1 00:00:00,560 --> 00:00:08,960 Yeah, saved it. All right, time is now about 2 00:00:06,000 --> 00:00:16,280 6:15 and a call to order this council workshop September 2nd, 2026. Begin with 3 00:00:12,240 --> 00:00:16,280 the pledge of allegiance. Please rise. 4 00:00:17,119 --> 00:00:26,080 » I aliance to the flag of the United States of America and to the republic 5 00:00:22,560 --> 00:00:31,199 for it stands one nation indivisibley 6 00:00:27,760 --> 00:00:31,199 and justice for all. 7 00:00:32,960 --> 00:00:37,760 First is an opportunity for citizens to be heard. Is there anybody here who 8 00:00:36,239 --> 00:00:43,680 would like to be heard? Member of the public? Anybody by by Zoom? Okay. Then 9 00:00:41,120 --> 00:00:47,399 we'll move on to presentations. We have uh our audit update. 10 00:01:39,439 --> 00:01:42,439 First 11 00:01:46,560 --> 00:01:50,439 details on the next slide. 12 00:02:17,680 --> 00:02:23,840 I'm sorry. Okay. Sorry about that. A single audit was performed this year. Uh 13 00:02:22,480 --> 00:02:28,080 just meaning that the total federal dollar expenditures exceeded $1 million. 14 00:02:26,560 --> 00:02:31,840 And because of that, we had to take a look at the uh single audit and the 15 00:02:29,920 --> 00:02:35,280 expenditures over selected federal programs. 16 00:02:33,680 --> 00:02:39,120 Diving into some of the additional details on the independent auditors 17 00:02:37,040 --> 00:02:42,959 report. Again, this is where we as your independent auditors issue our opinion 18 00:02:40,959 --> 00:02:45,840 on your financial statements. And essentially what that means is that we 19 00:02:44,319 --> 00:02:49,599 feel the financial statements are materially correct and can be relied 20 00:02:47,599 --> 00:02:53,120 upon. What it is not, it's not an opinion on internal controls, nor is an 21 00:02:51,760 --> 00:02:56,319 opinion or results of a fraud investigation. I know sometimes people 22 00:02:54,560 --> 00:03:00,000 hear the word audit. They think that we look at every transaction although it 23 00:02:58,239 --> 00:03:03,599 may feel like it's adjacent at times. We do not look at every transaction. We 24 00:03:01,519 --> 00:03:06,560 perform sampling to ultimately perform the procedures and issue the opinion 25 00:03:05,120 --> 00:03:10,239 that the financial statements are materially correct. Also just made 26 00:03:08,720 --> 00:03:14,159 reference to the management discussion and analysis. This is included in the 27 00:03:12,400 --> 00:03:17,440 financial statements and does provide a narrative analysis of the financial 28 00:03:15,920 --> 00:03:21,920 statements that is prepared internally by management and reviewed as part of 29 00:03:19,440 --> 00:03:26,239 our audit. On the next page, it just turns your attention now uh to some of 30 00:03:23,760 --> 00:03:28,800 the general fund. A lot of numbers here, a lot of columns. So, we'll start with 31 00:03:27,519 --> 00:03:35,040 the general fund. These are the revenue and the expenditures. It takes 2024 32 00:03:31,280 --> 00:03:38,799 actual, has 2025 actual, compares the 25 actual to the final budgeted amount. So, 33 00:03:37,120 --> 00:03:44,080 I'm going to focus on a couple variances here, but starting in the total revenues 34 00:03:41,120 --> 00:03:47,920 for the year, about 13.3 million. That is less than last year, which was right 35 00:03:45,680 --> 00:03:52,480 around 16.1 million or a decrease of around 17%. Nothing alarming there. Uh 36 00:03:51,040 --> 00:03:56,080 the fourth item from the bottom, intergovernmental, those are your grant 37 00:03:54,239 --> 00:03:59,120 revenues. Obviously, they can fluctuate from year to year and depending on when 38 00:03:57,599 --> 00:04:03,280 they're received and when they're spent. Uh that's the main fluctuation there in 39 00:04:01,280 --> 00:04:07,120 the revenue category. Everything else fairly comparable and pretty much in 40 00:04:05,040 --> 00:04:11,360 line with the budgeted amounts for your total revenues. Moving down to the total 41 00:04:09,599 --> 00:04:16,799 expenditures for the year, just under $10.5 million compared to about $9.9 42 00:04:14,480 --> 00:04:20,639 million or a 6% increase compared to last year. So again, overall fairly 43 00:04:18,479 --> 00:04:24,400 comparable. And then on the bottom you have your other financing sources and 44 00:04:22,320 --> 