1 00:00:11,020 --> 00:00:20,890 Okay, we're good. Thank you. Call the Finance Committee meeting to order for there's a September 10th. 2 00:00:20,890 --> 00:00:32,520 roll call member Matt Viren your Sue Role here member Tim Limon member Mark Willer your member 3 00:00:32,520 --> 00:00:38,220 Susie Zilmer we also have present finance director Tina Nelson council member Bruce 4 00:00:38,220 --> 00:00:45,640 Thielin Dan Carlson with Clifton Larson Allen auditor in city Cindy Bauer city clerk 5 00:00:45,640 --> 00:00:47,400 we have a corn 6 00:00:50,050 --> 00:00:54,310 discuss consider approval of the minutes for the July 10th 2025 finance 7 00:00:54,310 --> 00:00:54,930 committee meeting. 8 00:00:55,030 --> 00:00:55,710 Good to check. 9 00:00:56,070 --> 00:00:58,430 I'm on move to approve those minutes. 10 00:00:58,930 --> 00:00:59,890 Willer will second. 11 00:01:00,290 --> 00:01:01,170 We have a motion in a second. 12 00:01:01,350 --> 00:01:02,430 All in favor say aye. 13 00:01:02,810 --> 00:01:03,030 Aye. 14 00:01:03,810 --> 00:01:04,490 Any opposed? 15 00:01:05,390 --> 00:01:06,030 Motion carries. 16 00:01:07,290 --> 00:01:07,430 All right. 17 00:01:07,590 --> 00:01:12,310 Discuss considerations to counsel regarding the approval of the comprehensive annual finance 18 00:01:12,310 --> 00:01:15,830 report for 2025 to be discussed at the September 10th. 19 00:01:16,230 --> 00:01:16,870 This 20 00:01:20,330 --> 00:01:21,370 is Dan Carlson. 21 00:01:21,690 --> 00:01:24,210 He's the lead auditor for us. 22 00:01:24,290 --> 00:01:25,170 Aye, Dan. 23 00:01:25,170 --> 00:01:29,630 At a going page by page, he will come at a summary here. 24 00:01:29,710 --> 00:01:35,090 Summary would actually also mail with all the report. 25 00:01:36,290 --> 00:01:38,530 But they'll go over that and then if you have any questions, 26 00:01:38,710 --> 00:01:39,810 we'll answer your questions. 27 00:01:40,190 --> 00:01:40,870 I did have a question. 28 00:01:40,990 --> 00:01:42,690 Did that include a management letter? 29 00:01:43,130 --> 00:01:43,970 Or did I miss that? 30 00:01:43,970 --> 00:01:44,870 Did it include what? 31 00:01:44,930 --> 00:01:45,870 A management letter? 32 00:01:45,990 --> 00:01:49,050 You know, that covered letter that kind of summarizes everything? 33 00:01:50,430 --> 00:01:53,150 No, that's what you just had signed, right? 34 00:01:53,150 --> 00:02:04,330 It's like, what I find is a compilation, or what I find better, but to other letters, you'll get a file on. 35 00:02:05,690 --> 00:02:06,670 Now, kind of the Uber. 36 00:02:11,150 --> 00:02:12,710 That's what I was curious about. 37 00:02:13,150 --> 00:02:14,810 And I should have been attached. 38 00:02:15,470 --> 00:02:17,510 Yeah, there was something that was combined. 39 00:02:18,050 --> 00:02:19,430 I mean, it was not. 40 00:02:19,570 --> 00:02:22,770 It was this week that we just sent out to their Tuesday or something. 41 00:02:23,210 --> 00:02:25,490 And I think I sent them here through adjustment. 42 00:02:25,630 --> 00:02:29,170 And then the summary just had a little change out, 43 00:02:29,170 --> 00:02:30,550 and I put revised on that. 44 00:02:31,090 --> 00:02:32,770 But it was probably after this. 45 00:02:32,870 --> 00:02:35,190 So if you scroll down all the way, OK. 46 00:02:35,410 --> 00:02:36,210 That's what I had. 47 00:02:36,910 --> 00:02:37,970 This is the revised one. 48 00:02:38,690 --> 00:02:39,010 OK. 49 00:02:39,170 --> 00:02:39,850 We'll get there then. 50 00:02:40,190 --> 00:02:40,790 We'll go over it. 51 00:02:41,370 --> 00:02:43,170 But yeah, could do we got you there, Mark? 52 00:02:43,550 --> 00:02:45,290 I didn't. 53 00:02:45,310 --> 00:02:45,610 All right. 54 00:02:45,730 --> 00:02:47,870 I'll get started then. 55 00:02:47,870 --> 00:02:49,010 Y'all wouldn't really well. 56 00:02:49,370 --> 00:02:50,070 Thanks, Tantina. 57 00:02:50,490 --> 00:02:51,750 I missed the part of it. 58 00:02:51,750 --> 00:02:58,030 for getting everything we needed with the order once again. As Teta mentioned, the 59 00:02:58,030 --> 00:03:01,650 the order report itself is longer and for some rising and like we usually do it. 60 00:03:03,150 --> 00:03:08,570 And as I jump down some notes to go along with it, but feel free of as we go through 61 00:03:08,570 --> 00:03:14,090 just to ask questions as we go along, I think it's easier that way. So feel free to chime in if you 62 00:03:14,090 --> 00:03:17,270 have any- Can you talk into the microphone? Oh yeah, please. 63 00:03:17,270 --> 00:03:20,350 I should have brought a step stool. 64 00:03:21,930 --> 00:03:22,930 Can you hear me, okay? 65 00:03:25,670 --> 00:03:30,230 The first thing I wanted to note was the audit opinion. 66 00:03:30,910 --> 00:03:37,250 This is in years past, the city received a non-modified audit opinion, which means the 67 00:03:37,250 --> 00:03:42,070 financial statement numbers and the disclosures are materially stated correctly. 68 00:03:42,950 --> 00:03:46,270 It's the highest level of audit opinion that city can receive. 69 00:03:48,430 --> 00:03:55,170 Second part talks about, well, right below that, the management letter, which we just discussed. 70 00:03:55,990 --> 00:04:02,550 Then there's three things in there that have been in there in the past that are common with other cities of your size in the area. 71 00:04:04,150 --> 00:04:07,550 One, CLA, it helps prepare the financial statements, and you know, 72 00:04:08,150 --> 00:04:24,550 Do there's adjustments that are made as part of the audit that we make every year that they're being just the limited segregation of duties because of a smaller office staff. So it's hard to have controls over every cycle at every level. 