[This transcript was generated automatically from audio using AI and hasn't been reviewed by a person -- it can contain mistakes, including plausible-sounding sentences that were never actually said. Treat it as a starting point, not a verbatim record.]

[0:00] What we have to roll in here, we're sure that there's not really a long meeting to present a provisioning piece of it. So what there's any additions or relations to the agenda.
[0:15] Hearing none, motion to approve the agenda has presented.
[0:18] fifteen to seven to seven.
[0:24] Uh-oh.
[0:24] Six.
[0:25] Six.
[0:25] Five.
[0:26] One.
[0:28] Five.
[0:30] Alright.
[0:31] We're.
[0:33] You know, the U.N.
[0:43] They were.
[0:44] So the.
[0:47] I'm.
[0:48] I.
[0:48] I.
[0:48] I.
[0:48] I.
[0:48] I.
[0:48] I.
[0:48] I.
[0:48] I.
[0:48] I.
[0:48] I.
[0:48] have remote capabilities for consultations relied also. All right. Moving on to the open
[0:59] form, this is an opportunity for citizens to present items to the consult that are not
[1:03] on the agenda. Each presentation is limited to three minutes and a maximum of 15 minutes to set
[1:09] aside. If your item needs follow up, six staff will arrange for that. Do we have any for
[1:27] No, we have consent items under number five, or real model, or what do you want to read to one?
[1:35] No, in fact, you don't even have to read them.
[1:37] We just ask if anybody wants to pull an item off if you consent to gender for discussion.
[1:42] Okay.
[1:42] And if they do, then you pull it off and discuss it after you make a motion to approve the items remaining after consent.
[1:49] All right, we will go ahead and make a quick turn.
[1:55] Okay, is there a motion in a second to the consent panel?
[2:00] A little bit of discussion.
[2:01] There's really little on the floor.
[2:04] Missile proof of consent.
[2:08] Time will be second.
[2:10] I'll second.
[2:11] Okay.
[2:12] Thank you.
[2:13] Is there anything to discuss on the consent or objection?
[2:16] I just like to ask about the crime to be clear.
[2:32] All right, okay, that's all in favor, we have a motion by steam.
[2:43] All in favor of consent that I'm sitting by by saying hi.
[2:49] All right.
[2:49] Those motion carries.
[2:52] All right.
[2:52] We're going to move on to what we're waiting for.
[2:55] We've got Andy here from red path.
[2:57] We wanted to be.
[2:58] Why?
[2:58] Talk to the audit.
[3:00] All right.
[3:02] And Andy provided everyone a hand out as well.
[3:06] Thank you.
[3:07] Thank you for having me.
[3:09] I should be happy to be here.
[3:12] Good morning, my name is Amy Herring, and I'm here from Red Baptist Company to accept the results of the 2020 audit.
[3:21] The audit isn't quite finalized yet for reports how you've been finalized.
[3:27] Essentially, here it is. I'm just working on wrapping up the last few items.
[3:33] It seems like I can probably hear you.
[4:00] All
[4:11] right, so the honest is in quite finalized, we're doing them wrapping up a few last
[4:19] states here, but where I'm confident with the preliminary results and nothing really
[4:27] additional will change and we will be able to issue our reports by June 30th.
[4:35] So with that, I've got a slide chart just to run through the results of the audit,
[4:45] the
[4:45] The page, there we go, on page two of that slide summarizes the reports issued as part
[4:56] of the audit, the opinion on the financial statements, the report of internal controls,
[5:03] report on Minnesota legal compliance, and a communication letter to those charged with
[5:09] governance for the city council.
[5:14] First, the next slide are opinion on the financial statements.
[5:20] It's based on the field work we perform where we're testing the amount of the disclosures in the city's financial statements.
[5:27] There are five assertions that we're testing in occurrence completeness after see cutoff classification.