00:04:27,919 uses. Again the largest fluctuation are your transfers in and out just depending 45 00:04:26,000 --> 00:04:32,560 on the transfers made to any e other funds during the year. Uh but literal 46 00:04:30,240 --> 00:04:37,360 bottom line for 2025 there was a positive change in fund balance of about 47 00:04:34,479 --> 00:04:42,240 $3.6 million. Last year it was $2 million and you had actually budgeted a 48 00:04:39,600 --> 00:04:46,479 deficit of $938,000. So, a positive variance there of about $4.5 million in 49 00:04:44,960 --> 00:04:50,560 comparison to the budget mainly due to the expenditures being less again mainly 50 00:04:48,720 --> 00:04:55,680 because of the grant revenues and expenditures and not spending of those 51 00:04:52,240 --> 00:04:59,199 funds. On the next page, I'll just turn your attention now briefly to the fund 52 00:04:57,440 --> 00:05:03,680 balance. So, these categories are prescribed uh for by Gazsby or the 53 00:05:01,680 --> 00:05:07,440 government accounting standards board highlighting committed fund balance 54 00:05:05,360 --> 00:05:10,960 about $517,000 and assigned fund balance. The majority 55 00:05:09,440 --> 00:05:15,360 of the assigned fund balance actually looks at 2026. If you have a budget 56 00:05:13,440 --> 00:05:18,880 deficit, that's gets assigned. Basically, you're setting that aside to 57 00:05:17,280 --> 00:05:22,400 be used in the next fiscal year. So, that's the majority of the assigned fund 58 00:05:20,479 --> 00:05:25,440 balance. And then the unassigned fund balance, if it doesn't meet one of those 59 00:05:23,759 --> 00:05:29,199 previous categories, falls down your unassigned or available to be spent. You 60 00:05:27,520 --> 00:05:33,759 can see a very healthy unassigned fund balance about $15.5 million. If you take 61 00:05:32,240 --> 00:05:38,479 that as a percentage of the annual expenditures, almost 150%. So again, 62 00:05:36,639 --> 00:05:42,720 very healthy reserves within the general fund. Also highlights the fund balance 63 00:05:40,800 --> 00:05:46,639 in your capital projects fund, highway aid fund, and asset forfeite. Those are 64 00:05:44,880 --> 00:05:51,600 restricted for those specific purposes. So that's why they are included there on 65 00:05:48,800 --> 00:05:55,680 the restricted line item. Turning your attention now to the utility side of 66 00:05:53,280 --> 00:05:59,840 things or the proprietary fund. Won't dive into too many details here uh but 67 00:05:58,000 --> 00:06:03,360 did just want to highlight again when you look at the literal bottom line, the 68 00:06:01,440 --> 00:06:07,199 change in net position. Each of these funds except for the parking fund did 69 00:06:05,120 --> 00:06:11,440 have a positive change in that position, meaning the total revenues exceeded the 70 00:06:09,039 --> 00:06:15,120 total expenses. Again, the outlier being the parking fund. But did just want to 71 00:06:13,360 --> 00:06:19,520 highlight included in the operating expenses here is your depreciation 72 00:06:17,039 --> 00:06:22,720 expense. So, obviously a non-cash item, but is included there in the expense 73 00:06:21,120 --> 00:06:26,720 side of things and that's included there in your operating expenses. But again, I 74 00:06:24,880 --> 00:06:31,759 think a positive note to see mostly a positive change in that position across 75 00:06:28,880 --> 00:06:35,039 the board. On the next page, I'll just turn your attention now to the note 76 00:06:33,360 --> 00:06:38,800 number seven within the footnotes for your pension plans. I like to include 77 00:06:37,039 --> 00:06:42,639 these details because this looks at the pension plans, looks at the total future 78 00:06:40,560 --> 00:06:46,479 liability for each of those, compares it to the assets that are set aside. And a 79 00:06:44,880 --> 00:06:50,800 very positive note that both of your pension plans, uh, the non-uniform and 80 00:06:48,560 --> 00:06:55,759 the police are currently fully funded and actually a little bit more than 81 00:06:51,759 --> 00:06:59,360 fully funded. You can see 107% and 115% respectively for each of those plans. 82 00:06:57,199 --> 00:07:03,599 So, a very positive note again to have those plans fully funded. 