2026 08-18 CC Packet - Laserfiche WebLink

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City of Gem Lake City Council Meeting Minutes July 21, 2026 1 City of Gem Lake City Council Meeting July 21, 2026 Meeting Minutes - REVISED I. Call to Order Mayor Gretchen Artig-Swomley called the meeting to order at 7:00 p.m. II. Call of Roll Mayor Gretchen Artig-Swomley, Councilmembers Len Cacioppo, Ben Johnson, Jim Lindner, and Joshua Patrick were present. Also present: City Attorney Martin Norder, City Treasurer Haley Ranum, and City Clerk Barb Suciu. III. Approve of Agenda and Minutes A. Approve the Agenda for July 21, 2026, City Council meeting. A motion was introduced by Councilmember Lindner to accept the July 21, 2026 agenda, seconded by Councilmember Cacioppo. Motion carried 5-0. B. Approve the Minutes of June 16, 2026, City Council meeting. A motion was introduced by Councilmember Lindner, seconded by Councilmember Cacioppo to approve June 16, 2026, City Council Meeting minutes. Motion carried 5-0. C. Accept the Minutes of July 7, 2026, Planning Commission meeting. A motion was introduced by Councilmember Lindner, seconded by Councilmember Cacioppo to accept July 7, 2026, City Council Meeting minutes. Motion carried 5-0. IV. Special Presentations/Public Hearings A. 2025 Audit Presentation. Jim Eichten, LB Carlson presented the 2025 Gem Lake Audit. The auditor’s role is to determine an opinion on the financial statements and ensure the internal controls and compliance with the financial audit. In the Management Report you will find the financial statements are fairly presented in accordance with accounting principles and were given an unmodified opinion on the basic financial statements. In the testing of the internal controls and compliance, two deficiencies were discovered: The inadequate segregation of duties and audit adjustment on reporting of account payable and utility expenses. In testing the legal compliance, there was one finding of the unclaimed property report that was not filed. The city didn’t have any unclaimed property; however, the report wasn’t filed stating such. The General Fund Balance had an increase of $384,084 due to an increase in revenues and expenditures that were slightly decreased. The percentage of expenditures increased to 143%, where the state auditor’s standard is 50%. The city has two Enterprise Funds: water and sewer funds. The water fund had an operating revenue of $12,397. The sewer fund had an operating loss of $21,365. There is positive equity in this fund, but there is a negative cash flow. A rate study analysis could be completed to obtain a better understanding of the sewer rates. In conclusion, the City was issued a clean opinion on the financial statements, with two findings and one reportable item. The General Fund financial condition is improving, and the city adhered to the general fund balance policy. The net positions of the Enterprise Fund are