73 00:04:25,550 --> 00:04:34,530 So just items were required to disclose, but honestly it's not that big of a deal because if you use to look at other letters as well in the area, you'll see the same things. 74 00:04:34,530 --> 00:04:37,750 And I just, if I can comment on each of those, 75 00:04:39,370 --> 00:04:42,690 the, you know, what they do for the, they create the financial statements. 76 00:04:42,850 --> 00:04:46,590 A lot of it is like keeping up with GFC rules and things like that. 77 00:04:47,090 --> 00:04:50,530 And things that I don't have the time to learn in their CPAs. 78 00:04:51,250 --> 00:04:53,010 So they put the financial statement together. 79 00:04:53,250 --> 00:04:56,810 So you're always going to have that in there unless I created that financial statement. 80 00:04:58,010 --> 00:04:59,270 And there's going to be those, 81 00:05:00,000 --> 00:05:06,940 The adjustments that they do at the end of the depreciation that I believe the adjustments are getting pretty small compared to what they used to be. 82 00:05:07,140 --> 00:05:15,240 And I think as a municipality we have very few adjusting entries at the end, compared to a lot of because we do most of them. 83 00:05:16,000 --> 00:05:25,260 But in the lack of segregation of duties, we're doing a lot better. I think that we're doing everything that we can to try to split up only one person doing things. 84 00:05:25,260 --> 00:05:29,420 But at that, at some point, maybe you could hire them to show, 85 00:05:29,760 --> 00:05:32,020 but as it is difficult to miss my office, 86 00:05:32,440 --> 00:05:34,640 but it's getting more and more hard. 87 00:05:34,760 --> 00:05:37,060 I don't know how somebody could actually do anything 88 00:05:37,060 --> 00:05:38,920 because we're separating everything out. 89 00:05:38,980 --> 00:05:40,840 This person writes the fact that this person 90 00:05:40,840 --> 00:05:43,020 looks at over this stuff to me out. 91 00:05:43,500 --> 00:05:44,620 This person approves. 92 00:05:45,220 --> 00:05:50,000 As we get bigger, that's an area that I always focus on 93 00:05:50,000 --> 00:05:51,940 because we have seen a lot of growth. 94 00:05:52,460 --> 00:05:54,220 And I would think at some point, 95 00:05:54,220 --> 00:05:56,560 We could get more help. I would like that. 96 00:05:56,560 --> 00:06:01,500 Well, I know it's a fine line, but it's such an important thing. 97 00:06:01,720 --> 00:06:07,680 Yeah, we are setting up an AP process system too, or in the middle of that project right now, 98 00:06:08,120 --> 00:06:11,580 and that's going to have the end of we really know about it. 99 00:06:11,860 --> 00:06:16,880 It's going to have to, but each department had, we'll have it go through a process and it'll have 100 00:06:16,880 --> 00:06:21,520 the pack of them approving it and putting the sign number in and things totally that helps. 101 00:06:23,020 --> 00:06:30,240 I don't have in Jackie, she's taken on some more things, so, you know, Betsy used to stuff envelopes. 102 00:06:30,540 --> 00:06:36,120 She doesn't do that anymore, you know, she puts the checks in, I review it. 103 00:06:36,360 --> 00:06:43,140 And then it gets, they get printed out, and then Jackie actually sends them out. 104 00:06:43,760 --> 00:06:47,140 And make sure that everything that is on the checks on the report. 105 00:06:47,140 --> 00:06:53,780 And then it gets forced and it's always in a batch and I go back and look at those batches to make sure what they would what I looked at. 106 00:06:53,940 --> 00:06:59,780 And then I also see every time there's a batch of check that gets out we have called positive pay that we upload to the bank. 107 00:07:00,440 --> 00:07:06,360 And so that goes in so that every check is matched against what you see it is. 108 00:07:06,660 --> 00:07:08,840 You upload to the bank. 109 00:07:09,460 --> 00:07:18,360 this check was to the card dealership or the, you know, the grocery store and it was this much. 110 00:07:18,360 --> 00:07:23,220 It has to match up exactly. Otherwise it'll like something and we get messages every day to make sure that those are. 111 00:07:23,920 --> 00:07:28,900 So, do you foresee in the future a system where you don't even have to write checks anymore? 112 00:07:30,660 --> 00:07:33,000 I think the checks for us right now. 113 00:07:33,020 --> 00:07:37,920 I mean, I just, although I think that's trail right now, the way that we have it, 114 00:07:37,920 --> 00:07:39,520 I really don't like her that hurts. 115 00:07:39,700 --> 00:07:40,940 I don't like the credit card statement 116 00:07:40,940 --> 00:07:42,240 because it's not a good trail. 117 00:07:42,320 --> 00:07:45,920 I mean, as far as, you know, like online bill pay. 118 00:07:46,580 --> 00:07:47,740 I mean, the card dealership could take 119 00:07:47,740 --> 00:07:49,040 a wire transfer versus. 120 00:07:49,260 --> 00:07:51,680 And we do, man, we call them, they're no taxes. 121 00:07:51,780 --> 00:07:56,520 We have doom and batches, but yeah. 122 00:07:56,880 --> 00:07:58,820 I mean, I just, yeah. 123 00:07:59,620 --> 00:08:01,500 It's interesting, the tools that are, 124 00:08:01,500 --> 00:08:02,940 all of us in another word. 125 00:08:03,020 --> 00:08:04,400 I mean, it's crazy. 126 00:08:04,560 --> 00:08:06,140 I mean, we're learning something new 127 00:08:06,140 --> 00:08:11,120 and we're being introduced to new technologies all the times crazy. 128 00:08:11,320 --> 00:08:12,720 I mean, we're, our heads are spinning. 