1 00:00:04,530 --> 00:00:05,530 All right, now watch it. 2 00:00:08,860 --> 00:00:12,480 I cannot believe how hard it was to get, I've never had this much trouble getting this screen. 3 00:00:13,160 --> 00:00:14,820 I had to change my password twice. 4 00:00:22,660 --> 00:00:24,700 I've stepped out. They don't need me in there for this part. 5 00:00:28,850 --> 00:00:31,210 Honestly, I think there's, is it showing now? 6 00:00:35,240 --> 00:00:38,920 Okay, can I have a motion to reconvene? 7 00:00:38,940 --> 00:00:39,640 I'll make that motion. 8 00:00:40,580 --> 00:00:42,200 Boy, that was bright together. 9 00:00:42,680 --> 00:00:44,020 I'll make that motion. 10 00:00:44,440 --> 00:00:45,380 And I'll go ahead and second. 11 00:00:45,720 --> 00:00:46,700 Okay, all in favor? 12 00:00:47,060 --> 00:00:47,360 Aye. 13 00:00:47,360 --> 00:00:51,280 Okay, motion carries. I don't know what time it is. I'm sorry. 14 00:00:51,680 --> 00:00:53,400 All right, 15 00:00:56,960 --> 00:01:02,560 and so there is no action on what was discussed in executive session. 16 00:01:03,140 --> 00:01:10,140 So we're going to hop back to our action item B to discuss discussion, 17 00:01:10,220 --> 00:01:16,280 consideration and possible action on presenting and accepting the fiscal year 22-23 audit. 18 00:01:23,150 --> 00:01:25,470 Yeah, just make sure you stick into it. 19 00:01:27,410 --> 00:01:28,610 You're very important. 20 00:01:29,710 --> 00:01:34,610 Mayor and City Council, I want to say thank you very much for allowing me to perform your audit this year. 21 00:01:38,250 --> 00:01:43,150 I want to say thank you to the staff and to Risa and really your whole team this year. 22 00:01:43,250 --> 00:01:47,470 It seemed like everybody kind of came together after last year's audit and worked together. 23 00:01:47,470 --> 00:01:52,170 There was probably the first time I've ever seen that somewhere where everybody got together 24 00:01:52,170 --> 00:02:00,210 and kind of went into control and took everything over and set up bank accounts in the right 25 00:02:00,210 --> 00:02:01,450 ways and all that kind of stuff. 26 00:02:01,750 --> 00:02:05,030 It really made a pretty big improvement and I'll show you that here in a second. 27 00:02:06,210 --> 00:02:13,130 If you'll turn to page four, really four through page six, this is the actual independent 28 00:02:13,130 --> 00:02:14,030 auditor's report. 29 00:02:14,870 --> 00:02:17,470 I think it's a little different than last year's. 30 00:02:17,490 --> 00:02:19,990 It has the opinion as the very first paragraph. 31 00:02:20,430 --> 00:02:23,230 So the AACPA basically changed the format. 32 00:02:23,610 --> 00:02:25,570 But at the end of the day, it means the same thing. 33 00:02:25,690 --> 00:02:29,170 It means that your financial statements presented within this report 34 00:02:29,170 --> 00:02:33,810 present fairly the financial position of the city as of September 30, 2023. 35 00:02:34,290 --> 00:02:38,770 So it's called a unmodified slash clean opinion. 36 00:02:38,990 --> 00:02:41,290 So it's the opinion that you were going for and accomplished. 37 00:02:41,290 --> 00:02:42,750 So congratulations. 38 00:02:45,030 --> 00:02:49,530 The next section I'd have you go to is on page 10 and page 11. 39 00:02:51,530 --> 00:02:55,750 And this is basically the condensed version of your 40 00:02:55,750 --> 00:02:57,530 government-wide financial statements. 41 00:02:59,490 --> 00:03:03,750 I like to bring this up because it kind of compares a nice 42 00:03:03,750 --> 00:03:07,870 summarized balance sheet and income statement this year to 43 00:03:07,870 --> 00:03:14,450 last year, so you can kind of see what's changed and what has been adjusted based on the previous year. 44 00:03:14,610 --> 00:03:17,970 So it's a good tool to look at to make those changes. 45 00:03:18,330 --> 00:03:29,930 But at the end of the day, you ended this year with about $7.2 million in total government-wide net position assets. 46 00:03:30,190 --> 00:03:34,410 That's basically the fund balance of everything within the city. 47 00:03:35,110 --> 00:03:37,550 if you looked at the city as if it were to be a business. 