83 00:07:01,759 --> 00:07:06,800 I did pull out one section of the statistical section uh within your 84 00:07:05,280 --> 00:07:10,319 financial statements and it's your debt margin. The statistical schedule 85 00:07:08,720 --> 00:07:13,840 actually shows 10 years. I couldn't quite fit all that here on one slide. 86 00:07:12,000 --> 00:07:18,479 So, what I tried to do was take 10 years ago. The current year and kind of the 87 00:07:16,080 --> 00:07:21,680 middle point there for 2020. And you can see your debt limit is obviously 88 00:07:19,919 --> 00:07:25,280 increased over that time period and the amount of debt that you have incurred 89 00:07:23,280 --> 00:07:29,039 has also increased. But if you look at the total amount of the debt applicable 90 00:07:26,880 --> 00:07:32,400 to the debt limit as a percent, fairly comparable over that time period. So 91 00:07:30,639 --> 00:07:36,720 obviously you've issued debt over the past couple of years, nothing in 2025. 92 00:07:34,639 --> 00:07:42,800 Uh but yes, still less than half of the total debt limit uh for the bureau. Very 93 00:07:38,960 --> 00:07:46,319 consistently right around 46%. Moving on now to the single audit. 94 00:07:44,800 --> 00:07:50,800 Again, this year the total federal expenditures amongst all the federal 95 00:07:48,000 --> 00:07:55,599 programs was just under $2 million. The threshold for a single audit was raised 96 00:07:52,800 --> 00:07:59,360 this year. It went from $750,000 to a million dollar. Obviously, you still 97 00:07:56,960 --> 00:08:02,560 exceeded that either way. But the program that we tested was the highway 98 00:08:01,120 --> 00:08:06,080 planning and construction grant. It was the largest federal grant that you had. 99 00:08:04,560 --> 00:08:09,840 And I'm happy to report that there were no findings. Again, we look at internal 100 00:08:07,680 --> 00:08:13,280 controls over compliance and compliance over those federal dollars and happy to 101 00:08:11,840 --> 00:08:16,720 report that there were no findings related to the program that we tested, 102 00:08:14,960 --> 00:08:20,639 the highway planning and construction grant. 103 00:08:18,879 --> 00:08:24,319 The next document that we have is what's known as our management letter. Uh these 104 00:08:22,560 --> 00:08:28,080 include any summary of new standards that will affect the bureau's financial 105 00:08:25,759 --> 00:08:30,800 statements in the future. Uh there's one uh that will affect the financial 106 00:08:29,120 --> 00:08:34,080 statements mainly just classifications in the near term and a couple others 107 00:08:32,560 --> 00:08:36,800 that'll be applicable over future years but those are detailed out in the 108 00:08:35,519 --> 00:08:40,240 management letter and I won't bore you with those details here this evening. Uh 109 00:08:38,640 --> 00:08:43,039 but did just want to highlight you here just a couple of graphical analysis that 110 00:08:42,000 --> 00:08:47,519 we're going to cover. They're included in your separate management letter and 111 00:08:44,959 --> 00:08:51,120 not in the acer itself. So the first graph that we have uh just shows some 112 00:08:49,519 --> 00:08:55,120 trends over time from a cash and investment comparison standpoint by 113 00:08:53,040 --> 00:08:59,760 fund. So you can see the general fund again still has about $27 million at the 114 00:08:57,519 --> 00:09:04,160 end of 2025. A slight reduction compared to the previous year. While your capital 115 00:09:01,760 --> 00:09:07,519 projects fund has about $1 million. Nothing surprising there is that cash 116 00:09:05,680 --> 00:09:11,040 balance decreases as you obviously are spending on those projects. You issued 117 00:09:09,040 --> 00:09:14,640 that last year and spend those down and that cash balance comes down as those 118 00:09:12,640 --> 00:09:18,320 projects are spent. and all the other funds. Again, some slight increases 119 00:09:16,240 --> 00:09:21,760 within your utility funds, uh, but again, fairly comparable across each of 120 00:09:20,240 --> 00:09:26,560 those years. And again, very healthy cash balances for each of the respective 121 00:09:24,000 --> 00:09:30,320 funds. The next graph just looks at a revenue comparison. And again, you can 122 00:09:28,720 --> 00:09:34,080 see a couple line items that had some fluctuations, but for the most part, 123 00:09:31,920 --> 00:09:37,360 fairly consistent. Starting with the taxes on the lefth hand side, this is 124 00:09:35,839 --> 00:09:42,000 all of your taxes. So, it includes earned income taxes, real estate taxes, 125 00:09:39,760 --> 00:09:45,839 as well as your realy transfer tax. In 2024, you had a very significant realy 126 00:09:44,399 --> 00:09:49,200 transfer tax. Again, that kind of returned down to a normal level, but 127 00:09:47,760 --> 00:09:53,440 that's why you're seeing the decrease. 