HomeMy WebLinkAboutAuditor's Council Presentation April 10, 2001 1
City of
Oak Park Heights,
Minnesota
Council Presentation
April 10, 2001
HL B TA UTGES REDPA TH, LTD.
Year End Reports
I Required
1
Comprehensive Annual
Financial Report
• City's financial statements
I •Independent auditor reports on
the fair presentation of the
financial statements
• "Clean opinion" on the 2000
financial statements
3
State Legal Compliance
Report
• Required by Minnesota Statute
§6.65
I OSA established a task force to
develop audit guide for legal
compliance
• Audit guide covers five categories
1) contracting and bidding
2) deposits and investments
3) conflicts of interest
4) public indebtedness
5) claims and disbursement
• No compliance findings for 2000
based on items tested
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1
Report on Internal
Control
• Required by audit standards
I •Based on inquiries and
observations
• Identifies reportable conditions
• Reportable condition defined as
"Significant deficiencies in the design or
operation of the internal control over
financial reporting that would adversely
affect the City's ability to record, process,
summarize, and report financial data"
• No reportable conditions noted
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Management Report
• Summary:
— General Fund:
• Fund balance increased $89,000 to
$1,280,000 as a result of positive
I budget variances in both revenues
and expenditures
• Fund balance at December 31, 2000
was not sufficient to fulfill all
reserve requirements -the
contingency reserve was $87,000
under amount desired by policy
• We recommend the City consider
amending the contingent employee
reserve component
• We recommend the City consider an
alternate approach to funding of
General Fund capital outlay
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1
Management Report
• Summary:
— Special Revenue Funds
• Economic Development fund
This fund does not have the
I resources to make full repayment of
it's $260,000 interfund loan. We
recommend the City consider
forgiving approximately $195,000 of
the loan payable
• Forfeiture and Seizure Fund had a
fund balance of $25,000 at year end
Management Report
— Debt Service Funds:
• Three bond issues outstanding
totaling $3 million.
• Storm Sewer Bonds of 1992 -Final
payment in 2000. City was able to
I cancel the 2000 tax levy ($25,000)
• Water and Sewer Bonds of 1993 -
this bond issue is funded by
transfers from the Connection
Charge Fund. Existing connection
charges should be sufficient to fund
debt service requirements
• Improvement Bonds of 1995 -this
bond issue is projected to have a
surplus of $35,000 at final bond
maturity (2006) based upon levying
the scheduled property taxes
a
Management Report
— Debt Service Funds:
• Improvement Bonds of 1998 -this
bond issue matures in 2014. Debt
service is funded by special
assessments and connection charges.
I Existing connection charges should
be sufficient to fund debt service
requirements.
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Management Report
— Capital Project Funds:
• Capital Revolving Fund - fund
balance increased by $96,000 during
the year. Assets of this fund at
December 31, 2000 consisted of:
— cash $178,000
— interfund loan - ?? 260
— storm sewer repay 20,000
— assessments 241,000
• total $699,000
• Connection Charge Funds - a
summary is as follows:
Sanitary Water Storm
Sewer Works Water Total
Fund balance - December 31, 2000 $362,829 $280,662 $541,815 $1,185,306
Future connection charges 285,981 492,432 623,896 1,402,309
Subtotal 648,810 773,094 1,165,711 2,587,615
Debt service commitments:
Bonds of 1993 (75,000) (450,000) - (525,000)
Bonds of 1998 (357,035) (123,725) (226,240) (707,000)
Repayment commitment - - 20,000 20,000
Uncommitted $216,775 $199,369 $959,471 $1,375,615
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Management Report
— Capital Project Funds,:
• Park Development Fund - fund
balance decreased by $83,000
during the year. The fund balance
was $302,000 at December 31,
I 2000. Expenditures for the year
included:
— Park signs 16
— Trail paving 30,000
— Valley View bridge 65,000
• total $111,000
• Renewal and Replacement Fund -
fund balance increased by $148,000
during the year. The fund balance
was $1.6 million at December 31,
2000. Expenditures for the year
included $59,000 for Deep Well # 3.
Management Report
— Capital Proiect Funds,:
• Street Reconstruction Fund - fund
balance was $335,000 at December
31, 2000. These monies will
provide partial financing for the next
I phase of street reconstruction.
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Management Report
— Enterprise Funds:
• Water operations reflected operating
income for 2000 of $54,000
• Sewer operations reflected an
I operating loss for 2000 of $91,000
• Sanitation operations are subsidized
by the General fund. The 2000
transfer was $84,000
• Storm Sewer operations reflected an
operating loss for 2000 of $5,000
• Gallons of sewage billed by the City
was less than the amount processed
by MCES. This maybe the result of
— inflow /infiltration
— sump pumps adding the sewer system
— interconnection issues between cities
— incorrect estimates by MCES
— gallon charge for residential customers
may be low
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Management Report
— Other:
• The City experienced an overall
collection rate of 99% for special
assessments in 2000.
• The City has an excellent property
I tax collection rate - 99% for 2000.
• Significant changes in accounting
and financial reporting will be
required by 2004 (GASB 34)
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