48 00:03:38,450 --> 00:03:41,850 And that's what the government-wide financial statements are. Basically, 49 00:03:42,550 --> 00:03:46,230 your capital assets within these financial statements are recorded 50 00:03:46,230 --> 00:03:50,770 and capitalized on your books and depreciated. Your debt is recorded on your books 51 00:03:50,770 --> 00:03:54,390 and written off as you make payment. So it's like looking at the city 52 00:03:54,390 --> 00:03:58,190 as if it were to be a business. So it's a little different than what you're used to seeing. 53 00:03:59,810 --> 00:04:02,470 But last year's number, to kind of put 54 00:04:02,470 --> 00:04:07,390 that comparison you probably see was about 6.2 million dollars. So there was about a million 55 00:04:07,390 --> 00:04:13,530 dollar improvement in this year from last year. And if you'll turn to page 11 you'll 56 00:04:13,530 --> 00:04:21,770 see the kind of the breakdown of that number. Last year you had net loss of about 281,000. 57 00:04:22,370 --> 00:04:27,190 This year you had a gain of about a little, right at a million dollars. A big chunk 58 00:04:27,190 --> 00:04:34,190 of that is related to some of the, I guess, right increases that took place that within 59 00:04:35,270 --> 00:04:44,250 the utility fund, a lot of property tax revenue came in. You had a little bit of grant money 60 00:04:44,250 --> 00:04:49,170 that came in as well, so it was really a pretty good year to have compared to the year before 61 00:04:49,170 --> 00:04:54,950 that. So it had a lot of growth and that's really kind of what you needed to get 62 00:04:54,950 --> 00:05:07,230 I think last year you had, if you remember, your cash in one of your funds had to be reported as a liability in order to record it because it was technically negative. 63 00:05:08,110 --> 00:05:14,590 That's all been kind of corrected and your fund balances are all positive now. 64 00:05:16,230 --> 00:05:20,090 If you'll turn to page 20, 65 00:05:22,480 --> 00:05:27,400 these are the governmental financial statements, which it looks a little different. 66 00:05:27,900 --> 00:05:35,520 I guess the number one thing is that your assets, as you buy assets, you expense them with these financial statements, 67 00:05:35,620 --> 00:05:44,580 as opposed to capitalism. When you bring on debt, it's recorded as proceeds, and the payments that you make towards that debt are expensive. 68 00:05:44,580 --> 00:05:47,380 So it's kind of like a cash flow basis of the city. 69 00:05:47,460 --> 00:05:49,220 This is what you're used to seeing. 70 00:05:49,420 --> 00:05:51,040 When you buy an asset, you expense it. 71 00:05:51,180 --> 00:05:53,460 When you pay off your debt, you expense it. 72 00:05:53,520 --> 00:05:55,200 So it's more of a flow of resources. 73 00:05:55,780 --> 00:05:59,800 But just the general fund and the other governmental funds, 74 00:06:00,260 --> 00:06:03,020 that's excluding the utility fund, which is the big one, 75 00:06:03,660 --> 00:06:06,880 you ended the year with about a million nine 76 00:06:07,900 --> 00:06:13,680 in fund balance of which about $613,000 77 00:06:13,680 --> 00:06:17,040 was the unassigned version that gets you into the new year. 78 00:06:22,060 --> 00:06:25,200 So that represents about a $22,000 increase. 79 00:06:25,400 --> 00:06:27,580 Last year you lost money in that fund. 80 00:06:27,700 --> 00:06:30,000 So that kind of puts it in comparison. 81 00:06:31,920 --> 00:06:35,240 So really overall, I just say that it was a huge improvement. 82 00:06:37,400 --> 00:06:38,700 Let me see. 83 00:06:44,450 --> 00:06:48,810 Yeah, basically all the fund balances are positive compared to last year. 84 00:06:48,810 --> 00:06:55,050 So it's really remarkable how that can change in one year, but I just want to say congratulations. 