Finance Committee Agenda and Packet 2016 06 14

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City Council Finance Committee Meeting Minutes 05/16/16 Page 5 of 7 Senior Accountant, Graham Clark presented to the Finance Committee the financial statements for the first four months ending April 30, 2016. Mr. Clark informed the Committee Members that the fieldwork conducted by Eide Bailly for the audit went well, but reemphasized that the 2016 budget amounts represented in the statements are those originally passed in November 2015, and do not include the roll-forward amounts discussed earlier in the meeting. Director Watson stated that he is working with the auditors on the financial statements, and that Mr. Dave DeZutter will be presenting his final audit report to the Finance Committee in July or August. Councilmember Stolzmann asked if the auditors had reviewed the new Chart of Accounts. Director Watson stated they had not, but Eide Bailly is fine with the change provided there is a clean cutover for July 1. Mr. Watson stated that the audit fees would probably not be increasing due to the new account structure. Accountant Clark provided Committee Members the following Fund comments: General Fund - the spike in Intergovernmental Revenue was due to the Town of Superior remitting its portion of fees for the Library, and Finance department expenses are currently above budget due to the full year payment of software license fees to ADG. Open Space and Parks Fund — Capital expenditures are less pending the purchase of machinery and equipment. Water Utility Fund — Accountant, Graham Clark stated that the 13% rate increase letters have been send to residents. Finance Committee Member Maloney, stated that he is not sure how to interpret the fund balance report for the Water Utility Fund, noting that it would be much easier to determine if the revenues and expenditures are good or bad, if it was presented in a dashboard format that provided a visual usage curve. Mr. Clark stated that hopefully the new ERP would help provide that information. City Manager Fleming stated that it is difficult at this point to determine the impact of the rate increase until later in the year. Wastewater Utility Fund — Accountant Clark stated that the new average water consumption (AWC) rates went into effect May 1st but the impact will not be seen until June. Golf Course Fund — Mr. Clark stated that the revenue for the Golf Course does not yet include the 5% concessionaire sales or the inventory purchase which should happen in August. 6