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Regular City Council Meeting Monday, May 8, 2023 Page 5 Councilmember Etten wondered how the billing error falls under the City's internal controls because it was not caught in 2021-2022 by City staff, it was caught by an outside consultant. Ms. Peterson explained the City engages professional consultants to help in certain ways and from Redpath's perspective, sometimes there is the internal capacity to do certain things and sometimes the City needs to hire consultants for that. She indicated City staff did not identify it right away, but it was identified through the processes that City staff initiated. Councilmember Schroeder asked if the Council has questions on the audit at a future time should the Council go through the City's Finance Director or should the Council contact Ms. Peterson directly. Ms. Peterson explained she is happy to stand for questions and after the meeting she thought the Council could contact the City Finance Department who can then send the questions her way if there is something that cannot be answered or if the Council would like to talk to her directly about a question, she is open to that as well. Public Comment Mayor Roe offered an opportunity for public comment. Mr. Roger Hess, Wagener Place Mr. Hess assumed the City has about fifty million dollars in investments and he wondered if that was typical for a City of this size. He also wondered if the rate of return is greater than what the City is paying out in interest on the outstanding bonds. He also asked if the internal controls were good enough that if half a million dollars or eight hundred thousand dollars is missing from a fund, the City would know that. Finance Director Michelle Pietrick explained with regard to investments, the City has cash and investments and an overnight sweep account for the checking account, so every night cash is swept out of the checking account into an investment, a mutual fund, to earn interest on absolutely everything the City has. With regard to the earnings, the evaluation is at a point in time, which was December 31, 2022, which resulted in an unrealized loss. The City holds investments until maturity and the annual performance staff has benchmarked at a five year treasury and a ten year treasury, the City was trending below that treasury mark as of yearend. She explained that as investments mature, now that the yield curve on short term has grown significantly,the City is rolling investments into shorter term investments to gain yield and also to position the City going forward so if the market changes the City can gain yield on the investments. With regard to whether the earning exceed