85 00:06:55,450 --> 00:07:00,130 But I found it really neat to be able to see how everybody knew that there were some issues 86 00:07:00,130 --> 00:07:04,590 that need to be worked on, and I remember all the calls that you had with different 87 00:07:04,590 --> 00:07:08,690 people all wanting to work together, so it was kind of neat to be able to see that 88 00:07:08,690 --> 00:07:13,890 from that perspective, so I think that's why that was accomplished this year. 89 00:07:15,850 --> 00:07:18,830 Starting on page 27, going almost to the end of the book. 90 00:07:18,950 --> 00:07:20,590 These are the notes of the financial statements. 91 00:07:21,550 --> 00:07:24,710 Like I say every year, the typing gets smaller and smaller. 92 00:07:26,010 --> 00:07:30,730 Some day I'm going to be able to increase this to where it's a reasonable format to see, 93 00:07:30,810 --> 00:07:35,110 but it's a lot of important information that tells you about the different accounting methodologies, 94 00:07:35,210 --> 00:07:37,950 and this begins on page 27. 95 00:07:40,320 --> 00:07:44,980 A lot of stuff that is important to read if you want to go through and learn all about 96 00:07:44,980 --> 00:07:49,700 the accounting methodologies, what's restricted, what's unrestricted, the different classifications 97 00:07:49,700 --> 00:07:50,320 of fund balance. 98 00:07:50,460 --> 00:07:54,140 But if you want to skip all of that, probably the most important section to go to begins 99 00:07:54,140 --> 00:08:01,380 on page 36, and this is the section that deals with the details on your fixed assets 100 00:08:02,100 --> 00:08:04,820 as well as the accumulated depreciation on those assets. 101 00:08:05,560 --> 00:08:13,560 more importantly on 37 this is where the debt is recorded and it actually goes 102 00:08:13,560 --> 00:08:18,740 into all the debt that you have each category and the payments to be made 103 00:08:18,740 --> 00:08:26,220 into the future. If I was going to recommend one thing to to change or 104 00:08:26,220 --> 00:08:31,740 look to enhance into the future would be some reserves and I know that's just 105 00:08:31,740 --> 00:08:37,820 going to take some time but to build some reserves within the, you don't actually have, well you've 106 00:08:37,820 --> 00:08:41,940 created one for your own purpose but usually you don't have one within the utility fund, 107 00:08:42,320 --> 00:08:48,980 but that's where most of the debt is, the bonds to create some reserves for the debt in that. 108 00:08:49,540 --> 00:08:55,680 So you have been accumulating debt and you've used that, I mean you have been accumulating 109 00:08:55,680 --> 00:09:00,840 resources and you've used those resources to pay that debt but there really should be some accumulation 110 00:09:00,840 --> 00:09:06,960 of some future resources to be able to kind of have that so but that's this is 111 00:09:06,960 --> 00:09:12,420 the first year that you actually have that use of that money to be to pay that 112 00:09:12,420 --> 00:09:19,880 debt so it's something to look forward to into the future into grow but this is 113 00:09:19,880 --> 00:09:24,180 the section that when you go to borrow money or if you decide to do some sort 114 00:09:24,180 --> 00:09:29,080 of refunding this is probably the most important section to look at this is 115 00:09:29,080 --> 00:09:32,020 what they'll go to because they'll want to see all your debt categories and the payments 116 00:09:32,020 --> 00:09:37,900 into the future and the different interest rates and that kind of stuff, but that's really 117 00:09:37,900 --> 00:09:42,640 the most important section of the notes, unless you want to spend hours reading through 118 00:09:42,640 --> 00:09:47,500 all the accounting methodology, which I would, but a lot of people don't want to do that. 119 00:09:48,800 --> 00:09:54,020 And then towards the end of the notes, there's some sections that deal with the EDC. 120 00:09:54,020 --> 00:10:00,800 If you wanted to look at the EDC financials, there wasn't a whole lot of activity, 121 00:10:01,420 --> 00:10:08,700 but you can see the financials on page 16 and page 18 and 19. 122 00:10:08,980 --> 00:10:12,580 They're just on the right-hand side of the city's financial statements. 