2023 Vol 17, Issue 4 August Gem Lake News

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Gem Lake News Page 2 of 6 Gem Lake 2022 Audit Completed (Continued from page 1) MMKR concluded that there were no transactions entered into by the City for the year for which there was a lack of authoritative guidance or consensus. Financial statement disclosures were considered neutral, consistent and clear. MMKR concluded that there were no misstatements detected as a result of audit procedures that were material, either individually or in the aggregate, to each financial statement taken as a whole. Here are some findings regarding Gem Lake finances: • The City’s taxable market value increased 11.4% for taxes payable in 2021 and 2.2% for taxes payable in 2022. Tax capacity is considered the actual base available for taxation. It is calculated by applying the state’s property classification system to each property’s market value. The City’s tax capacity increased 14.3% in 2021 and decreased 0.4% in 2022. The improvement in tax capacity values contributed to the decrease in the City’s average tax rate. • The City’s general fund accounts for the financial activity of the basic services provided to the community. It includes municipal operations, police and fire protection, building inspection, streets and highway maintenance, etc. • The City’s General Fund case and investments balance at December 31, 2022 was $379,587, an increase of $66,567 from the previous year. The total fund balance increased $57,011 in 2022, as compared to a balanced budget projected in the final budget. • The City has generally been able to maintain healthy cash and fund balance levels, which allows the City to properly meet cash needs, maintain the City’s bond rating and navigate through fluctuations in state funding for cities in recent years. • Property taxes comprise about 88.8% of the fund’s total annual revenue. Approximately half of these revenues are received by the City in July and the rest in December. Consequently, the City needs to have adequate cash reserves to finance its everyday operations between these payments. • The City’s unassigned General Fund balance at the end of the 2022 fiscal year represents approximately 59% of annual expenditures, based on 2022 levels. • General Fund revenue for 2022 was $541,680, which was $18,402 (3.5%) more than the budget. Total General Fund revenue for 2022 was $11,688 (2.2%) higher than the previous year. Taxes increased $27,330, due to an increase in public safety and franchise fees. Intergovernmental revenues were $30,209 less than the prior year, due to the City not qualifying for the small cities assistance funding. • General Fund expenditures for 2022 were $464,669, which was $38,609 (7.7%) under budget. Some of the savings came as a result of Public Works expenditures being $71,336 under budget, due to savings on snow plowing, road salt and tree trimming. A complete copy of the audit is available at Heritage Hall. Scholarship Awarded (Continued from page 1) Despite her busy schedule, Pratt graduated with a GPA (Grade Point Average) of 4.39 and was ranked number five in White Bear Lake Area High School’s senior class of 500 students. Pratt earned academic awards for being an AP Scholar, AP Scholar with Distinction and many other accolades. “Kristina Pratt is one of the top students I’ve encountered in my 16 years as a school counselor,” according to White Bear school counselor Lori Soler. “She is a stellar student with an impressive GPA and is involved in many school and community activities. She has the motivation and skills to do well and would be very deserving of this scholarship.” One of her teachers, Matthew Danielson, had the following to say about her abilities and qualifications. “I have come to know Kristina Pratt in my Advanced Placement Calculus BC and Multivariable Calculus/AP Statistics courses. During these courses, she has demonstrated, in and out of the classroom, many of the qualities it takes to become a successful college student. These qualities include independence, determination and her math abilities. Kristina is one of the most gifted students mathematically I have encountered.” Pratt plans to study Journalism at the University of Minnesota, beginning this fall. Congratulations Kristina Pratt!