129 00:08:12,860 --> 00:08:14,540 We're kind of in the middle of it. 130 00:08:14,700 --> 00:08:19,980 And it's right now we don't have the system set up for all ACH things. 131 00:08:20,280 --> 00:08:23,740 And I prefer because of all the processes that we go through 132 00:08:23,740 --> 00:08:27,080 to actually send that checkout and get it stuffed in mail. 133 00:08:27,860 --> 00:08:32,240 If you just had an ACH go through, that's, that's cutting that lack of 134 00:08:32,240 --> 00:08:37,400 know, segregation of duties down because maybe you know someone could go and create that. 135 00:08:37,460 --> 00:08:38,400 I don't know. 136 00:08:38,620 --> 00:08:43,180 Going with that older process does allow more people to have oversight and interaction 137 00:08:43,180 --> 00:08:45,120 with the transaction in the way. 138 00:08:46,540 --> 00:08:47,560 I don't know how you feel. 139 00:08:48,660 --> 00:08:52,080 Yeah, I mean, there's certain things like tonically that you can do as far as I can 140 00:08:52,080 --> 00:08:56,280 kind of sign off some things, but stuff like things that we're seeing more. 141 00:08:57,480 --> 00:09:01,440 But yeah, you don't want to make it even first situation 142 00:09:01,440 --> 00:09:03,920 and having less segregation of duties by 143 00:09:03,920 --> 00:09:05,300 and then I'm going to check on it. 144 00:09:05,540 --> 00:09:07,660 Attached to it about sure it has the 145 00:09:07,660 --> 00:09:09,500 invoice of what it is. 146 00:09:10,360 --> 00:09:10,480 So yeah. 147 00:09:10,680 --> 00:09:10,940 It's cool. 148 00:09:11,160 --> 00:09:11,540 These paper. 149 00:09:12,000 --> 00:09:12,240 Yeah. 150 00:09:13,220 --> 00:09:14,420 Well, we have a scan. 151 00:09:14,480 --> 00:09:15,760 Actually, we have the scan copy. 152 00:09:16,260 --> 00:09:17,480 Everything's scanned in right now. 153 00:09:17,700 --> 00:09:19,460 Where's paper copy going in? 154 00:09:19,860 --> 00:09:21,300 We keep it for a year until it's. 155 00:09:21,460 --> 00:09:21,940 Exactly. 156 00:09:22,760 --> 00:09:24,900 Because we're all going in and then it'll go. 157 00:09:24,900 --> 00:09:25,460 For attention. 158 00:09:25,620 --> 00:09:26,980 And we pay to have it taken care of. 159 00:09:27,360 --> 00:09:27,840 No. 160 00:09:28,320 --> 00:09:29,780 We're not keeping those anymore. 161 00:09:29,780 --> 00:09:33,780 You know, we pay for somebody to come in and shred it. 162 00:09:34,620 --> 00:09:36,020 We just saw throw it away. 163 00:09:36,860 --> 00:09:38,880 We send it out. 164 00:09:39,100 --> 00:09:40,160 Oh, we get it out. 165 00:09:40,380 --> 00:09:42,100 Um, three o'clock and we've done that. 166 00:09:42,360 --> 00:09:45,320 Um, and then other times we have shredders and we, then we can pay for it. 167 00:09:45,320 --> 00:09:49,100 But that was kind of our mass that we had a mass in the last couple of years. 168 00:09:49,300 --> 00:09:50,400 Our records back up. 169 00:09:50,580 --> 00:09:53,660 And that's when there were so many that there's no way we could pay. 170 00:09:53,660 --> 00:09:57,300 We applied the attention and they came in and we set up a date and they brought out. 171 00:09:57,460 --> 00:09:59,500 They loaded up a truck and 172 00:10:14,010 --> 00:10:27,670 We should continue to look for more additional positions or dedicated people that wouldn't kind of interact and just add as an extra kind of offer. 173 00:10:27,670 --> 00:10:31,830 like if there are changes that are made in the cycles to make sure the things are covered 174 00:10:31,830 --> 00:10:35,110 as changes get made and technology happens. 175 00:10:36,030 --> 00:10:36,830 As well. 176 00:10:38,860 --> 00:10:41,040 Same mark just for the record I did. 177 00:10:41,200 --> 00:10:42,320 It was like page 79. 178 00:10:43,080 --> 00:10:44,700 It was after the draft. 179 00:10:46,840 --> 00:10:51,940 No, I just, I, because I always liked to know if there's something missing, but it was at 180 00:10:51,940 --> 00:10:52,580 the end of the page. 181 00:10:52,580 --> 00:10:53,520 I didn't know what's route. 182 00:10:53,760 --> 00:10:57,080 So I'm sorry by putting it in the wrong order. 183 00:10:59,780 --> 00:11:01,380 It wasn't page 80. 184 00:11:01,620 --> 00:11:01,800 No. 185 00:11:02,500 --> 00:11:02,880 No. 186 00:11:03,060 --> 00:11:03,080 No. 187 00:11:03,080 --> 00:11:03,260 No. 188 00:11:05,940 --> 00:11:11,060 The second section, this is a couple of things that we've helped with the city this year, 189 00:11:11,160 --> 00:11:15,760 in the past, the PSC report, financial report, form to the statement, 190 00:11:16,600 --> 00:11:18,600 and your report in July that's due. 191 00:11:18,900 --> 00:11:20,080 So those are just listed there. 192 00:11:22,370 --> 00:11:26,350 Now to get into the numbers, we can go over the general fund first. 193 00:11:27,070 --> 00:11:33,710 This is a similar summary in years past where we have the balance sheet showing here the last four years, 194 00:11:34,110 --> 00:11:36,750 and then the revenues and expenditures shown below. 195 00:11:37,290 --> 00:11:39,350 So I'll note a few things on the balance sheet. 196 00:11:40,870 --> 00:11:45,050 You'll notice that do from other funds. 197 00:11:45,710 --> 00:11:47,110 So that's like the third line down. 198 00:11:47,210 --> 00:11:50,330 So if you look at this is comparing the last year of this year now. 199 00:11:50,550 --> 00:11:55,010 It went down from 1.2 million down to 297,000. 200 00:11:55,010 --> 00:12:00,910 And there was an amount that was due to the general from the public-saving building fund, 201 00:12:01,270 --> 00:12:02,410 is like around a million dollars. 