[5:35] A current we're ensuring that they be amounts recorded in the financial statements actually
[5:43] occurred and pertained to the city, if you think of all cash or revenue law, make sure
[5:48] it's actually the city's cash or actually the city's revenue.
[5:53] On the flip side, the police want to make sure everything that should be recorded is recorded
[6:00] such as liability and expenses.
[6:03] And that accuracy and cut off the classification relates to the accuracy of the accounts being recorded in the correct period and classifies correctly.
[6:14] We also use data mining techniques where we import the city's entire general ledger in detail, which is a listing of all transactions made during the year.
[6:25] We import that into a software we use to enable us to look at all of those transactions
[6:31] at once from the software and kicks out any unusual items depending on the queries we
[6:37] set.
[6:38] We do a match where we import employee addresses and vendor addresses and see if there's any
[6:45] matches there looking for anything unusual and we didn't find anything unusual.
[6:53] So, the results of the audit, and it's an unmodified opinion or a clean opinion, a high-stabled
[7:01] opinion, the civic opinion.
[7:06] A few slides on the financial results, the general launch balance increased $48,000 during
[7:14] in 2020, a budgeted, it was a budgeted flat, no increase or decrease, so there are 49,000
[7:25] ahead of budget.
[7:27] And what would have been more that $200,000 transfer there, what that is is in 2019,
[7:39] I think
[7:40] It was a few hundred thousand out of a few of them was we seeded into the general fund.
[7:45] But the expenditures for the expires department, the breathing apparatus was expended out of 401.
[7:54] So that 200,000 that came into the general fund in 19 was transferred over to 401 here in 2020 to match up those fat revenues.
[8:09] So with that, Andy, that's a journal watch that should have been taken care of at the time.
[8:16] The grant was received, moving it out of general, and the capital.
[8:21] It's been expended for the SMG's out of capital.
[8:25] Correct.
[8:27] Yeah, it was, the revenue was recorded in the wrong fund at the end of the time.
[8:33] So, with something as simple as that, what can we avoid that from asking?
[8:39] It's going to be, it's going to have any kind of, I mean, if you have any transactions,
[8:44] potentially, like, better view of your somewhere along the way,
[8:48] and that process of recording and receiving, is there something staff should be doing
[8:55] to, you know, correlate it to where it needs to work rather than,
[9:00] And it's just an oversight problem because it was an oversight right here gathering certain
[9:10] expenses as part of that process of recording those kind of colleges and expenses to speak.
[9:17] One of the steps is to make sure those are recorded in the same fund.
[9:23] Right, as my thought is, well, diplomas are taken to receive, it should bend the question
[9:28] or does this close to where else we need to do something.
[9:31] But there should be some communication
[9:32] and I think to make sure that we don't have one.
[9:34] I think there was a likely one person recording
[9:38] the receipt, a different person recording
[9:41] the expense and the lack of communication there
[9:46] or during the end, when reviewing the set in 2019,
[9:52] when reviewing the records at the end of the year,
[9:58] So
[10:01] we increased their fund balance level of 48 dollars.
[10:11] I'm going to the next slide because that's what the fund balance of the general fund
[10:17] yields at the end of 2020, $2 million, $80,000, and just a small amount of that, it's
[10:26] of those $2,500 that represents expenses pertaining to 2021.
[10:33] So you can see the $2,770,000 is unassigned fund balance.
[10:40] Now, a portion of that is definitely needed for cash flows.
[10:44] The city is in property taxes, I'd say.
[10:47] It's made revenue source.
[10:49] You don't receive your first payment from the county.
[10:51] So about halfway through the year.
[10:54] So the city needs funds on hand at the end of the year for cash flow purposes is built for the first half of the year.
[11:02] As such, the city has a fund balance policy establishing a minimum fund balance of 31%.
[11:10] And the actual on the site of fund balance was 92% of 2021 expenditures.
[11:18] There's a question mark, for sure.
[11:23] Is that the moment that we should consider investing
[11:28] in the part of that?
[11:29] We can carry that much from basically down,
[11:33] return a call because of the bank account.