123 00:10:12,720 --> 00:10:18,500 It's listed as a component unit, and it's kind of discreetly blended within your financial statements, 124 00:10:18,580 --> 00:10:21,920 but it's on the right-hand side, so you can see their financial statements. 125 00:10:21,920 --> 00:10:31,880 But they ended the year with about $544,000 of fund balance of which about $939,000 in 126 00:10:31,880 --> 00:10:38,260 assets and payment on their debt, they had about $314,000 in their debt. 127 00:10:40,140 --> 00:10:45,500 One final thing, I want to state, I'm sorry for moving around so much on this, but you 128 00:10:45,500 --> 00:10:55,800 had this year with your debt, you had about $9.9 million 129 00:10:55,800 --> 00:11:00,260 which you ended the year with with debt. And that began at 10 130 00:11:00,260 --> 00:11:05,060 million 312,000 and you reduced it by about $368,000 for this 131 00:11:05,060 --> 00:11:09,800 first year. And those are your standard. I'm sorry, I switched 132 00:11:09,800 --> 00:11:12,800 around. It's on page 13. It's kind of a summarized version 133 00:11:12,800 --> 00:11:15,440 of your assets and your debt but 134 00:11:19,060 --> 00:11:23,300 that's really pretty much it I mean you had 135 00:11:23,300 --> 00:11:26,640 some growth this year so it's it's a lot different picture than what it was last 136 00:11:26,640 --> 00:11:31,880 year and it was a lot cleaner this year a lot of the you've gone through I saw 137 00:11:31,880 --> 00:11:37,920 the effort where you went through and created a lot more funds and and set it 138 00:11:37,920 --> 00:11:40,620 up in a way to where the cash accounts to be reconciled because it looked like 139 00:11:40,620 --> 00:11:44,040 you were monitoring the cash like crazy to be able to to get through this 140 00:11:44,040 --> 00:11:48,960 So it, I mean there's always room to approve 141 00:11:48,960 --> 00:11:52,700 but it was a huge growth this year from my perspective. 142 00:12:22,890 --> 00:12:26,410 There are also some supplementary schedules towards the back 143 00:12:27,030 --> 00:12:30,110 that kind of break down the activity 144 00:12:30,110 --> 00:12:35,930 of the other non-major funds. 145 00:12:37,290 --> 00:12:39,030 The biggest one being the hotel fund. 146 00:12:39,190 --> 00:12:41,590 There was a transfer from the hotel fund this year 147 00:12:41,590 --> 00:12:47,230 for some expenditures that had taken place and I know we all worked together and spoke 148 00:12:47,230 --> 00:12:50,990 with your attorney about moving those out and utilizing some of that money because it never 149 00:12:50,990 --> 00:12:57,390 had been utilized. It never had been utilized to cover the expenses that normally those 150 00:12:57,390 --> 00:13:02,290 funds would have covered. So that's what that transfer reflects. That's really pretty 151 00:13:02,290 --> 00:13:03,330 much it. Does she have any questions? 152 00:13:38,190 --> 00:13:43,150 Did anybody have any additional questions, concerns, discussion? 153 00:13:43,150 --> 00:13:43,970 A 154 00:13:48,930 --> 00:13:55,390 lot of information and stuff, but is there any way that the process, I mean, we're eight 155 00:13:55,390 --> 00:14:02,590 months out now from this snapshot in time, is there, are there ways, is there things 156 00:14:02,590 --> 00:14:10,010 that we can do differently in the transformation of information and everything to make this 157 00:14:10,010 --> 00:14:13,050 happen a little quicker or is it just the nature of the piece? 158 00:14:15,540 --> 00:14:19,320 You put a lot of controls, this past year, a lot of controls are put in place. 159 00:14:19,320 --> 00:14:24,340 It's a lot of, I know Sarisa, her team was working on cash, 160 00:14:24,660 --> 00:14:28,180 was the big thing, was the big tool to really watch the cash, 161 00:14:30,440 --> 00:14:34,480 and I think you even eliminated some of the pooled cash stuff. 