[0:00] Yeah,
saved it. All right, time is now about
[0:06] 6:15 and a call to order this council
workshop September 2nd, 2026. Begin with
[0:12] the pledge of allegiance. Please rise.
[0:17] » I aliance to the flag of the United
States of America and to the republic
[0:22] for it stands one nation
indivisibley
[0:27] and justice for all.
[0:32] First is an opportunity for citizens to
be heard. Is there anybody here who
[0:36] would like to be heard? Member of the
public? Anybody by by Zoom? Okay. Then
[0:41] we'll move on to presentations. We have
uh our audit update.
[1:39] First
[1:46] details on the next slide.
[2:17] I'm sorry. Okay. Sorry about that. A
single audit was performed this year. Uh
[2:22] just meaning that the total federal
dollar expenditures exceeded $1 million.
[2:26] And because of that, we had to take a
look at the uh single audit and the
[2:29] expenditures over selected federal
programs.
[2:33] Diving into some of the additional
details on the independent auditors
[2:37] report. Again, this is where we as your
independent auditors issue our opinion
[2:40] on your financial statements. And
essentially what that means is that we
[2:44] feel the financial statements are
materially correct and can be relied
[2:47] upon. What it is not, it's not an
opinion on internal controls, nor is an
[2:51] opinion or results of a fraud
investigation. I know sometimes people
[2:54] hear the word audit. They think that we
look at every transaction although it
[2:58] may feel like it's adjacent at times. We
do not look at every transaction. We
[3:01] perform sampling to ultimately perform
the procedures and issue the opinion
[3:05] that the financial statements are
materially correct. Also just made
[3:08] reference to the management discussion
and analysis. This is included in the
[3:12] financial statements and does provide a
narrative analysis of the financial
[3:15] statements that is prepared internally
by management and reviewed as part of
[3:19] our audit. On the next page, it just
turns your attention now uh to some of
[3:23] the general fund. A lot of numbers here,
a lot of columns. So, we'll start with
[3:27] the general fund. These are the revenue
and the expenditures. It takes 2024
[3:31] actual, has 2025 actual, compares the 25
actual to the final budgeted amount. So,
[3:37] I'm going to focus on a couple variances
here, but starting in the total revenues
[3:41] for the year, about 13.3 million. That
is less than last year, which was right
[3:45] around 16.1 million or a decrease of
around 17%. Nothing alarming there. Uh
[3:51] the fourth item from the bottom,
intergovernmental, those are your grant
[3:54] revenues. Obviously, they can fluctuate
from year to year and depending on when
[3:57] they're received and when they're spent.
Uh that's the main fluctuation there in
[4:01] the revenue category. Everything else
fairly comparable and pretty much in
[4:05] line with the budgeted amounts for your
total revenues. Moving down to the total
[4:09] expenditures for the year, just under
$10.5 million compared to about $9.9
[4:14] million or a 6% increase compared to
last year. So again, overall fairly
[4:18] comparable. And then on the bottom you
have your other financing sources and
[4:22] uses. Again the largest fluctuation are
your transfers in and out just depending
[4:26] on the transfers made to any e other
funds during the year. Uh but literal
[4:30] bottom line for 2025 there was a
positive change in fund balance of about
[4:34] $3.6 million. Last year it was $2
million and you had actually budgeted a
[4:39] deficit of $938,000. So, a positive
variance there of about $4.5 million in
[4:44] comparison to the budget mainly due to
the expenditures being less again mainly
[4:48] because of the grant revenues and
expenditures and not spending of those
[4:52] funds. On the next page, I'll just turn
your attention now briefly to the fund
[4:57] balance. So, these categories are
prescribed uh for by Gazsby or the
[5:01] government accounting standards board
highlighting committed fund balance
[5:05] about $517,000
and assigned fund balance. The majority
[5:09] of the assigned fund balance actually
looks at 2026. If you have a budget
[5:13] deficit, that's gets assigned.
Basically, you're setting that aside to
[5:17] be used in the next fiscal year. So,
that's the majority of the assigned fund
[5:20] balance. And then the unassigned fund
balance, if it doesn't meet one of those
[5:23] previous categories, falls down your
unassigned or available to be spent. You
[5:27] can see a very healthy unassigned fund
balance about $15.5 million. If you take
[5:32] that as a percentage of the annual
expenditures, almost 150%. So again,
[5:36] very healthy reserves within the general
fund. Also highlights the fund balance
[5:40] in your capital projects fund, highway
aid fund, and asset forfeite. Those are
[5:44] restricted for those specific purposes.