[11:37] Yeah, the city has its money and both money-market funds,
[11:42] which these days are very low, if at all.
[11:46] And then there's a few CDs that City has, the money from all funds is really cool together
[11:54] when it comes to investing.
[11:58] So that usually the thought is you don't take an access from the general fund.
[12:04] You don't take an access from a water fund.
[12:06] You don't take an access from a suit.
[12:08] So when they're all kind of pooled together, but they're probably as
[12:11] someone for investing there, or either investing the money at bank, or a different
[12:19] way of investing would be to pay off debt, but that's the possibility, or not
[12:26] as you get for future targets, that's different means by which to counsel and take a look at it.
[12:34] You know that 92% is definitely on the higher end of what I see but I'll also say that the fund
[12:43] balance policy of 31% that's on the lower end as well.
[12:48] We have to make the city estimated halfway through the end so we should have at least 50% of
[12:54] So, in full, someone reserved for the carrier.
[12:59] Forty to fifty percent is common because not all of the revenue from the general fund is
[13:06] derived from the property taxes, but forty to fifty percent is much more common.
[13:12] So, maybe we as a co-host also should consider real lives in that, commercial, low
[13:21] -income,
[13:21] was fun, that was cool, we created a bit of a lot really, it can't, yeah there's a variety
[13:29] of factors that I'm finding in agency books and too, but for sure they're looking at fun
[13:33] balance and reserves and the city's fiscal plan and how closely it follows its fiscal plan
[13:41] and it means it's objective, yes, thank you.
[13:45] Next
[13:50] slide is, relates to the enterprise funds and really focuses on their cash produced
[13:58] by the enterprise funds, the liquor, water, and sewer utility funds, but the first line
[14:06] there are cash provided by operating activities that would be user charges less operating expenses
[14:13] such as payroll, utility costs, just the everyday costs to run those funds.
[14:22] So they go back once slightly good and the funds are providing a healthy operating cash
[14:35] Well, a few other non-operating income items there.
[14:42] But that money is needed for, you know, water and sewer funds needed to fund debt service payments,
[14:48] and we both will be increasing in future years due to bonds that were issued last couple of years.
[14:55] And then I did allow a $350,000 transfer out of the...
[15:00] Micro fund during 2020.
[15:05] So this is a quick question regarding. But one of the utilities is the water and the sewer that's been out. One of them is the point of being tight, right or not sure to be tight in future years, because of the bonds. Which one is that? Do you know just water? If it's bonds is more likely to bonds for the water tower. Okay. So I'll get it back to what we have.
[15:30] Can we utilize some of our access cash if you will to alleviate the pressure on that?
[15:43] Stash tourney, you cannot use property taxes to support watering, sewer, and no cost funds.
[15:51] So we transferred 350,000 out of the book of question.
[15:55] Correct.
[15:55] Yes,
[16:01] here in Cal, we came to the council acting close the reconciled summary for
[16:07] Thanksgiving, and Laura had access to cash, including the additional
[16:12] transfers at that time, open the level of invention for truth money, true projects,
[16:19] and I think someone to the fire department, they are for a fire truck, and I'm sure
[16:25] in a while, but we need to increase the transfer from the
[16:29] member fund, because they have access to that.
[16:31] Thank you.
[16:33] I have forgotten.
[16:39] So that covers our opinion on the financial statements and some financial
[16:43] results.
[16:44] Now, the next report, the issue is a report on internal controls related
[16:48] to the cities, policies, and procedures over financial reporting.
[16:54] And we don't necessarily audit all of the controls, but
[16:57] we're definitely looking at them as we perform the audit and we'll report to you
[17:02] any deficiencies we might detect during the audit. We did identify three internal
[17:10] control findings. But first, anytime there's a correction that's detected by audit
[17:20] procedures after the audit began, ideally the procedures would be in place to
[17:25] to collect everything and close the books properly,
[17:30] prior to the start of the audit.
