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Regular City Council Meeting Monday,May 16,2011 Page 7 receipt of the payment. Mr. Miller questioned if it was worth the additional time and expense for the purpose of removing this audit finding, with management staff making the value judgment that it was not at this point; preferring that state statute be updated to take the situation into consideration, since the current statute is still applicable to paper payments, not modern procurement systems. Mr. Eichten continued review of the Management report, page 2 and beyond, re- lated to follow-up on prior year findings; Governmental Accounting Standards Board (GASB) procedures implemented by the City; and the importance of ap- propriate internal controls by providing adequate funding for the City's Finance Department to perform it's oversight functions. Mr. Eichten noted the need to put the contingency plan for the Information Tech- nology Division into written format, as developed and outlined. Mr. Eichten reviewed the City's revenue and expenditure trends compared to pre- vious years; declining taxable market values and impacts to the City's tax base and governmental fund revenue per capita; one-time impacts of the Decertifica- tion of a Tax Increment Financing (TIF) District; funds received from federal and county grants, rather than state grants; and the City's historic and continuingly healthy debt ratios. Mayor Roe, for the benefit of the public, reviewed the TIF District decertification process, with excess TIF funds paid back to the County, in this case of approx- imately $7 million, with Ramsey County then repaying the City of Roseville their portion of approximately $1.2 million under property taxes; and other taxing ju- risdictions, such as the two (2) area school districts also receiving their portion of those funds. Councilmember Pust returned to the meeting at this time, approximately 7:05 p.m. In reviewing the City's General Fund financial position, Mr. Eichten opined that the City had done a great job in addressing its fund balance policies; with the per- centage of expenditures at 45.1% based on actual data, not policy data, even though that was less than their stated policy of retaining 50% reserve fund bal- ances. Mr. Eichten noted that the City's General Fund had finished under budget, which was exceptional in terms of projections, with those projections rarely seen that close to actual budgets of that size; and important information for the City to take into account as they made their decisions. Mr. Eichten reviewed the financial trends (page 15) of the City's enterprise funds and overall improvements, while minimal, but trending favorably.