2021-09-08 CC Packet - Laserfiche WebLink

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