[17:32] We identified 10 material audit adjustments
[17:36] and seven inventory audit adjustments.
[17:38] The difference there is the material adjustments
[17:42] were required to be corrected in order
[17:45] to receive the clean opinion, which they all work,
[17:48] and that many of the seven smaller items
[17:52] where we still have the best to correct those items as well.
[17:58] You can see the categories that those corrections affected, including the bank reconciliations.
[18:09] There was 2021 checks cut in 2021, they were included in the 2020 bank reconciliations.
[18:18] That was one of the items I was corrected.
[18:20] The
[18:24] next time, finding 2020-2, this is a repeat finding from last year.
[18:35] We really knew during 2020 that the bank reconciliation would have been performed timely.
[18:45] That's why burden KDB was hired to come in and catch up on those.
[18:50] So that one's really been resolved at this point.
[18:55] So at this time, when we were reconciling by the end of the PCA month, or almost time,
[19:01] there's got almost never been, yeah, of course there's no capers.
[19:04] Right, we're reconciling the beginning of the next month as we have, we have a new drug
[19:10] glitch though, Carl, because we had an issue with being, and so April was the latest
[19:20] And
[19:28] I'm finding 2020-3 is also a repeat finding from last year.
[19:34] There's not a consistent review of journal entries made throughout 2020.
[19:41] And that's another process that vergoncated is helping to refine and make sure the person entering the journal entry or into the system.
[19:58] And what is the process for that now, Catherine?
[20:04] Yes.
[20:04] So Mark is big in chasing lessons in the community by myself or my team.
[20:15] And if I could stay further in a different system, there would be a ability to put control in place.
[20:22] He then created journalism, but he couldn't post it.
[20:25] It would go to a person that allows ahead
[20:29] of him with a different responsibility
[20:30] that would be in the review of the poster.
[20:32] So currently, right now, that there's
[20:34] responsibility not necessarily existing to be in them.
[20:37] So, for example, I was able to post
[20:38] a journal which is to help go on his couple weeks ago.
[20:42] So we don't have those kind of controls
[20:43] or they're not allowed to be in it.
[20:45] To split that difference or split that job into two.
[20:49] which somebody posts an entry is different than somebody
[20:51] created an entry.
[20:52] So Marcus Cray entries make a review before he posts them.
[20:56] But he still has the same posts as you to Cray
[20:58] and then posting them at his time.
[21:00] So as somebody initially not on the journal entries,
[21:03] now for the review?
[21:05] We'll take a little more time.
[21:07] I'm sorry, is somebody, or a captain,
[21:09] are you initially not on journal vouchers after Mark
[21:13] prepares them?
[21:15] So there's an odd trail.
[21:16] let's do. Who did it manually? No, we have it, but that is a good thing, but like so we
[21:22] did actually reach law on that. We did reviewing it, but now with technology we haven't actually
[21:29] done any research on it. And if we change the county software I'm guessing it'll be an integrated
[21:36] piece of the process. I think we should definitely be having a
[21:50] And
[21:53] that protects the employee, the person making initial entries, you know, everyone
[21:59] makes some states.
[22:00] Everyone's allowed to do this.
[22:01] It's always nice to have a second set of lines to have a name.
[22:10] The next report, the report on Minnesota Vivo compliance, this is based on a guide that
[22:17] of the data under issues.
[22:22] So we're testing for compliance with state statutes
[22:26] in this seven different areas that's listed here.
[22:32] So we perform a sample as we're performing the audit,
[22:37] testing for compliance in various areas,
[22:39] such as the city of sufficient collateral
[22:41] over its deposits.
[22:43] Is it following the bidding requirements
[22:46] for sealed bids that are required for contracts
[22:49] over $175,000, there are certain provisions that must be followed related to tax increment.
[22:59] As a result of the other, we detected three compliance findings.
[23:04] The first,
[23:07] this has also repeat findings from last year.
[23:11] There's a debt report that must be filed with the accounting by the February 1st of each year.
