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HomeMy WebLinkAbout04-22-2014 Worksession Packet � a Oak Park Heights City Council Worksession Date: Tuesday, April 22, 2014 Location: Oak Park Heights City Hall Council Chambers Time: 6:00 p.m. 1. Call to Order 2. City Council Teambuilding 3. St. Croix River Crossing Update from City Attorney 4. Audit Report—David Mol (full Audit is available in hardcopy in mailbox) 5. Adjourn Staff prepared Agenda for Worksession (If something is missing, please let us know and we will past it) Page 1 of 10 THIS PAGE IS INTENTIONALLY LEFT BLANK Page 2 of 10 City of Oak Park Heights Audit Review Apri122, 2014 David J. Mol, P■ TAUTGES REDPATH,LTD. Copyright n-2014 HLB Tautges Redpath,Ltd. 2x54193 • Certified Public Accountants Reports e • by Auditor • Opinion on the Fair Presentation of the Financial Statements • Report on Internal Controls • Report on Compliance with Minnesota Legal Compliance Audit Guide for Political Subdivisions • Communication to Those Charged with Governance TAUTGES REDPATH, LTD. Copyright 62013 HLB Tautges Redpath,Ltd. 2 Certified Public Accountants Page 3 of 10 0,pinion on Financial • What did we do? — Audited the financial statements, which are the responsibility of management. • How did we do it? GAAS and GAGAS — Plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. • What is the result r' — The financial statements present fairly, in all material respects, the financial position of the City in accordance with accounting standards. ®TAUTGES REDPATH,LTD. Copyright Cc 2014 HLB Tautges Red path,Ltd. lerti r ed PUMCACCauntants Repo,rt Internal • What did we do? — We gained an understanding of internal controls in place and their effectiveness in order to design our audit procedures for expressing an opinion on the financial statements. • Haw did we do it r -- Obtain narratives of controls on each major class of transaction and account balance. — Perform walkthroughs and other tests to determine adherence to controls in place and effectiveness. • What is the result' — One item noted. Prior period adjustment related to Charge for Service revenue ®TAUTGES REDPATH,LTD. i Copyright @,2013 HLB Tautges Red pa th,Ltd. 4 Certified Public Accountants Page 4 of 10 Report on i p Legal Compliance • What did wp, dog" — Followed the audit guide published by the Office of the State Auditor. The guide consists of seven sections: • Depositories of public funds and investments • Conflicts of interest • Public Indebtedness • Contracting bid laws Claims and disbursements Miscellaneous provisions • Tax increment • How did we do it? — Select sample of transactions to test for compliance with statutory provisions. • What is the result? — No items of noncompliance noted. ®TAUTGEs REDPATH, LTD. Copyright*2013 HL3 Tautges Redpath,Ltd. Certified Public Accountants :fhai:rge,d With • Required items to be communicated: — Change in accounting policies used by the City for new accounting standard • GASB Statement No. 65 -- Accounting estimates in the financial statements. • Net OPEB Obligation • Value of Land Held for Resale • Revenue recognition of MNDOT financial assistance — Financial statement misstatements noted during the audit. — No disagreements with management, ®TAUTGEs REDPATH,LTD. Copyright 02013 HL6 Tautges Redpath,Ltd Certified