202 00:12:02,490 --> 00:12:07,710 So that's the reason why it came back down to 24 was kind of the anomaly of why it was 203 00:12:07,710 --> 00:12:08,450 so high. 204 00:12:11,730 --> 00:12:19,150 If you go down in the fund balance section under a sign, there's a few things that are in 205 00:12:19,150 --> 00:12:19,350 there. 206 00:12:19,410 --> 00:12:24,710 Some of the sign dollars related to solar circle in the music series that we just classify 207 00:12:24,710 --> 00:12:26,710 that as a sign in that section. 208 00:12:26,710 --> 00:12:30,590 We have news and expenditures. 209 00:12:31,290 --> 00:12:36,570 You'll see just a gradual increase with both over the last four years, which makes sense 210 00:12:36,570 --> 00:12:38,850 enough in a growing city. 211 00:12:40,410 --> 00:12:46,350 The number that changes more is that net other financing sources and uses, though, the 212 00:12:46,350 --> 00:12:50,050 large amount last year related to those alers. 213 00:12:50,950 --> 00:12:54,430 There's some investments that were transferred to the capital projects fund last year. 214 00:12:54,430 --> 00:13:08,610 So that's why it's thick-celled so much that 4.6 million in 2024, we laid it to that and we'll talk about that too when we get to the Capital Project's fund, you'll see that shop there as well and we'll move back at 2024. 215 00:13:10,130 --> 00:13:23,330 But overall, you know, at the end of the year, the general fund, at a net loss at 370,000, really the general fund's goal is to break close to even almost every year and I mean it's pretty close, 370,000. 216 00:13:23,330 --> 00:13:32,610 And that was our last year for budgeting that 400,000 to from reserves to stay equal. 217 00:13:32,770 --> 00:13:37,290 And then now 2026 we budget it that we don't we're not using that we don't have that in our budget. 218 00:13:39,600 --> 00:13:43,100 And you look back in 23 and 22 and it's close to zero as well. 219 00:13:44,080 --> 00:13:47,880 But Dan, what was our cash should investments so much bigger in 23 and 22? 220 00:13:50,380 --> 00:13:50,540 So we? 221 00:13:51,000 --> 00:13:53,660 Oh, that relates to those investments from alers. 222 00:13:53,940 --> 00:13:55,700 That transferred over to the federal projects. 223 00:13:55,700 --> 00:14:01,860 So if you look at the capital projects, one's balance sheet, that's right, we don't let it go. 224 00:14:02,300 --> 00:14:03,040 We don't let it go, we don't let it go. 225 00:14:03,600 --> 00:14:08,700 Just a reclassification of the investments that we're, they should have been. 226 00:14:10,900 --> 00:14:12,960 We have a calculation on the bottom there. 227 00:14:13,200 --> 00:14:16,520 It takes the on assigned fund balance was the 5.2 million, 228 00:14:17,420 --> 00:14:20,240 divided by the expenditures, the 8.5 million. 229 00:14:20,280 --> 00:14:24,960 So really, what's that saying is, you know, if you have the same amount of expenditures next year, 230 00:14:24,960 --> 00:14:29,760 your fun balance could cover, you know, 61% of the year of the cost. 231 00:14:31,700 --> 00:14:35,000 And it's gradually decreasing over the last four years. 232 00:14:35,380 --> 00:14:37,820 I don't necessarily think it's a no bad thing. 233 00:14:37,940 --> 00:14:42,240 It's just a matter of using the fun balance, the what you have at the time. 234 00:14:42,620 --> 00:14:45,440 A lot of times we see like 30 to 40 percent. 235 00:14:45,920 --> 00:14:47,020 So you're still a little bit average. 236 00:14:47,320 --> 00:14:50,760 Do I see as far as you're available fun balance for the future? 237 00:14:50,760 --> 00:14:51,000 . 238 00:14:59,040 --> 00:14:59,980 The next 239 00:15:00,000 --> 00:15:27,180 This section is the special revenue funds. It's a little different format than the general fund. It just shows the fund balance at a set in time. So it's just the balance of that fund, you know, all four years. Public library, you'll see the gradual increase over time. There's a larger jump in 2024 up to 580,000 that we've related to the, there's a 183,000 donations. 240 00:15:32,290 --> 00:15:38,230 The CDBG residential loan fund, that's stays consistent, there's not a lot of activity that happens in that fund. 241 00:15:39,410 --> 00:15:48,510 The yard fund, that's new, not a whole lot of activity in the current year, just a smaller positive balance of 10,000. 242 00:15:48,810 --> 00:15:54,330 In the affordable housing fund, that was created back in 2023 as you can see there. 243 00:15:54,330 --> 00:16:03,950 There's 220,000 transit from TID2, if we're close, that just interest income in 2024, 244 00:16:04,830 --> 00:16:10,250 then 2025 there was 6.2 million transit from TID3 before it was closed. 245 00:16:11,470 --> 00:16:14,230 That's like the large, from May 4 to 25. 246 00:16:20,580 --> 00:16:24,460 The debt service fund, the fund balances those, 247 00:16:24,460 --> 00:16:29,860 is pretty consistent. The revenue is coming in the property taxes and the transfers in from 248 00:16:29,860 --> 00:16:36,240 the tids offset with the debt payments that are made. So, for example, in 2025, you know, 249 00:16:36,340 --> 00:16:41,940 the property tax revenue and 4.5 million was transferred from TID-3 to pay debt. 250 00:16:44,240 --> 00:16:45,240 So, overall, 251 00:16:45,480 --> 00:16:53,360 there was $5.8 million, almost $5.9 million of principle and interest that was paid out of 252 00:16:53,360 --> 00:16:54,880 at service fund in 2025. 