[23:18] It was filed February 11th.
[23:21] So really not a significant client in there, but you know, it was quite so we have to report it.
[23:32] 20-5, there's a for unclaimed practice.
[23:40] Truly unclaimed, there's a report that has to be filed with the state,
[23:45] and that property should be turned over to the state.
[23:47] and this is what we need to do, checks that have not been cashed, so that is just an
[23:54] eight checks older than three years, which are still on that outstanding check, which
[24:00] I think, again, not a significant finding. I don't see that one either.
[24:07] These are just process things. I mean, this is something that shouldn't be reviewed by
[24:12] Not to administer your current year.
[24:15] Um, yes.
[24:16] Good afternoon.
[24:18] We probably finally caught the human heart.
[24:21] Irritated, committed, and tried to make sure.
[24:24] And it was a process that you'd go to the last way.
[24:27] And you got an island to file a vote, prepare the vote for us.
[24:31] You get that vote really well this way.
[24:32] And then as a forest-based economy, we wrap up our regular installations in the summer.
[24:37] We just look at the new type of checks that we've issued into the state.
[24:40] And so again, we will have that all in order to be able to stay properly before we do make this video.
[24:49] Great.
[24:53] And then this last one, the 2019 Equipment Certificates were issued and the resolution called for a levied in 2019 collected in 2020 to pay for those debt service payments.
[25:13] and that portion of the levy was not included in the debt service levy.
[25:19] This is actually the second year in a row we've had this type of a finding
[25:22] that 2018 bonds were supposed to have a levy in 2019 that did not occur either.
[25:31] So I think whether it's FERB and KDB or Ellers,
[25:38] whoever you may choose needs to take a step back and make sure
[25:42] you've got that the correct levied amount, the correct amount levied for all the outstanding
[25:48] debt before the levied certified for 2021 here for 2022. So for this month that was
[25:59] not well because that's something we can't go back and live for that year, can't we?
[26:05] are we just pay that out of our general fund?
[26:11] Yeah, you've got a few different options.
[26:15] You know, the fund just had a small cash deficit at the end of 2020 of 1589, but there
[26:23] was a $69,000 payment made on January 12, 2021, so within a fund, it didn't have the cash.
[26:33] overall the city has the action that and made the payment but that the options I
[26:40] think it was just a three year might be for that significant so that the
[26:47] level street sweeper or what's not good for sure 100 dollars
[27:12] So, the options would be to essentially pay for that $69,000 out of odd gift or the remaining
[27:21] We need two years of the lab being quickly increased.
[27:27] Is that something we need to have a discussion about, Linda?
[27:32] Yeah, we'll have that as part of the budgeting.
[27:35] So, ask your July meeting.
[27:38] We will have our first discussion on the 2022 draft budget.
[27:44] And so, we'll have recommendations for how to solve that as part of that process.
[27:48] Okay, about
[27:55] one more thing to think about, does the equivalence certificate, the city is paying about 3.9% interest at those they're doing February 23, 15 minutes ago where you're talking about how the city has some surplus funds earning low interest rate.
[28:18] I mean, it's kind of part of a good evaluation of the cash flows, doesn't make sense.
[28:24] They have to be paying 3.7 million in the earning.
[28:29] 2.1 million in seconds.
[28:30] You can just pay cash out right away.
[28:33] Exactly.
[28:35] Right.
[28:36] Yeah, so it would be a good recommendation to see the papers on.
[28:40] How many are there?
[28:42] There's three famous models.
[28:45] But it's just one.
[28:49] I think this is the only certificate outstanding right now.
[28:53] There might be a few other similar pieces of debt.
[28:58] I'm sure there could be.
[29:00] Yeah.
[29:00] Well, I know we financed some public work stuff.
[29:03] That was very extraordinary.
[29:05] I was part of the sweeper.
[29:06] Sweeper, back truck, and maybe a dump truck.
[29:08] Here, the back truck was a bit different.
