HomeMy WebLinkAboutCouncil Presentation April 10, 2001 City of
_ Oak Park Heights,
- Minnesota
- Council Presentation
April 10, 2001
HLB TAUTGES REDPATH, LTD.
_ Year End Reports
_ I Required
z
- 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
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- 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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- 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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- 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
s
- 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
— interfund loan - ?? 260,000
— storm sewer repay 20
— 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 16,000
—Trail paving 30
_ — 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 Project 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 may be 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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