253 00:16:58,970 --> 00:17:04,430 And the 10th portion we didn't have to text, so that allowed the tip paid for that much 254 00:17:04,430 --> 00:17:14,060 of the net service, which was more than 0.5 million, but the tip. 255 00:17:14,060 --> 00:17:14,500 The tip. 256 00:17:21,280 --> 00:17:27,620 That takes us down in the section 6, the capital projects funds, the tids are listed on top 257 00:17:27,620 --> 00:17:29,840 there, the neighborhood container grant, 258 00:17:30,340 --> 00:17:33,400 Hillcrest Safe Room, a new fund, public safety 259 00:17:33,400 --> 00:17:35,460 building capital projects fund. 260 00:17:36,020 --> 00:17:39,300 Two, two, you'll see, zero, and that did close in 2024. 261 00:17:41,020 --> 00:17:45,080 Tid three, then this is the fund balance of point and time 262 00:17:45,080 --> 00:17:48,740 at the end of the year, like we looked at the special revenue 263 00:17:48,740 --> 00:17:50,900 funds, so it's the same sort of presentation. 264 00:17:50,900 --> 00:18:00,700 one from 11.1 down to 4.7. During the year, well, part of that was that the transfer 265 00:18:00,700 --> 00:18:09,440 over to the debt service fund to pay the debt. Like I said, the 4.5 million. Let's see. 266 00:18:10,140 --> 00:18:15,060 And then the transfer to the affordable housing 267 00:18:17,140 --> 00:18:18,920 system. 268 00:18:20,200 --> 00:18:21,100 Yes, yep. 269 00:18:21,100 --> 00:18:22,480 The 6.2 million. 270 00:18:23,180 --> 00:18:23,400 Yep. 271 00:18:26,040 --> 00:18:26,440 Yeah, certainly. 272 00:18:27,180 --> 00:18:29,520 There's still property tax return under that came in, 273 00:18:29,960 --> 00:18:33,520 but, you know, the costs offset that to bring the balance down. 274 00:18:33,720 --> 00:18:36,040 And then it's closed though in 2026. 275 00:18:36,700 --> 00:18:39,160 And then paid to the other tax and jurisdiction. 276 00:18:39,500 --> 00:18:40,580 What was left over? 277 00:18:44,260 --> 00:18:52,620 To 4, the negative fund balance went down from 1.3 million down to 794,000. 278 00:18:52,720 --> 00:18:55,320 It's just a matter of the property tax revenue increased. 279 00:18:56,180 --> 00:18:58,680 It was higher than the cost for the year. 280 00:18:59,060 --> 00:19:01,820 So there's more cost than to 4 and 2024. 281 00:19:04,790 --> 00:19:06,830 More of a timing than what the cost is going to happen. 282 00:19:07,670 --> 00:19:10,050 But the property tax revenue keeps coming in. 283 00:19:10,050 --> 00:19:16,090 So if you look at it for, we did the Wells Asian nine, we're charged to four to 284 00:19:16,090 --> 00:19:19,730 right that's in there, in part of the payment for that. 285 00:19:20,050 --> 00:19:23,970 So that means it's going to be in the hole for a while, it expenditure period is completely done. 286 00:19:24,310 --> 00:19:28,510 But at the end of 2025, it still was in the negative of a 794. 287 00:19:28,790 --> 00:19:33,390 So that's what we still got to collect and tax revenue to be able to pay for all the bills that it 288 00:19:33,390 --> 00:19:39,010 was. And then it'll continue to just kind of go down. Keep going down as we collect that. 289 00:19:44,720 --> 00:19:48,760 The neighborhood container grant went to zero on 20, 25 that flows. 290 00:19:49,680 --> 00:19:51,140 Project was done. 291 00:19:51,220 --> 00:19:53,800 They'll cross safe room. There was some cost in there. 292 00:19:54,680 --> 00:19:59,860 Some kind of news that came in, but just a negative smaller balance. So far. I mean, that's fun. 293 00:20:00,560 --> 00:20:04,220 And that's all by Grange, or backed by Hillcrest. 294 00:20:04,580 --> 00:20:10,400 We need this cost that are covered by grant funds. We'll be paid by Hillcrest. So this is just a point 295 00:20:10,400 --> 00:20:13,760 time. At the end of that project, the city will be nothing. 296 00:20:18,180 --> 00:20:23,260 Sorry, safety building. Public safety building also closed in 2024 for that project. 297 00:20:24,280 --> 00:20:30,420 Capital projects fund. You'll see there. This is kind of what Tim brought up. You'll see the jump 298 00:20:30,420 --> 00:20:37,360 here from 23 to 24, the 3.9 up to 6.4 and the head to do with those investments that were transferred 299 00:20:37,360 --> 00:20:43,740 over the ALERS investments. Then in 25, it went up another million dollars, just the activity 300 00:20:43,740 --> 00:20:50,740 in that account, you're in that fund cause that. So if you look at, there's almost $4.2 million 301 00:20:50,740 --> 00:21:00,400 at issued. So there's 1.4 million in revenue. 5 million was spent. So there's a lot of 302 00:21:00,400 --> 00:21:05,520 itself, it'll show that detail of the expenditures that I've reviewed, but it's a time 303 00:21:05,520 --> 00:21:09,420 and thing a lot of time with capital projects, fun you'll have, debt-regrance, commitment 304 00:21:09,420 --> 00:21:12,980 might not get spent right away, depending on the order of things. 305 00:21:14,020 --> 00:21:14,020 So, 306 00:21:21,420 --> 00:21:28,900 now to the utilities, the water utilities first, has similar representation as far as the 307 00:21:28,900 --> 00:21:34,040 columns as the general format where you can see the balance you'd over the last four years, 308 00:21:34,040 --> 00:21:37,980 And then down below here, we have the change in that position 309 00:21:37,980 --> 00:21:40,080 and some ratios that we do. 310 00:21:41,020 --> 00:21:43,760 The first thing I wanted to note, you'll see the cash 311 00:21:43,760 --> 00:21:46,800 went up about a million dollars from 24 to 25. 312 00:21:48,340 --> 00:21:51,640 There was some debt proceeds that were received during the year 313 00:21:51,640 --> 00:21:53,880 875,000. 