[29:10] Yeah.
[29:10] And the reason why you financed usually is because you don't have enough in the budget to pay for it.
[29:15] So you finance it to spread about three years to make it match with budget.
[29:20] And so I understand why you finance equipment like that, it makes sense.
[29:25] But you do have the ability to pay it off.
[29:27] So that's another option.
[29:29] And you have to be, um,
[29:31] having to worry about the money in the world and have to be having to worry about the difference
[29:35] in those interest rates.
[29:38] At least that's what I heard.
[29:40] Eddie said, um, I'm not a gentleman.
[29:42] So I think everybody's worth some of my money.
[29:45] Yes.
[29:47] Well, good.
[29:48] That's something that would be a good budget discussion with that
[29:52] and other things.
[29:53] The impact on the capital plan that we have.
[30:01] All right, so that includes the compliance report. Lastly, there's a letter to the City Council
[30:07] of Required Communications from the auditor.
[30:13] Starts off, there's no new, there are no new
[30:15] accounting policies or standards adapted as part of the 2020 audit, where there's a
[30:23] paragraph that in our opinion, the most sensitive put note in the financial statements relates
[30:29] to long-term debt. There's a paragraph relating to difficulties in
[30:35] counter during the audit that the amount of journal entries posted, that's what
[30:40] this other handle was. It just gives you an idea of the adjustments that were made
[30:47] to the city's records after. And that's those 17 journal entries that were
[30:55] As you can see, it just takes time to do that in additional effort, but we made it, but
[31:03] it caused the audit to be done, or not to be done until right about now instead of hoping
[31:11] we got a few weeks ago.
[31:13] You guys have a question about middle-to-six long-term debt.
[31:17] Yes.
[31:17] Can you explain that a little bit more?
[31:19] You said it's normal sex, it's like putting up so, I don't know how to make sure I understand it fully.
[31:25] Yes, so, it's part of the slide out where audit standards should say,
[31:33] the closest to governments, what you feel is the most sensitive or the most significant footnote in the financial statements,
[31:41] It's the one and two that they should be most concerned in some great work, but most significant that 50% work would be, so this is an Arabian means that definition, we're being in necessary deals, but we need to pay attention to a lot better pay attention, yeah, that we don't get an upside down, we'll long-term devil.
[32:04] So as far as our volunteer budgeting process, when we're doing that 10-year help, we'll include debt service as part of that.
[32:12] Plus, you're the transfers in and out of capital, so you'll have a better handle on that, and you can you don't demonstrate to the
[32:35] that's what I was going to say that I think that's the rule, but we always ask them how
[32:41] this would impact our long-term debt service, I think.
[32:44] I think we are sensitive to that, because it's definitely something that we can't consider
[32:49] negatively.
[32:52] And that's why I think we're kind of causing this year's stepping back and being Miller's
[32:58] role.
[32:59] And then our vision for capital plan or strengths and equipment and so on and so forth.
[33:06] Thank you.
[33:13] But overall, in a way, we all worked together with Red Pass, the British KVB, and the finance
[33:24] and other staff here, and we all tried our best, and we're issuing my June 30th this year,
[33:31] which is a nice accomplishment.
[33:35] I want to thank Katherine and all the staff for working together to get this done last year.
[33:41] We all know how late we were on a cold and kind of gave us some kind of a reprieve to a degree.
[33:47] But, yeah, there's a reason we shouldn't be able to accomplish an audit for the government.
[33:51] Well, it takes everybody working together.
[33:54] And Andy had read that to us.
[33:56] And I'm sharing that.
[33:57] Absolutely.
[33:57] Right. But then we had a conversation yesterday, the burden paid me staff and the federal staff and we've
[34:07] greatly appreciate the patients that they've had in the health that they've had in us because we
[34:12] haven't lived through the New York 2020, but we were to the best of our abilities trying to
[34:17] report on it. And it was a great teamwork between the two of us. Obviously they needed to just stay as
[34:23] in the next possible.