162 00:14:34,700 --> 00:14:36,360 I mean, I always liked pooled cash, 163 00:14:36,500 --> 00:14:38,660 but you wanted to be able to watch it closely, 164 00:14:39,140 --> 00:14:41,020 but I think it's just gonna be a matter of 165 00:14:41,020 --> 00:14:43,920 always watching expenses and controlling expenses, 166 00:14:47,380 --> 00:14:54,120 and jump really improving whatever you have as far as reporting you see so you 167 00:14:54,120 --> 00:14:58,760 can you can watch every single month and be able to see what is occurring you 168 00:14:58,760 --> 00:14:59,720 can almost have this 169 00:15:01,300 --> 00:15:06,140 You can actually have a set of financials to tell you where you stand at, so there would 170 00:15:06,140 --> 00:15:11,440 never be a wait for the end of the year to find out where you stand at. I'm not sure exactly 171 00:15:11,440 --> 00:15:17,660 what you're seeing each month, but you can grow that. You can look at a set of financials 172 00:15:17,660 --> 00:15:22,800 and the bank statements, the reconciliation, a lot of information that can just tell you 173 00:15:22,800 --> 00:15:29,840 where you stand at. The biggest thing that I saw was some of the controls when it 174 00:15:29,840 --> 00:15:33,360 deals with the cash reduction in the expenses. 175 00:15:34,520 --> 00:15:36,300 And there was some strategies for the place 176 00:15:36,300 --> 00:15:37,700 to be able to increase some of the impact. 177 00:15:38,940 --> 00:15:41,920 And the big thing is expenses, there was a lot 178 00:15:41,920 --> 00:15:44,840 of expenditures that were occurring in the past. 179 00:15:47,840 --> 00:15:51,800 And that was kind of the way it's in the past. 180 00:15:51,900 --> 00:15:55,580 Unfortunately, we don't have the full-time payroll 181 00:15:55,580 --> 00:15:58,540 for the financial person to do that together for us. 182 00:15:58,540 --> 00:16:09,040 It would be nice, but just seeing it, I mean, we're two-thirds of the way basically through 2024 when we're seeing the snapshot time at the end of 2023. 183 00:16:09,680 --> 00:16:21,100 We have a pretty good idea because of the communication that we get, but I was just curious if there was something we could do where it wasn't eight months after the fact. 184 00:16:22,240 --> 00:16:23,600 You mean for me to come in? 185 00:16:23,760 --> 00:16:23,900 Yeah. 186 00:16:26,080 --> 00:16:27,400 Or if that's just the nature of it? 187 00:16:27,400 --> 00:16:36,020 No, no, it's, no, it's, it's something with, with me, I've eliminated a few of my clients, some of the ones that were kind of complicated. 188 00:16:36,320 --> 00:16:55,660 I had some that there was a lot of issues this past year with peer reviews and, you know, I've stopped taking any more clients because they just kept calling me and I'd add more and more and more, but I kind of held off on purpose on this one 189 00:16:55,660 --> 00:17:06,440 Because it was kind of some issues from the past that took quite a bit of work to be able to get the financials to where they're completely reconciled. 190 00:17:06,760 --> 00:17:08,560 And I'm not supposed to play any role in that. 191 00:17:08,660 --> 00:17:10,940 I'm supposed to come in and be completely ready to go. 192 00:17:11,400 --> 00:17:17,760 This year turned out to be a whole lot cleaner than it had been. 193 00:17:17,760 --> 00:17:22,780 And I think a lot of that is because you switched to a new system in the past that 194 00:17:24,360 --> 00:17:28,220 ENCODE and it had cool cash and that wasn't something you were familiar with. 195 00:17:28,680 --> 00:17:36,500 So I kind of put it off until, you know, anticipating that because I needed to be able to get a whole bunch of done at one time. 196 00:17:37,000 --> 00:17:39,360 I'll have you done sooner next year, I'll put you. 197 00:17:40,120 --> 00:17:46,620 I mean, I'll work with Sarisa to figure out exactly when you want to have it October 1st. 198 00:17:47,980 --> 00:18:05,000 I think that's the problem, too, is that, you know, when I was with Halliburton, I was the chief finance officer, and they could take two months of work to get ready for the audit that we had every year, and then I'm doing 40-something of these, and four of them are big counties. 199 00:18:05,880 --> 00:18:08,520 But, I mean, you guys have really... 