Public Accountants Page 5 of 10 CITY OF OAK PARK HEIGHTS 2005 2013 Percent of Percent of Amount City TotaI Amount ClDiTotaI Real estate, Agricultural $21,284 0.3% $936 0.0% Seasonal 2,803 0.0% 1,254 0.0% Residential homestead 2,188,765 31.6% 1,622,041 15.7% Residential nonhomestead 719,161 10.5% 1,113,682 10.8% Commercial/industrial 2,526,858 36.6% 3,522,058 34.0% Public utility 1,378,249 19.9% 3,990,896 38.6% Railroad 3,360 010% 6,272 0.1% Total real estate 6,840,480 98.9% 10,257,139 99.2% Personal property 78,460 1.1% 95,168 0.8% Total tax capacity $6,918,940 100.0% $10,352,307 100.0% e• ®TAUTGEs REDPATH, LTD. Copyright©2013 HLB Tautges Redpath,Ltd. Certified Public ACCoun tants (D-eese)h, Fund Balance/ Rev E.penditurea Fund Balance/ Net and Other and Other Transfers Net Assets Fund Sources Uses Net Assets 01100 Otl 1 Ganerel $5.090000 $3459000 1668000 $237000 $3670000 5 edal Revenue Funds: 2 Forfeiture a nd Seizure 5.000 SoDO 7.000 3 Economic Oevelo meet 32 Co 4 TIFDistrict4I 106,000 92000 14,000 14,000 Debt S.M.Funds: 5 Bands of 2008 413,000 610 ODO (3,0001 98,000 6 Bands of 2009 136000 1381300 2000 170013 7 G.0.CIP Refunding Bonds of 20120. 8000 109000 117 1170013 Ca hal PrGled Funds: 8 Capital Revolving 19,000 449,000 536,000 106000 209.000 9 Bldll P,.j.b and E u ment R-Nin S.000 93,000 456 ono 358 DDO 1184.000 ID Street Raconstruchan 13 000 305 OO 337 0 19.000 2 492 D00 11 City Hall Im ro ements 9 9000 108,000 12 Park Develo rr-t 2000 55000 S7DDO 756,000 13 Moeller Park 20013 2000 594000 la Renewal and Fe lacement 111,00M 422,000 262000 173,000 4,684,000 15 Storm Sewer Re-[Re].cement 2,000 80,000 78,000 405D00 16 Sanity Sewer Connect.. 2000-------- (2.0001 413000 17 Water Connection 2000 2000 441,000 181 Storm Sewer Connection 3.000 3200 950,000 19 Water Tower Rehabilitation 33,000 40000 73.000 126,000 20 Wall Rehabilitation 13,000 13000 108,000 21 Sewer Rehabilu tlon 2.000 2.000 46.000 Enter rise Funds: 22 water 716,000 470,000 (237,0001 9400 5,043000 23 Sanitary Sewer 831,000 1 696.000 166,000 31 2,912,000 24 Storm Sewer 111000 1 58,000 3,000)1 50,000 71 oc0 25 Total $6,859,000 1 6 7 7 1,0 co 588,0 00 24 263 000 TAUTGEs REDPATH, LTD. Copyright E02013 HLB Tautges Redpath,Ltd. 8 Certified PublicAccountonts Page 6 of 10 General Fund Budget Performance Budget Actual Variance Revenue $4,893,000 $5,090,000 $197,000 Expenditures 3,659,000 3,459,000 200,000 Revenue over expenditures 1,234,000 1,631,000 397,000 Other financing sources(uses): Transfers out (1,868,000) (1,868,000) - Net change in fund balance ($634,000) ($237,000) $397,000 TAUTGEs REDPATH,LTD. Copyright©2013 HL6 Tautges Redpath,Ltd. Certified Public Accountants General Fund Reserves General Fund Balance Constraint December 31, 2012 2013 Nons pen da ble: Prepaid items $4,604 $5,201 Assigned for: Employee benefits 165,000 173,000 Unassigned: Cash flow reserve 2,060,000 2,125,000 General contingency reserve 734,000 777,000 Remaining balance 706,024 434,170 Subtotal-unassigned 3,500,024 3,336,170 Total fund balance $3,669,633 $3,514,371 ®TAUTGEs REDPATH,LTD. Copyright 02013 HL6 Tautges Redpath,Ltd, - Certified Pubfic Accountants Page 7 of 10 General Fund Reserves $3,800,00C General Fund Monthly Cash 53,600,000 S3,400,000 —— — 83,200,000 $3,000,000 - $2,800,000 $2,600,000 - - _.