – Not required for calendar 2016 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 06/05/17 -2- Taxable Market Values, Tax Rates, Governmental Funds Revenue per Capita, Governmental Funds Expenditures per Capita, 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, and Earle Brown Heritage Center Fund. He also recapped that the City had received a clean opinion on financial statements; and that the City is continuing with ongoing assessment of financial projections and results including General, Other Operational, and Enterprise Fund Activities. STAFF OVERVIEW OF COMPREHENSIVE ANNUAL FINANCIAL REPORT Finance Director Reinhardt reviewed the 2016 Comprehensive Annual Financial Report (CAFR) and pointed out that there is a positive General Fund Operating Budget of $1,074,795; the General Fund Assigned and Unassigned Fund Balance represents 55.5 percent of next year’s budgeted expenditures; and there is a fund balance >52 percent that will be transferred to the Capital Projects Fund ($715,544). 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 Councilmember Graves asked if the City’s General Fund by Expenditures, particularly Public Safety, was typical among other cities. Mr. Eichten stated that it is fairly typical to see the similar ratios. Mr. Boganey responded that the nominal amount shows a significant variance between cities but the relative costs per capita are very similar. Councilmember Butler asked a question regarding whether the information used from the current year’s budget is used to set the following year’s budget. Mr. Boganey stated that each budget year stands on its own, previous years’ results are used to inform budget making for the succeeding year. Commissioner Burke asked about the Curbside Pickup program. Mr. Boganey stated that the fee has been added into the utility billing to cover the costs of the program. Councilmember Ryan addressed concerns that the City will have significant costs in the future regarding sewer fund rates. Mr. Boganey handed out media training information to the City Council. The training will be three days regarding speaking skills in front of the camera. The training will be approximately 45 minutes per session. Council expressed interest in the training. ADJOURNMENT Councilmember Graves moved and Councilmember Ryan seconded to adjourn the Work Session at 8:30 p.m. Motion passed unanimously.