So that's why they are included there on
[5:48] the restricted line item. Turning your
attention now to the utility side of
[5:53] things or the proprietary fund. Won't
dive into too many details here uh but
[5:58] did just want to highlight again when
you look at the literal bottom line, the
[6:01] change in net position. Each of these
funds except for the parking fund did
[6:05] have a positive change in that position,
meaning the total revenues exceeded the
[6:09] total expenses. Again, the outlier being
the parking fund. But did just want to
[6:13] highlight included in the operating
expenses here is your depreciation
[6:17] expense. So, obviously a non-cash item,
but is included there in the expense
[6:21] side of things and that's included there
in your operating expenses. But again, I
[6:24] think a positive note to see mostly a
positive change in that position across
[6:28] the board. On the next page, I'll just
turn your attention now to the note
[6:33] number seven within the footnotes for
your pension plans. I like to include
[6:37] these details because this looks at the
pension plans, looks at the total future
[6:40] liability for each of those, compares it
to the assets that are set aside. And a
[6:44] very positive note that both of your
pension plans, uh, the non-uniform and
[6:48] the police are currently fully funded
and actually a little bit more than
[6:51] fully funded. You can see 107% and 115%
respectively for each of those plans.
[6:57] So, a very positive note again to have
those plans fully funded.
[7:01] I did pull out one section of the
statistical section uh within your
[7:05] financial statements and it's your debt
margin. The statistical schedule
[7:08] actually shows 10 years. I couldn't
quite fit all that here on one slide.
[7:12] So, what I tried to do was take 10 years
ago. The current year and kind of the
[7:16] middle point there for 2020. And you can
see your debt limit is obviously
[7:19] increased over that time period and the
amount of debt that you have incurred
[7:23] has also increased. But if you look at
the total amount of the debt applicable
[7:26] to the debt limit as a percent, fairly
comparable over that time period. So
[7:30] obviously you've issued debt over the
past couple of years, nothing in 2025.
[7:34] Uh but yes, still less than half of the
total debt limit uh for the bureau. Very
[7:38] consistently right around 46%.
Moving on now to the single audit.
[7:44] Again, this year the total federal
expenditures amongst all the federal
[7:48] programs was just under $2 million. The
threshold for a single audit was raised
[7:52] this year. It went from $750,000 to a
million dollar. Obviously, you still
[7:56] exceeded that either way. But the
program that we tested was the highway
[8:01] planning and construction grant. It was
the largest federal grant that you had.
[8:04] And I'm happy to report that there were
no findings. Again, we look at internal
[8:07] controls over compliance and compliance
over those federal dollars and happy to
[8:11] report that there were no findings
related to the program that we tested,
[8:14] the highway planning and construction
grant.
[8:18] The next document that we have is what's
known as our management letter. Uh these
[8:22] include any summary of new standards
that will affect the bureau's financial
[8:25] statements in the future. Uh there's one
uh that will affect the financial
[8:29] statements mainly just classifications
in the near term and a couple others
[8:32] that'll be applicable over future years
but those are detailed out in the
[8:35] management letter and I won't bore you
with those details here this evening. Uh
[8:38] but did just want to highlight you here
just a couple of graphical analysis that
[8:42] we're going to cover. They're included
in your separate management letter and
[8:44] not in the acer itself. So the first
graph that we have uh just shows some
[8:49] trends over time from a cash and
investment comparison standpoint by
[8:53] fund. So you can see the general fund
again still has about $27 million at the
[8:57] end of 2025. A slight reduction compared
to the previous year. While your capital
[9:01] projects fund has about $1 million.
Nothing surprising there is that cash
[9:05] balance decreases as you obviously are
spending on those projects. You issued
[9:09] that last year and spend those down and
that cash balance comes down as those
[9:12] projects are spent. and all the other
funds. Again, some slight increases
[9:16] within your utility funds, uh, but
again, fairly comparable across each of
[9:20] those years. And again, very healthy
cash balances for each of the respective
[9:24] funds. The next graph just looks at a
revenue comparison. And again, you can
[9:28] see a couple line items that had some
fluctuations, but for the most part,
[9:31] fairly consistent. Starting with the
taxes on the lefth hand side, this is
[9:35] all of your taxes. So, it includes
earned income taxes, real estate taxes,
[9:39] as well as your realy transfer tax. In
2024, you had a very significant realy
[9:44] transfer tax. Again, that kind of
returned down to a normal level, but
[9:47] that's why you're seeing the decrease.
2024 was the outlier when you received
[9:51] the additional realy transfer tax in
2024. So, nothing alarming by seeing
[9:55] that decrease. Again, all the other
taxes had increased in comparison to the
[9:59] previous year. And I referenced earlier
kind of right in the middle of the
[10:02] middle, the intergovernmental category.
Those are your grants. Again, that can
[10:06] obviously fluctuate from year to year
depending on when the grants are spent.
[10:09] uh when you recognize the associated
revenue and again everything else fairly
[10:13] comparable across the board from a
revenue comparison standpoint. Turning
[10:17] your attention now to the expense side
of things again when you look across
[10:21] this you can see very consistent amounts
across the board of some minor
[10:24] fluctuations again increases in public
safety as well as your water and sewer
[10:29] funds but for the most part again very
comparable expenses uh across the board.