314 00:21:54,220 --> 00:21:57,860 And you also see that the corresponding long-term obligation 315 00:21:57,860 --> 00:22:00,600 also went up for the year. 316 00:22:00,960 --> 00:22:02,440 But there also payments made on that. 317 00:22:02,440 --> 00:22:05,100 So it's not a billion, but that also increased, 318 00:22:05,280 --> 00:22:11,460 but that was the reason why other current assets you'll see. 319 00:22:11,720 --> 00:22:14,120 And Tina was talking about this, how it jumped up 320 00:22:14,120 --> 00:22:17,800 from like 451,000 up to 2.1 million. 321 00:22:17,800 --> 00:22:25,160 That's the amount owed from Tid4 for those wells. 322 00:22:25,800 --> 00:22:30,160 And they're going to do to the water utility from the Tid. 323 00:22:32,210 --> 00:22:38,010 And that Tid4 will just pay those over the life of that safe drinking water loan. 324 00:22:40,350 --> 00:22:42,210 Otherwise, I didn't really notice anything else. 325 00:22:42,890 --> 00:22:46,230 The statement of net position, everything, no comparing this year to last year. 326 00:22:47,170 --> 00:22:48,290 We look at the current ratio. 327 00:22:48,470 --> 00:22:53,230 And the current ratio is your current assets divided by your current liabilities. 328 00:22:53,510 --> 00:23:01,450 So you take, you know, the 3.1, 2 million add those together and divide it by your 571,000. 329 00:23:01,450 --> 00:23:13,870 So it's sitting really strong. I mean, anything over one is desired. So it's the balance sheet is sitting in good shape or the statement of that position and went up so much from last year because of the cash and crease basically. 330 00:23:14,070 --> 00:23:19,130 And that's borrowing every other year, you know, one year, we're going to have a lot of cash. Next year, we're not going to. 331 00:23:20,030 --> 00:23:21,830 We're going to have a lot of cool stuff. 332 00:23:23,870 --> 00:23:24,970 All that water made. 333 00:23:26,370 --> 00:23:28,270 We have to speak to you first. 334 00:23:32,190 --> 00:23:38,190 The change in net position, I mean, that's been a higher the last three years, and it really has to do with the contribution. 335 00:23:39,210 --> 00:23:51,810 So, for example, for 2025, there was, see, I think it was around $800,000 that was contributed from TID-3 for the White Tail. 336 00:23:51,810 --> 00:23:58,270 would's project. So if you look at last year in 2024, there's 1.5 that was contributed. 337 00:23:59,170 --> 00:24:04,150 So anything that's going to be paid for by a governmental fund, but still gets recorded 338 00:24:04,150 --> 00:24:08,910 on utility, still gets recorded as revenue, and that's what are making those dollar 339 00:24:08,910 --> 00:24:13,070 amounts so high, and that probably will continue over time, and this is all these projects 340 00:24:13,070 --> 00:24:13,490 happen. 341 00:24:14,110 --> 00:24:19,630 And that's contributed not only, governmentally, it's from the developers as well. 342 00:24:19,630 --> 00:24:22,350 Yeah, they can also be included in there too, to be over. 343 00:24:22,590 --> 00:24:26,630 So like, before we accept the road, they have to get it up. 344 00:24:26,950 --> 00:24:28,470 And then it becomes our street. 345 00:24:29,050 --> 00:24:30,910 So then they contribute it to us. 346 00:24:31,070 --> 00:24:31,910 So it's now our street. 347 00:24:31,970 --> 00:24:33,830 So we have to record that as our assets. 348 00:24:34,530 --> 00:24:35,810 Mm-hmm. 349 00:24:35,970 --> 00:24:36,570 Yep, exactly. 350 00:24:37,990 --> 00:24:39,970 Radar return is a PSE number. 351 00:24:40,170 --> 00:24:41,290 States consistent. 352 00:24:41,770 --> 00:24:43,850 If you're looking the last four years, pre-consistent. 353 00:24:45,210 --> 00:24:49,610 And the last rate adjustment was in 2024, in 17th. 354 00:24:53,480 --> 00:24:59,640 sewer utility, same thing as the water as far as the cash, cash went up some and so did the 355 00:25:00,110 --> 00:25:07,010 Long-term obligations, so let's do it. $725,000 of debt proceeds that were received. 356 00:25:08,070 --> 00:25:14,590 One thing to note on the sewer utility we talked about this and to make sure what we did record the amount, 357 00:25:14,750 --> 00:25:17,450 because we have an amount that we still owe to the city of O'Clare. 358 00:25:17,670 --> 00:25:20,030 I got a number of Christian, a really good number. 359 00:25:20,090 --> 00:25:26,970 We booked an amount as a payable and an expense so that the financial statements aren't off. 360 00:25:26,970 --> 00:25:31,970 So it's not just sitting on there that we only spent this much in one year. 361 00:25:33,390 --> 00:25:33,910 Exactly. 362 00:25:38,180 --> 00:25:41,620 You see the capital assets also went up, you know, 1.5 million. 363 00:25:41,760 --> 00:25:46,500 And I had to do a contribution from the White Tail Woods T3 project. 364 00:25:46,800 --> 00:25:48,140 So see the increase there. 365 00:25:51,480 --> 00:25:56,080 Otherwise the rest of this thing of net position looks pretty consistent with last year. 366 00:25:56,600 --> 00:26:00,620 Your current ratio is looking good consistent, you know, at six. 367 00:26:00,620 --> 00:26:06,500 change in that position, the reason why I so high is that contribution from the 368 00:26:06,500 --> 00:26:12,360 white tail with its project 1.5 million and that's why 2024 was down, but 2023 369 00:26:12,360 --> 00:26:16,200 must have had another contribution. So you can see how it can fluctuate from 370 00:26:16,200 --> 00:26:18,640 you to year a lot depending on what's contributed. 371 00:26:24,300 --> 00:26:27,080 The stormwater fund, that 372 00:26:27,080 --> 00:26:30,820 position, pretty consistent, that wasn't going to go over anything there. 