2024 was the outlier when you received 128 00:09:51,600 --> 00:09:57,040 the additional realy transfer tax in 2024. So, nothing alarming by seeing 129 00:09:55,680 --> 00:10:01,279 that decrease. Again, all the other taxes had increased in comparison to the 130 00:09:59,120 --> 00:10:04,720 previous year. And I referenced earlier kind of right in the middle of the 131 00:10:02,399 --> 00:10:07,839 middle, the intergovernmental category. Those are your grants. Again, that can 132 00:10:06,320 --> 00:10:11,279 obviously fluctuate from year to year depending on when the grants are spent. 133 00:10:09,680 --> 00:10:15,120 uh when you recognize the associated revenue and again everything else fairly 134 00:10:13,360 --> 00:10:19,200 comparable across the board from a revenue comparison standpoint. Turning 135 00:10:17,519 --> 00:10:23,120 your attention now to the expense side of things again when you look across 136 00:10:21,120 --> 00:10:26,640 this you can see very consistent amounts across the board of some minor 137 00:10:24,640 --> 00:10:31,279 fluctuations again increases in public safety as well as your water and sewer 138 00:10:29,200 --> 00:10:36,399 funds but for the most part again very comparable expenses uh across the board. 139 00:10:34,720 --> 00:10:40,240 The next graph and last graph that we have is just a change in fund balance or 140 00:10:38,240 --> 00:10:43,519 net position. So this shows each fund. I know we saw this for the general fund as 141 00:10:41,839 --> 00:10:47,600 well as your water, sewer, parking, and storm water funds already, but over the 142 00:10:45,600 --> 00:10:51,760 past five years, again, in the capital projects fund, any year that you incur 143 00:10:49,760 --> 00:10:54,399 debt, that's revenue. And then as you spend it, it's expensed. And that 144 00:10:53,040 --> 00:10:57,760 doesn't always match up from year to year. So that's why you're seeing the 145 00:10:55,600 --> 00:11:01,360 big swings there uh within your capital projects fund. But again, I think a very 146 00:10:59,839 --> 00:11:04,480 positive note as you see each of these graphs and each of these funds for the 147 00:11:02,880 --> 00:11:07,920 most part a positive change or a positive change in fund balance in that 148 00:11:06,000 --> 00:11:12,560 position for each of those funds over that time period again with capital 149 00:11:09,360 --> 00:11:15,360 projects fund being the outlier. The other letter that we have related to 150 00:11:14,079 --> 00:11:18,000 our audit is what's known as our communication with those charged with 151 00:11:16,720 --> 00:11:21,279 governance. Had there been any significant issues in completing the 152 00:11:19,440 --> 00:11:24,399 audit or disagreements with management, we'd have to report on those here in 153 00:11:22,720 --> 00:11:27,360 this letter. I'm happy to report there were no such issues or disagreements. So 154 00:11:26,079 --> 00:11:31,600 that's why we just considered our standard communications letter. So in 155 00:11:29,920 --> 00:11:34,560 summary, again, I think very positive results stemming from the audit this 156 00:11:33,279 --> 00:11:37,920 year. We were able to issue an unmodified audit opinion, which is the 157 00:11:36,320 --> 00:11:41,200 best opinion that we can issue. I'm happy to report that there were no 158 00:11:39,279 --> 00:11:44,560 findings related to the audit. And again, just to reiterate positive 159 00:11:42,720 --> 00:11:49,360 changes in fund balance and position of most of the funds and again we're able 160 00:11:46,480 --> 00:11:52,399 to perform the single audit over the um transportation grant and happy to report 161 00:11:50,880 --> 00:11:56,720 that there were no findings related to that as well. 162 00:11:54,160 --> 00:12:00,240 I know that was a lot of information. Uh I hope somewhat fairly quickly for you. 163 00:11:58,480 --> 00:12:04,959 Uh but I'm happy to answer any questions either from the presentation or from the 164 00:12:02,000 --> 00:12:08,440 actual audit documents themselves. >> There any questions? 