__ S2,268,000 $2,400,000 $2,200,000 — - $2,000,000 _S1,800,000 51,600,000 - 51,400,000 $1,200,000 $1,000,000 $800,000 .:._ $600,000 T _ $400,000 $200,000 — - $� i3l'V2a7^_ V3112p13 2R81b113 313 013 130M 131 5/3120731�? 1�U13 W3wman 9m7 x13 fo 3luxn 11130x2013 1,3112013 /Cash 53.509,138 53,412,787 S's_307,694 52,962,393'S2.d85,91,5$2,379,0G'_'c1.�=,.a-_ �q-,g550 53,958,653 S?,755,147 S3,S6xp 16 5'372.613 53,643,612 TAUTGES REDPATW,LTD. Copyright©2013 HLS Tautges Redpath,Ltd 11 Certified PublicAccountonts i r $4,000,006 .............. �. Fund Balance $3,000.oQa $2,500,000 $2,000,000 -- - $1,500,000 ._ ..._........_. —__.__.._.._.-- _ _ -�HCtual Fund Baknsc $1,000,000 -_--- ------ .. - �—Minimum Fund Balance ��paf Icy $500,000 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 TAUTGEs REDPATH,LTD. Copyright©2013 HLBTautges Redpath,Ltd. 12 Certified Public Accountants Page 8 of 10 Capital • Funds increaseln Fund Interfund Fund Balance Fund Revenues Expenditures Transfers Balance _12/31/2013 Comments Expenditures relate to Hwy 36 Bridge Project. Capital Revolving $19 00 $449000 $536000 $106000 $209,000 Received transfer from Genera l Fund Budgeted Projects and Equipment Revolvin (5,000) 93,000 456,000 358,1)()o 1,184,000 See later comments. Received transfer from General Fund. Expenditures relate to 2014-2015 Street Street Reconstruction 13 000 305,00 337,000 19,000 2,492,000 Reconstruction City Hail Improvements 9,000 9,000 . 108,000 Accounted for construction of city hall. Park Development 2 000 55,000 (57,0001 756 000 Moelter Park 2 000 (2,0 594,000 Receives annual transfer from Water and Sewer.Expenditures relate to Washington County Llti l ity I mprovements a t 62 nd a rd Renewal and Re lacement 13,000 422,000 262,000 (173,000) 4,684,000 Oxboro Storm Sewer Renewal Re lacemant 2 000 - 80,000 78,000 405,000 Received transfer from General Fund. Sanity Sewer Connection 2000 2000 413,000 Water Connection 2000 2000 441,000 Storm Sewer Connection -_(8,000) 3,000 950,000 Water Tower Rehabil itation 33,000 40,000 73,000 126,000 Received tra nsfer from Water fund. Well Rehabilitation 13,000 13,000 108,000 Received transfer£rom Waterfund. Sewer Rehabilitation 2,000 2 000 46,000 Received transfer from Sewer fund. Totals $8,000 $1333000 $1,726000 $401000 $12516000 TAuTGEs REDPATH,LTD. Copyright©201.3 HLB Tautges Redpath,Ltd. , Certified Public Accoun rants Water Utility $800,000 �- _ _ Water Operating 5700,000 - evenue&Expense S60o,u0u $500,000 - o oz ®rmo n�r�s�au $400,000 ti Pcs ISaviort $300,000 $200,000 $100,000 -- $0 2007 2008 2009 2010 201t 2012 2013 ®TAUTGEs REDPATH,LTD. Hl©2613 H Ill Redpath,Ltd. 14 Cerfirled PublicAceeuntants Page 9 of 10 Sewer Utility $1,400,000 T— - _ Sewer Operating $900,000 Revenue& $800,000 - $700,000 $600,000 -- Dc; W ®T,.Waou $500,000 is__ �AO oche Sxxrywccs I o MCE.s $400,000 -- Op,-,W Revue $300,000 $200,000 $100,000 $o - 2007 2008 2009 2010 2011 2012 2013 ®Ul1TGE5 REDPATH, LTD. Copyright©2013 HLB Tautges Redpath,Ltd. ;5 Cetifted Public Accountants Storm Sewer $100,000 Storm Sewer Operating $90,000 _ Revenue&Expense $80,000 $70,000 $60,000 AM 01ha r $50,000 �Cwaaee,I S—kh OPerap WService, $40,000 $30,000 $20,000 $10,000 _. $o 2007 2008 2009 2010 2011 2012 2013 TAl1TGES REDPATH,LTD. Copyright 02013 HLB Tautges Redpath,Ltd. 16 Certified Public Accountants Page 10 of 10