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City of Centerville <br />Council Meeting Minutes <br />June 28, 2017 <br /> <br />Mr. McDonald reviewed the Management Letter, General Fund Balances including <br />Revenue and Expenditures over a three (3) year comparison, Special Revenue and <br />Capital Project Funds along with Debt Service Funds. Mr. McDonald stated that new <br />accounting practices have been implemented per regulatory agencies. <br /> <br />Mr. McDonald stated that on an annual basis, ABDO Eick & Meyers notes that the City <br />has minimal Staff which allows for minimal segregation of duties, however, is well <br />within the guidelines, is in the forefront of their auditing procedures and is focused on <br />while providing their services. He stated that the General Fund balance was healthy and <br />was 56% of the budget for 2016 which is within regulatory requirements and General <br />Finance Officers Association Best Practices of 30-50%. He also stated that these figures <br />are utilized to achieve the City’s bond rating along with consistencies of meeting these <br />standards. <br /> <br />Mr. McDonald reported that revenues experienced a $170,981 variance with the final <br />budget primarily due to licenses and permits and expenditures experienced a deficit of <br />$29,738 primarily due to parks and recreation being over budget. He reviewed Special <br />Revenue Funds and Capital Projects Funds stating that the Cable Fund increased by <br />$7,502 over 2015 and Capital Project Funds also increased by $129,597 over 2015. Mr. <br />McDonald advised Council to annually evaluate projects within this category to <br />determine whether the fund should be closed or if additional funding sources would be <br />needed for deficits. He reviewed the City’s bonds, Enterprise Fund Balances: <br />$1,643,503 Water, $1,528,554 Sewer, and $162,713 Storm Water. He stated that the City <br />is in line with peer groups of similar sizes communities. He concluded that overall all <br />major operating funds had healthy cash reserves and trending in a good direction. <br /> <br />Mr. McDonald thanked Finance Director Paulseth for her diligence and oversight of the <br />City’s accounting affairs along with all preparations for the audit. <br /> <br />Brief discussion took place regarding depreciation, useful life of infrastructure <br />(waterlines, sewer mains, streets, buildings and equipment), the City being within range <br />of expenditures being 30-50% of fund balance and within acceptable range. <br /> <br />Mayor Paar thanked staff and the Public Works Department for their due diligence in <br />spending and accounting responsibilities. <br /> <br /> <br />III.PUBLIC HEARING <br /> <br />1. Reorganization of EDA <br />a. Res. #17-010 – Resolution Enabling the Establishment of the <br />Economic Development Authority of the City of Centerville, <br />Minnesota, Pursuant to Minnesota Statutes, Sections 469.090 <br />Through 469.1082, as Amended <br /> <br />Attorney Glaser stated that the City is considering forming a board that would enable the <br />City to have new tools to assist businesses with an array of products such as low interest <br />Page 2 of 6 <br /> <br /> <br />