165 00:12:09,519 --> 00:12:18,320 » Just a quick question. Um is the reason for the 166 00:12:15,200 --> 00:12:22,160 um parking fund the same as the capital projects in terms of how you calculate 167 00:12:20,560 --> 00:12:25,920 change? Well, there wasn't any debt that was 168 00:12:23,760 --> 00:12:29,680 issued associated with the parking fund. So, that's more operational where it's 169 00:12:27,519 --> 00:12:34,560 just the revenue uh did not exceed the expenses within the parking fund. But 170 00:12:32,560 --> 00:12:38,560 again, depreciation is included there in the parking fund. So, that's a non-cash 171 00:12:36,240 --> 00:12:41,279 item. Um, so that's included in the expenses. Without the depreciation, it 172 00:12:40,240 --> 00:12:44,240 would have been a surplus. I don't remember the exact amount. Um, but 173 00:12:42,959 --> 00:12:51,040 without the depreciation, it would have been a positive amount. 174 00:12:47,760 --> 00:12:52,720 » Anything else? Thank you. 175 00:12:51,519 --> 00:12:55,600 » Well, thank you very much for your time this evening. Uh we appreciate doing a 176 00:12:54,320 --> 00:12:58,480 service for the burough. If you have any questions after tonight, uh please feel 177 00:12:57,040 --> 00:13:00,639 free to either contact me or filter those through management. We'd be happy 178 00:12:59,600 --> 00:13:04,320 to help. >> Thank you very much. 179 00:13:01,360 --> 00:13:09,600 » Thanks. Good evening. >> Okay, we'll move on to tabled items. Um 180 00:13:06,959 --> 00:13:15,120 and I think we're ready to bring this one off t the table. So, we would have 181 00:13:11,839 --> 00:13:19,600 to start with a motion to uh remove uh from the table the proposed 182 00:13:17,760 --> 00:13:25,279 updated guidelines. Is there such a motion? 183 00:13:20,959 --> 00:13:29,279 » Um I'll move to remove the um updated guidelines for the outside agency 184 00:13:26,800 --> 00:13:31,920 funding process uh from from the table for additional discussion. 185 00:13:30,480 --> 00:13:34,160 » It's a motion. Is there a second? >> Second. 186 00:13:32,480 --> 00:13:37,200 » Second by councelor Melon. I'll call the question. All those in favor can signify 187 00:13:35,600 --> 00:13:44,800 by saying I. >> Those say motion carries. So that's now 188 00:13:40,880 --> 00:13:49,200 off the table and up for discussion. Um we can we can have a motion on it at 189 00:13:47,040 --> 00:13:52,560 this point. Um but I think really tonight we're just uh we're just going 190 00:13:50,959 --> 00:13:58,000 to have some discussion then kick it to to next week. Is that fair to say? Okay. 191 00:13:55,920 --> 00:14:03,040 Um everybody I think we've had some I keep 192 00:14:00,959 --> 00:14:06,959 looking at you Kate because um you know you had some some good input one. I just 193 00:14:05,519 --> 00:14:13,600 want to thank everybody for their efforts in um and working to kind of 194 00:14:09,839 --> 00:14:18,880 flesh this out. Um thank you for um taking my um comments into 195 00:14:16,480 --> 00:14:25,839 consideration. I really do think that this um kind of better suits the needs 196 00:14:22,880 --> 00:14:30,880 and it's a little bit more flexible um and and also it kind of helps us because 197 00:14:28,079 --> 00:14:36,240 it covers a little bit more in depth the criteria that we are going to use in in 198 00:14:33,199 --> 00:14:41,320 order to to make our decisions. So I I appreciate your efforts and thank you 199 00:14:37,760 --> 00:14:41,320 very much for that. 200 00:14:41,440 --> 00:14:46,399 » Are we all at a at a place we're ready to move this forward to the agenda next 201 00:14:45,199 --> 00:14:50,800 week? >> Okay. We do that by consent. I don't see 202 00:14:48,959 --> 00:14:56,705 any objections. Okay, we'll have it on the agenda next week. Okay, 203 00:14:54,720 --> 00:15:01,760 that's the only item in business. [laughter] 204 00:14:58,560 --> 00:15:07,560 I'm sure everybody's disappointed. I think I I made this meeting twice as 205 00:15:03,600 --> 00:15:07,560 long as [laughter] it needed to be. 206 00:15:08,720 --> 00:15:16,000 Um, is there any new new business to be to be heard for a manager or anything? 207 00:15:13,600 --> 00:15:23,399 No. Okay. Um, is there any public comment? Do we have anybody by Zoom? 208 00:15:18,880 --> 00:15:23,399 Okay, we are adjourned. Thank you all.