[34:24] So we'll just appreciate the help we're able to do this.
[34:27] And we know it's going to be funny.
[34:32] We will have my phone key to be,
[34:34] and if I stop, I'll have to live through 2021
[34:37] with high cities, so it will be all for a million.
[34:40] So I'm pretty excited for our last two.
[34:48] Lastly, just a few additional points here,
[34:51] not necessarily findings, but other matters
[34:54] to pay attention to the 2020 Street Projects
[34:58] capital fund that's had a deficit of $280,000 in it, so that'll be, need to be resolved
[35:06] in some manner, another thing to consider during the budgeting process.
[35:13] Is that because of a levied problem again?
[35:18] No, you know, I don't.
[35:20] It may be because your special assessments were not certified, so you don't have your special assessment revenue coming in.
[35:27] If you would have certified them, they wouldn't have been on the tax rolls and would have started receiving some of your special assessment revenue.
[35:38] Is that what you're talking about here?
[35:41] That would be the 13th Street, or after 16th and 10th, all that work.
[35:47] So,
[35:50] Katherine, what led to said worried about special assessments were not certified?
[35:55] Well, that was the question that I had a month ago, this project, or too much of that,
[36:00] is a project on budget because we've spent more than the bomb to arrive,
[36:05] and I hadn't seen a budget from the project, so that was the question that says.
[36:09] So, two months ago, maybe it was the question I had a month and so.
[36:13] The project is actually young, but I actually need to see the budget
[36:17] to see if the special assessments also doesn't play as we're
[36:21] under new to cover the expenses, which I'm assuming that
[36:24] it potentially does, I just think of the time.
[36:30] Well, do you remember how much we had for the no-one really?
[36:35] It could be last year because I was part of that project.
[36:39] Or we incorporated it into the project, so that was,
[36:43] we had 115 budget and it was 185,
[36:48] $990,000, so we used the capital money for that,
[36:52] but the plan was for that, for the debt holders.
[36:57] So I wouldn't be part of this, I don't think at all.
[37:00] Well, I was, you know, purely the policy issue,
[37:03] which we found, and it's written in two terms,
[37:07] but it's written in two terms.
[37:08] Can I say that that would happen?
[37:11] What I'm showing here is expensive in that fund
[37:15] of $2,000,000, $25,000.
[37:18] Those expenses were funded by the 2020 bonds and bond proceeds were $1,770.
[37:28] The future assessments will come into pay for the debt service, and the initial deficit
[37:35] here, because expenditures are more than the bond proceeds.
[37:40] So, I'm just saying we spent more on that project than we had issued a bottom up.
[37:46] Yes.
[37:47] Correct.
[37:48] So, I have not seen this budget for the project.
[37:50] So, I don't know how it was budgeted.
[37:53] Was it budgeted to spend a million, whatever, and then $2 million, and then the only rate
[38:01] is $7 million or maybe $8,000, and we were expecting a transfer or something else to occur.
[38:07] but I have not seen the budget for the student project.
[38:10] We're in to determine where the rest of the proceeds
[38:14] they've come from, they've come in deficit.
[38:16] So, for such a special assistance,
[38:18] like Andy said, we'll come in and come in debt
[38:20] in the future, not come in the project in the current period.
[38:24] So, great appreciation of how that information should be.
[38:29] But I'm worried about that information as well.
[38:31] I don't have a poll on what I think I'm going to come into
[38:35] I don't recall where I was telling us that we went over a bunch and I guess if we weren't
[38:41] to have what on our wood, wouldn't we have the body to have talked about?
[38:45] Yeah, absolutely.
[38:46] I don't think so.
[38:48] I think that might mark our figure out here on that.
[38:55] Does that have anything to do with that?
[38:56] We wait for that second year to put that final up on and we never certify the levies until
[39:01] a year after.
[39:03] I don't think so, Steve. I think that's part of the award on the contract and got a move.
