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2021-09-08 CC Packet
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2021-09-08 CC Packet
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City of Centerville <br />Council Meeting Minutes <br />June 23, 2021 <br />1. Add Check #33849 and Voided Check #33839. <br />2. ptance of CenterPoint Energy Grant. <br /> <br />Motion by Council Member Koski, seconded by Council Member Lakso, to Approve the <br />Agenda as Amended. Mayor Love and Council Members King, Koski, Lakso & Mosher <br />voted in favor. Motion carried. <br />IV. APPOINTMENTS/PRESENTATIONS <br />1. <br />Brad Falteysek, Abdo, Eick & Meyer, presented the financial report, required management <br />communications, and audit insights. He provided a PowerPoint presentation to review the audit. <br />As part of the presentation, overall fund balances, revenues, taxes and tax rate information were <br />reviewed including a comparison of Centerville with other cities in the State. It was noted that <br />Centerville has been in compliance for the last 5 years. <br />Mr. Falteysek reported one item was found incompliant. He stated that a bill for services received <br />in 2020 was expensed in 2021 rather than 2020. He informed Council that the amount was $66,000 <br />and associated with the remodel of City Hall. He report that there was no illegal activity on behalf <br />of the City. During the course of the presentation, it was mentioned for a city to be in good <br />financial standing, it would need to maintain a general reserve fund balance of approximately 40- <br />budget. At end of year 2020, Centerville was at <br />63% of their general fund balance, which is above the minimum requirement. Revenues came in <br />mostly from taxes, and tax levies. It was reported that for the last 5 years, Centerville has been <br />above the minimum reserve requirement going into the following year. In total, the City ended <br />with $1.6 million in reserve funds. <br />Council Member Koski questioned why the garbage and recycling funds have a deficit. Mr. <br />Falteysek stated it was due to startup costs. Administrator Statz explained that this account is a <br />pass through where funds are received from utility billing and then paid to the waste hauler. Mayor <br />Love stated the City decided to attempt to save residents fees in their garbage charges by assuming <br />the billing on behalf of the hauler. Mayor Love proposed to offset the deficit with funding to clear <br />the account. <br />Mr. Falteysek noted that Centerville, in a tax trend study with other cities up to 10,000 in <br />population, is right in the middle when compared to other cities. Administrator Statz questioned <br />why such a drop in per capita tax in 2019. Mr. Falteysek suggested it may have been due to the <br />City Hall city street project but he could not be certain. <br />Council Member Mosher wondered why the dip in the tax rate. Finance Director DeJong <br />commented it is due to an increased tax base over the years. It is also related to commercial <br />development which provides a more significant impact on taxes. Administrator Statz stated bottom <br />line is that taxes are going down based on tax base not tax per capita. <br /> <br />Page 3 of 7 <br /> <br />
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