373 00:26:35,060 --> 00:26:35,060 Current 374 00:26:35,060 --> 00:26:40,920 a good high number, the change in that position, I mean you can see it's kind of gradually 375 00:26:40,920 --> 00:26:47,720 decrease in F's. No expenses being higher. Which made all the more sense why we did a stormwater 376 00:26:47,720 --> 00:26:53,600 study in increase the rate. And it was a good time to do that. 377 00:26:57,720 --> 00:26:58,300 Good tractor. 378 00:27:05,300 --> 00:27:11,040 Section 8, this is all your welcome obligations. We talked a little bit about the depth, 379 00:27:11,040 --> 00:27:16,680 out, summarized it again here, this is a nice little snapshot of a point in time of how much 380 00:27:16,680 --> 00:27:23,140 liabilities you had. So for your general obligation note, so we talked about in total 381 00:27:23,140 --> 00:27:34,300 it was like $6.1 million with a new Geo note, $4.170, $470,000 went to the capital projects fund, 382 00:27:35,020 --> 00:27:40,180 so that's like an addition to this, so it would have bumped it up. But on the other hand, 383 00:27:40,180 --> 00:27:47,460 you know, 550, 550, 550,000 was paid on principle, so that brought it down at that. 384 00:27:47,820 --> 00:27:52,120 Tid number three, no was totally paid off, it was like 3.8 million. 385 00:27:53,060 --> 00:27:59,480 So it nets the not changing a whole lot from 15 down to 14, but there was some activity in there 386 00:27:59,480 --> 00:28:02,160 causing that increase and decrease. 387 00:28:02,620 --> 00:28:08,860 Which in 2026 we won't be borrowing, so we'll be paying debt, but not borrowing so that 388 00:28:10,940 --> 00:28:16,140 go down, and then I'll go back up in 27 when we borrowed it down in 20. 389 00:28:16,840 --> 00:28:17,580 Yeah, that'll fluctuate. 390 00:28:18,580 --> 00:28:20,920 Unless we have to buy the fire truck or something. 391 00:28:21,480 --> 00:28:21,600 Yeah. 392 00:28:21,600 --> 00:28:23,060 In 26, yes. 393 00:28:23,600 --> 00:28:26,020 Yeah, and you can see that in 23 to 24, how it went down. 394 00:28:26,180 --> 00:28:27,560 There's this principle of hands made. 395 00:28:28,440 --> 00:28:29,760 That would be what we'd be expected then. 396 00:28:30,140 --> 00:28:31,160 26 like Tina said. 397 00:28:32,300 --> 00:28:35,840 If you go down under business type activities, the general obligation notes. 398 00:28:35,840 --> 00:28:42,840 mean you have your normal payments that are made, but then then that new note in 2025 399 00:28:42,840 --> 00:28:45,840 1.9 million was allocated to 400 00:28:46,520 --> 00:28:48,500 utilities, and that's why 401 00:28:48,500 --> 00:28:50,900 even though some payments are made. 402 00:28:53,410 --> 00:28:55,470 The least liability going back up here 403 00:28:56,730 --> 00:29:06,470 Your normal payments are made on the lease, but there is also 230,000 and new leases and 404 00:29:06,470 --> 00:29:11,470 is transferred down here to the business type or utility 405 00:29:11,470 --> 00:29:15,250 leases. So overall there was some new leases and payments made, 406 00:29:16,690 --> 00:29:20,350 but it's just showing the difference from how, you know, the business 407 00:29:20,350 --> 00:29:26,390 type went up and then the lease liability for your governmental type funds 408 00:29:26,390 --> 00:29:27,530 went down. 409 00:29:31,230 --> 00:29:39,810 WRS and life insurance, OPEB, that's just the city's portion of the 410 00:29:39,810 --> 00:29:43,430 the allocator certain, every city or whoever's in that, 411 00:29:43,590 --> 00:29:45,310 WRS gets allocators certain dollar amount 412 00:29:45,310 --> 00:29:47,390 they have to record as a liability 413 00:29:47,390 --> 00:29:49,970 and sometimes with WRS it can be an asset. 414 00:29:50,530 --> 00:29:52,990 Like if you look back in 2022 is actually an asset 415 00:29:52,990 --> 00:29:53,950 at that time. 416 00:29:56,580 --> 00:29:59,140 Your old pad liability, that's just the city itself. 417 00:30:00,000 --> 00:30:08,960 That large change, back in 23 to 24, went from 1.4 million down to 800,000, and that was the change. 418 00:30:10,600 --> 00:30:17,520 And I think the plan itself, I think, retirees hired after 21, 23, but no longer be eligible for the benefit. 419 00:30:18,420 --> 00:30:19,740 The police department change. 420 00:30:21,180 --> 00:30:26,980 So that's why you see that decrease there. It's going to fluctuate a little bit here and there, just depending on the actual study. 421 00:30:26,980 --> 00:30:32,180 but that's why that large drop happened in 23 to 24 with that liability. 422 00:30:34,500 --> 00:30:40,000 The mortgage revenue bonds for business type, the plan payments were made on that just 423 00:30:40,000 --> 00:30:42,260 went down a little bit. 424 00:30:43,380 --> 00:30:49,020 Then there's a calculation of the bottom, your debt limit is calculated based off of your 425 00:30:49,020 --> 00:30:57,140 equalized valuation at 5% of it, so the city could borrow up to almost 70 million in general 426 00:30:57,140 --> 00:31:03,540 obligation notes or bonds, but right now you're only at 18.9 million and that's just adding 427 00:31:03,540 --> 00:31:09,160 up the general obligation notes from business type and governmental activities. Those two numbers 428 00:31:09,160 --> 00:31:19,000 combined is what makes the 18 million. It's 27% of your limitation or the debt limit 429 00:31:19,000 --> 00:31:25,420 is what you borrow on and so far. That's pretty consistent to what I see. May every city is a 430 00:31:25,420 --> 00:31:30,020 little different, but it's kind of in line. Would I see it other cities as well? 431 00:31:30,360 --> 00:31:34,360 But I've been working for other municipalities that do not have the equalized value and it's really 432 00:31:34,360 --> 00:31:39,460 difficult. You get up to that limit. It's the point of these big projects. So we're fortunate to 433 00:31:44,640 --> 00:31:44,820 be. 434 00:31:44,920 --> 00:31:48,880 That's all. All the notes I had. I don't know if there are any other questions at all. 435 00:31:53,620 --> 00:32:00,480 And do you want him to come to the council, or are you do you feel comfortable, whatever you make for a recommendation? 