200 00:18:08,520 --> 00:18:10,180 We're your only client. 201 00:18:12,240 --> 00:18:14,020 You should sell yourself, man. 202 00:18:14,020 --> 00:18:18,400 But I can move you up. 203 00:18:19,140 --> 00:18:22,420 I was just asking if there was something that we could do. 204 00:18:22,620 --> 00:18:29,520 If we can, because it doesn't concern me nearly as much when things are good, 205 00:18:29,640 --> 00:18:33,600 but I've seen enough of these where I've seen things that have taken a really bad turn for the worst. 206 00:18:34,160 --> 00:18:38,960 And we're finding out after we've gone too far down the road to make a quick correction. 207 00:18:41,580 --> 00:18:43,740 That's the only reason I'm asking. 208 00:18:44,140 --> 00:18:46,080 Well I think you've made some of those changes. 209 00:18:46,340 --> 00:18:53,260 I think you've made the changes to where it'll be a whole lot easier to get it done on my end 210 00:18:53,260 --> 00:18:57,100 to be able to come in and count on the reconciliation and be able to count on this 211 00:18:57,100 --> 00:19:01,680 and be able to put it together and give you the results a lot faster. 212 00:19:02,820 --> 00:19:08,620 I'm not going to promise I can do it in October, but I will have you ready to go. 213 00:19:08,620 --> 00:19:18,520 I just kind of put you at the end, you know, falsely because of some of the other issues 214 00:19:18,520 --> 00:19:23,480 that had taken place in the past and wanted to knock out a whole bunch of them first before 215 00:19:23,480 --> 00:19:25,340 I dealt with one that was going to take a lot of manpower. 216 00:19:25,520 --> 00:19:28,120 So what you're saying is our department heads have done fantastic. 217 00:19:28,680 --> 00:19:30,560 They've done really, really well. 218 00:19:30,560 --> 00:19:38,720 I mean, they did, I mean, like I said, I found it really neat that everyone kind of worked 219 00:19:38,720 --> 00:19:39,160 together. 220 00:19:39,480 --> 00:19:42,880 I mean, I had phone calls from every department that were all just coming together. 221 00:19:43,440 --> 00:19:48,920 I think there was even a police person that was playing a role in it that it was just 222 00:19:48,920 --> 00:19:50,720 really neat to see all of that and it, 223 00:19:52,740 --> 00:19:58,120 you know, everyone was interested in bringing 224 00:19:58,120 --> 00:20:03,520 it together and coming up with a solution and I was really surprised by the way it came out this year. 225 00:20:03,660 --> 00:20:09,000 I mean you still have some things to improve on there. You can always cut expenses and things like 226 00:20:09,000 --> 00:20:16,220 that but you've done a fantastic job of just the basic rigging the fund balances positive and 227 00:20:18,740 --> 00:20:24,520 reconcile and handle the cash appropriately where one fund is not negative cash. I mean those 228 00:20:24,520 --> 00:20:29,320 of things that you should never have to deal with and so I mean you should really be applauded 229 00:20:29,320 --> 00:20:29,600 for that. 230 00:20:29,980 --> 00:20:35,420 I think we should really congratulate our department heads for putting this together like they did 231 00:20:37,040 --> 00:20:45,720 and making it happen when you know they took it over there you know it was kind of a mess 232 00:20:45,720 --> 00:20:49,440 when they put it together and they made things happen so I think we need to thank them 233 00:20:49,440 --> 00:20:49,820 for that. 234 00:20:51,040 --> 00:20:54,840 Thank you. This is keep it going. 235 00:21:00,180 --> 00:21:02,140 Nothing like hearing clean report. 236 00:21:05,940 --> 00:21:06,940 Okay, then if there's 237 00:21:06,940 --> 00:21:13,120 no further discussion, can we make a motion to accept the audit? I'll make that motion. 238 00:21:13,120 --> 00:21:19,240 Okay. Second. I'll second. All in favor. I motion carries. 239 00:21:22,200 --> 00:21:25,260 Okay. So can we have a motion 240 00:21:25,260 --> 00:21:32,080 to adjourn? I'll make that motion. Second. I'll second it. All in favor. I motion carries. 241 00:21:32,080 --> 00:21:34,880 we are adjourned. It is seven twenty three.