[10:34] The next graph and last graph that we
have is just a change in fund balance or
[10:38] net position. So this shows each fund. I
know we saw this for the general fund as
[10:41] well as your water, sewer, parking, and
storm water funds already, but over the
[10:45] past five years, again, in the capital
projects fund, any year that you incur
[10:49] debt, that's revenue. And then as you
spend it, it's expensed. And that
[10:53] doesn't always match up from year to
year. So that's why you're seeing the
[10:55] big swings there uh within your capital
projects fund. But again, I think a very
[10:59] positive note as you see each of these
graphs and each of these funds for the
[11:02] most part a positive change or a
positive change in fund balance in that
[11:06] position for each of those funds over
that time period again with capital
[11:09] projects fund being the outlier.
The other letter that we have related to
[11:14] our audit is what's known as our
communication with those charged with
[11:16] governance. Had there been any
significant issues in completing the
[11:19] audit or disagreements with management,
we'd have to report on those here in
[11:22] this letter. I'm happy to report there
were no such issues or disagreements. So
[11:26] that's why we just considered our
standard communications letter. So in
[11:29] summary, again, I think very positive
results stemming from the audit this
[11:33] year. We were able to issue an
unmodified audit opinion, which is the
[11:36] best opinion that we can issue. I'm
happy to report that there were no
[11:39] findings related to the audit. And
again, just to reiterate positive
[11:42] changes in fund balance and position of
most of the funds and again we're able
[11:46] to perform the single audit over the um
transportation grant and happy to report
[11:50] that there were no findings related to
that as well.
[11:54] I know that was a lot of information. Uh
I hope somewhat fairly quickly for you.
[11:58] Uh but I'm happy to answer any questions
either from the presentation or from the
[12:02] actual audit documents themselves.
>> There any questions?
[12:09] » Just a quick question. Um is the reason
for the
[12:15] um parking fund the same as the capital
projects in terms of how you calculate
[12:20] change?
Well, there wasn't any debt that was
[12:23] issued associated with the parking fund.
So, that's more operational where it's
[12:27] just the revenue uh did not exceed the
expenses within the parking fund. But
[12:32] again, depreciation is included there in
the parking fund. So, that's a non-cash
[12:36] item. Um, so that's included in the
expenses. Without the depreciation, it
[12:40] would have been a surplus. I don't
remember the exact amount. Um, but
[12:42] without the depreciation, it would have
been a positive amount.
[12:47] » Anything else?
Thank you.
[12:51] » Well, thank you very much for your time
this evening. Uh we appreciate doing a
[12:54] service for the burough. If you have any
questions after tonight, uh please feel
[12:57] free to either contact me or filter
those through management. We'd be happy
[12:59] to help.
>> Thank you very much.
[13:01] » Thanks. Good evening.
>> Okay, we'll move on to tabled items. Um
[13:06] and I think we're ready to bring this
one off t the table. So, we would have
[13:11] to start with a motion to
uh remove uh from the table the proposed
[13:17] updated guidelines. Is there such a
motion?
[13:20] » Um I'll move to remove the um updated
guidelines for the outside agency
[13:26] funding process uh from from the table
for additional discussion.
[13:30] » It's a motion. Is there a second?
>> Second.
[13:32] » Second by councelor Melon. I'll call the
question. All those in favor can signify
[13:35] by saying I.
>> Those say motion carries. So that's now
[13:40] off the table and up for discussion. Um
we can we can have a motion on it at
[13:47] this point. Um but I think really
tonight we're just uh we're just going
[13:50] to have some discussion then kick it to
to next week. Is that fair to say? Okay.
[13:55] Um
everybody I think we've had some I keep
[14:00] looking at you Kate because um you know
you had some some good input one. I just
[14:05] want to thank everybody for their
efforts in um and working to kind of
[14:09] flesh this out. Um thank you for um
taking my um comments into
[14:16] consideration. I really do think that
this um kind of better suits the needs
[14:22] and it's a little bit more flexible um
and and also it kind of helps us because
[14:28] it covers a little bit more in depth the
criteria that we are going to use in in
[14:33] order to to make our decisions. So I I
appreciate your efforts and thank you
[14:37] very much for that.
[14:41] » Are we all at a at a place we're ready
to move this forward to the agenda next
[14:45] week?
>> Okay. We do that by consent. I don't see
[14:48] any objections. Okay, we'll have it on
the agenda next week. Okay,
[14:54] that's the only item in business.
[laughter]
[14:58] I'm sure everybody's disappointed.
I think I I made this meeting twice as
[15:03] long as [laughter] it needed to be.
[15:08] Um, is there any new new business to be
to be heard for a manager or anything?
[15:13] No. Okay. Um, is there any public
comment? Do we have anybody by Zoom?
[15:18] Okay, we are adjourned. Thank you all.