[39:11] One of the things that we should also take a look at is how all the bills were coded.
[39:15] We're all the bills coded to the proper fund. You know, if you added the mill and overlay
[39:20] to it and you coded it to the street project, you coded it, it got coded to the wrong fund.
[39:27] Yeah, because if you were using million overlaid dollars to do the added on work for the
[39:32] mill and overlays, you would have not issued the bond for that because you knew you had
[39:37] it in the budget and you were going to pay cash.
[39:39] So I think we should, I'll take a look back, look at how all of the expenses were coded to
[39:45] this fund and make sure that all of the expenses were appropriately coded or did they need
[39:50] to be moved over, you know, to the mill and overlay line item.
[39:54] You know what I mean?
[39:55] I won't give you any.
[39:56] Okay.
[39:56] We're going to look into that.
[39:57] Yep.
[39:58] I'll take a look at that.
[39:59] And we'll take a review of the expenses charged to that fund, and we'll make sure that
[40:04] everything is in the right place.
[40:06] Because we get out of the council approved using our capital fund money in addition to the
[40:14] $1.15 level.
[40:15] We've done that for two years in a row.
[40:17] Yep.
[40:17] Okay.
[40:17] Okay, so there's a transfer as well if you're sick and potentially shouldn't happen
[40:21] in to that harm that I already done so.
[40:24] Some of them don't seem to be in as much after you're actually really improving.
[40:29] So, Carl Greenfield is a sidewalk project, you know, from ten to many years ago.
[40:36] I think it was more...
[40:41] Yeah, all out of all.
[40:45] But that might have been absolutely, but I don't know where I'll go.
[40:49] But if I was discussing with some of that, well, actually, we're not discussing one of these.
[40:54] So we're going on with that.
[40:55] That would be close.
[40:57] Okay.
[40:58] Is it a certain time?
[40:59] I think in their bodies, it's sort of like that.
[41:01] We are sure we'll take in.
[41:03] All right.
[41:04] All right.
[41:10] All right.
[41:10] I think there is an outstanding interfund loan between the Goldgrass and Stiff District and the EPA fund that needs to be resolved at some point.
[41:22] It's been on the books for several years now.
[41:27] And then the last point on the slide, we really covered that already just to ensure that
[41:35] that that service on their property was properly levied for.
[41:53] So at this point in time, council should make a motion to accept the preliminary audit
[42:00] as presented and authorize staff to work on the remaining issues so we can get it finalized
[42:07] and to the State Auditor's Office before our June 30th deadline.
[42:12] So if you accept it as preliminary, as presented,
[42:17] and with the direction to staff to be able to finish it up
[42:21] and correct any accuracies or deficiencies,
[42:25] then we can go ahead and file finish the reporting and get that done.
[42:29] I will make that motion.
[42:35] Any other comments?
[42:39] Here again, all in favor of second public, say hi.
[42:42] Hi.
[42:43] Close.
[42:45] Thank you again, Andy, for all the good work.
[42:47] Thank you.
[42:48] Well, this is you and June, rather than October.
[42:51] That's better.
[42:53] That's better.
[42:54] I'm going to make it from blue.
[42:56] So did you get one of those?
[42:58] Thank you.
[42:59] I just want to make sure I can be.
[43:00] Just a few.
[43:01] Enjoy it.
[43:02] I do.
[43:03] Okay.
[43:04] Just a few.
[43:04] Thank you.
[43:06] Okay.
[43:07] Step off the comment.
[43:09] Is there any questions or comments
[43:10] with any of these questions?
[43:12] Or if you want to answer them directly?
[43:15] Please.
[43:16] I'm really taking questions.
[43:18] Step off the comment.
[43:22] Just thank you, Dr.
[43:23] Thank you.
[43:28] Thank you.
[43:28] Thank you.
[43:29] Thank you.
[43:29] Thank you.
[43:30] Thank you.
[43:33] Okay.
[43:34] Now we're going to move on to the visioning session.