Finance Committee Agenda and Packet 2017 08 18

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City Council Finance Committee Meeting Minutes 07/21/17 Page 2 of 7 None. PRESENTATION OF 2016 COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) AND COMMUNICATION IN COMPLIANCE WITH AU -C-260 Ms. Sarah Kurtz, Partner of Eide Bailly LLP presented the 2016 CAFR to the Finance Committee Members. Ms. Kurtz reviewed the Independent Auditor's Report with Finance Committee, noting the re -statement of the Impact Fees, and their verification of the City's software conversion, but stating the City received the best audit opinion that is given. Ms. Kurtz provided a summary of the City's Statement of Net Position and led the Committee Members through a discussion regarding the reclassification of the City's solar leases from operational expense to capital asset. Also included as part of the Eide Bailley audit was the compliance review of the City's major federal grant programs, both which Ms. Kurtz stated were in full compliance. Ms. Kurtz's summary to the Finance Committee of the audit results detailed the one audit finding regarding impact fees, for which the City provided a Management Correction Action Plan letter from Planning & Building Safety Director Zuccaro. Ms. Kurtz thanked City Finance Department staff for their assistance through the audit. The Finance Committee Members commended Director Watson, Graham Clark, and staff, for the excellent work on the 2016 CAFR as well as the work of City Auditor's Eide Bailley LLC, in presenting the results of their audit. The 2016 CAFR, reports and corresponding narrative can be located in the packet of the July 21, 2017 Finance Committee Meeting. BUDGET AMENDMENT — PRESENTATION BY PUBLIC WORKS Public Works Director Kurt Kowar presented to the Finance Committee Members a summary of his $1.575M budget amendment that will be presented to the full City Council on August 15, 2017. Director Kowar stated that he received approval of these one-time expenses from the Utility Commission earlier that morning, noting he was aware that the method by which this amendment came about has not been ideal. Director Kowar stated that a number of factors, including implementation of bi-annual budgeting, staff capabilities, and staff capacities, all contributed to this untimely, but necessary budget amendment. 3