436 00:32:01,240 --> 00:32:02,680 I feel comfortable. 437 00:32:03,780 --> 00:32:05,620 Lesbian wants to stick around and... 438 00:32:06,460 --> 00:32:06,720 Hang on. 439 00:32:06,740 --> 00:32:08,360 I'm okay enjoying the evening. 440 00:32:09,380 --> 00:32:12,680 That's what you guys appreciate you. 441 00:32:12,900 --> 00:32:15,340 One thing that did happen in the years, 442 00:32:16,480 --> 00:32:19,160 they lost one of their other lead auditors. 443 00:32:19,620 --> 00:32:20,760 I really, I missed him this year. 444 00:32:21,560 --> 00:32:29,580 Logan was really not the Madison is a great but Logan was really good I miss it. 445 00:32:29,580 --> 00:32:33,740 Yeah you've been with the firm for four years now he's working on a card dealership down on 446 00:32:33,740 --> 00:32:34,100 on OCO. 447 00:32:34,340 --> 00:32:35,800 Yeah yes it's a sold-up. 448 00:32:35,980 --> 00:32:36,660 It's a sold-up. 449 00:32:37,080 --> 00:32:38,120 It's a sold-up. 450 00:32:38,560 --> 00:32:39,360 To do what? 451 00:32:39,860 --> 00:32:40,500 To sell cars? 452 00:32:41,180 --> 00:32:43,660 No, I have these the finance. 453 00:32:44,560 --> 00:32:46,280 Man that's all the financing for the deal. 454 00:32:46,340 --> 00:32:47,160 We'll deal with the other ships. 455 00:32:47,620 --> 00:32:48,360 So, follow well. 456 00:32:49,000 --> 00:32:49,080 Yeah. 457 00:32:58,860 --> 00:32:59,820 I'm good. 458 00:33:00,180 --> 00:33:01,220 Any other discussion? 459 00:33:01,520 --> 00:33:02,400 Mark willor, are you good? 460 00:33:02,660 --> 00:33:03,580 I'm good. 461 00:33:04,440 --> 00:33:05,400 Just a little bit. 462 00:33:05,400 --> 00:33:05,740 Just a little bit. 463 00:33:06,200 --> 00:33:06,380 Just a little bit. 464 00:33:06,460 --> 00:33:06,880 I'm good. 465 00:33:08,960 --> 00:33:10,080 Something like that. 466 00:33:10,100 --> 00:33:11,680 Yeah, I'm going to use that number of cards. 467 00:33:12,040 --> 00:33:12,740 Use that number of cards. 468 00:33:14,860 --> 00:33:15,220 Yeah. 469 00:33:15,220 --> 00:33:16,500 In a 70, that's your 84. 470 00:33:20,620 --> 00:33:25,180 So then I think this committee is, if you feel comfortable on it, 471 00:33:25,180 --> 00:33:31,100 And that goes to the council and then the council actually approved the resolution and closes the bus. 472 00:33:31,100 --> 00:33:33,700 You have the wording for the motion. 473 00:33:33,800 --> 00:33:35,340 Uh-huh. 474 00:33:35,460 --> 00:33:43,580 Recommend the council acceptance of the comprehensive annual financial report for 2025 as presented by Clifton Larsson Allen. 475 00:33:43,620 --> 00:33:46,180 So, we have a motion. 476 00:33:46,480 --> 00:33:47,300 I'm second. 477 00:33:47,900 --> 00:33:49,780 In a second, all in favor say aye. 478 00:33:50,000 --> 00:33:50,380 Aye. 479 00:33:50,680 --> 00:33:50,760 Aye. 480 00:33:50,760 --> 00:33:51,300 Any opposed? 481 00:33:51,980 --> 00:33:52,440 Motion carries. 482 00:33:53,020 --> 00:33:53,560 Thank you again. 483 00:33:53,560 --> 00:33:59,140 Yeah, this is like a damn or it and yeah, the work you guys put on this really almost make it a lot of sense 484 00:33:59,140 --> 00:34:03,280 Thanks again. What you do. Thank you. Enjoy the evening. Hold the Bruce Peele 485 00:34:09,580 --> 00:34:13,700 Yeah, again, Tina. I think that was that's just just to be able to show here 486 00:34:13,700 --> 00:34:18,660 Yep, the adjustments of the difference is this is there. This is there like it makes sense 487 00:34:19,880 --> 00:34:21,500 Hey, stop the time through 488 00:34:29,560 --> 00:34:32,460 Well, we'll get to let the boss finish up this stuff here. 489 00:34:32,460 --> 00:34:34,400 Right, I'd say to him, and you miscellaneous. 490 00:34:35,800 --> 00:34:40,540 Well, I just want to say thank you, Ketina, and her in our team for all their work on this. 491 00:34:41,100 --> 00:34:46,680 So, it takes quite a bit of work to get to this point, and you know, and so I just want to say thank you. 492 00:34:46,700 --> 00:34:48,500 Thank you. 493 00:34:49,060 --> 00:34:50,600 It's always something, you know? 494 00:34:51,720 --> 00:34:52,360 I'm just finished. 495 00:34:52,540 --> 00:34:54,360 I'm working in three years right now. 496 00:34:54,960 --> 00:34:58,780 We're working in just finished 25, working in 26 and working in 26. 497 00:34:58,780 --> 00:34:59,980 That was budget for like 498 00:35:00,000 --> 00:35:02,500 Sometimes I rate the wrong year down, I'm like, Whoops! 499 00:35:04,640 --> 00:35:05,840 Thank you. 500 00:35:07,320 --> 00:35:09,160 And at that, we'll take a motion for adjourment. 501 00:35:09,340 --> 00:35:12,400 Let's move to adjourned at 537. 502 00:35:13,580 --> 00:35:14,220 Roll a second. 503 00:35:14,560 --> 00:35:16,120 Motion, second, all in favor, say aye. 504 00:35:16,460 --> 00:35:16,680 Aye. 505 00:35:17,780 --> 00:35:18,580 Very adjourned. 506 00:35:18,720 --> 00:35:19,140 Thanks again. 507 00:35:20,080 --> 00:35:21,020 So, tell me, please.