HomeMy WebLinkAbout03.28.2005• •
COUNCIL WORK SESSION
March 28, 2005
4:25 p.m.
Council Chambers
Members present: Mayor Hurley, Cole, Greenwood, Clark, Schmitt, Gunderson, Welper.
Members absent: Kincaid.
Moved by Welper, seconded by Gunderson that the Agenda, as proposed, be approved. Ayes:
Six. Absent: Kincaid. Motion carried.
The purpose of the meeting was to review the FYE04 Audited Financial Report.
Steve Duggan of Hogan — Hansen, A Professional Corporation, reviewed the FYE04
Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2004. Mr. Duggan
noted that the report is unqualified. The unreserved and undesignated general fund balance
increased by $1,324,263, for a fund balance of $3,783.989 or 12 percent of total general fund
expenditures. Some of the reasons for the increase in fund balance was the Police Department
was under budget by $319,000, the liability insurance deductible had a balance of $219,000, and
several businesses paid off loans to the city accounting for about $320,000. Overall general fund
balance, including amounts restricted and designated for special purposes, increased by
$2,239,696. General fund unrestricted cash of $5,811,473 is 17.3 percent of general fund
revenues. A portion of this cash has been designated by the council for the specific purposes of
providing matching funds for the Vision Iowa award to complete the Riverfront Renaissance
project.
Mr. Duggan reviewed the financial statements, balance sheet, statement of activities, statement
of revenue and changes in fund balances and notes to the financial statements. Mr. Duggan
reviewed the schedule of findings relating to the financial statements, federal awards and
statutory reporting. Mr. Duggan reported there were only four findings related to the financial
statements compared to seven last year. Two findings are new and two are carried over from last
year, which have seen improvements. Mr. Duggan noted there were no reported current year
instances of non-compliance in the federal awards. There were no new findings related to
statutory reporting, but Mr. Duggan reported that disbursements in the health and social services
function exceeded the amended budget by $1,216.00. Mr. Duggan reported that the Federal
Projects Special Revenue Fund had a deficit balance at June 30, 2004 of $841,635, and the year
before had a deficit of $551,566. The deficit occurs because governmental accounting principles
require that grant reimbursements not received within 60 days of year end be reported as
deferred revenue creating a deficit fund balance. This is a temporary deficit which is cleared
when the revenue is received.
Mr. Duggan reported that the ordinance adopted by the council on December 13, 1999 requires
the Airport Board to maintain a positive cash balance at all times in airport operations. Through
June 30, 2003, cash deficits totaled $368,835 and during the year ended June 30, 2004 airport
operations incurred a cash loss of $114,318, resulting in an accumulated cash deficit of
$483,153.
Mayor Hurley commented that this is a remarkable report and thanked Michelle Weidner and her
staff. Mayor Hurley stated that the unrestricted cash balance should help the city when we ask
for a bond rating. Michelle Weidner, Chief Financial Officer, reported that Moodys is always
concerned about the fund balance, and they would like a 25 percent unrestricted cash balance.
With no further business before the council, it was moved by Welper, seconded by Cole that the
meeting be adjourned at 4:52 p.m. Ayes: Six. Absent: Kincaid. Motion carried.
Nancy Eckert
City Clerk