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Regular City Council Meeting Monday, June 4, 2018 Page 4 range of$125,000 to $150,000 on engineering work, and that will be paid by the Watershed District. Mayor Roe thanked Mr. Axtell for his update and report included in the Council packet. He suggested Watershed staff consider enlarging the maps for next time, for easier readability. b. Receive Comprehensive Annual Financial Report, Auditor Communication Letter, and Reports on Compliance for Fiscal Year Ending December 31, 2017 Assistant Finance Director Schirmacher briefly highlighted this item as detailed in the RCA and related attachments dated June 4, 2018. He noted that State Statute requires an annual presentation of the City's year-end financial report by an inde- pendent auditor. David Mol, with the firm of Redpath and Company, is present to provide an overview of the Annual Reports, as well as the audit process and any required disclosures or findings. David Mol, Redpath and Company, stated the objective of an audit is to ensure the financial statements are free of material misstatement and are presented in ac- cordance with accounting standards. An unmodified or "clean" opinion was is- sued for the 2017 financial statements. Additionally, no items were reported re- garding Internal Control or regarding Compliance. He highlighted the General Fund, Special Revenue, Debt Service, and Capital Projects. He noted the General Fund balance was just under 40% at the end of 2017, which met the Council's goal of 35% to 45% of expenditures for cash flow purposes. He illustrated the need for a general fund cash flow at the end of the year, as the balance is tied to the biannual property tax payments. He also highlighted the Water Utility fund, Sewer Utility fund, Golf Course fund, and Storm Drainage fund. He summarized for the Council that there were good results on the audit. Mayor Roe recalled that the Council had made an intentional decision on the use of deficit spending, because the City was its midpoint of target on the funds, so rather than increasing the revenues, the Council decided to use existing funds to pay for some of operating expenses. Mayor Roe offered an opportunity for public comment, with no one coming for- ward. Etten moved, McGehee seconded, acceptance of the 2017 Annual Financial Re- ports (Attachment A). Roll Call Ayes: Willmus, Laliberte, Etten, McGehee and Roe. Nays: None.