07-23-1984 SpecialRICHFIELD CITY COUNCIL
SPECIAL MEETING
JULY 23, 198
5:3o P.M.
CALL TO ORDER
Mayor Hamilton called the meeting to order at 5:30 P.M.
ROLL CALL
Council Members Present: Bunce, Kirsch, Ludeman, Priebe and
Hamilton
Staff Present: Acting City Manager, Tom Morgan;
Administrative Services Director, Ron
Rankin; Finance Manager, Jean Mitchell;
Community Services Director, Don Fondrick.
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1. DISCUSSION OF 1983 ANNUAL•FINANCIAL REPORT AND AUDITOR'S
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Ron Rankin introduced Mr. John Frees of Cummings, Keegan and
Company, the City's auditors. Mr. Frees reviewed the Auditors
Management Letter with the City Council and discussion followed
concerning the various points in the Letter, including
recommendations for improvement in taking the municipal liquor
inventory, developing an automated bank reconciling function,
continuing to develop an automated property and equipment
system, the improvement of certain computerized reports, and the
establishment of an imprest payroll checking account. Mr. Frees
and City staff updated the council concerning progress that had
been made on some of these recommendations and the timetable for
implementation of others.
Mr. Frees reviewed highlights of the introductory section of
the Annual Financial Report. He noted that for 1983 the City
has implemented NCGA Statement 3 (Defining the Governmental
Reporting Entity), and has, therefore, included the Housing and
Redevelopment Authority of Richfield in the Annual Financial
Statements. It was further noted that a separate financial
report is issued for the HRA. The City has oversight
responsibility for its operations and the City Manager serves_ as
its Executive Director.
Mr. Frees said the Redevelopment Bonds of 1982 were retired
by the issuance and sale of Redevelopment Refunding Bonds of
1983 on April 20, 1983. The net interest rate of 8.22 for the
refunding bonds compared to 11.0~4~ for the original
redevelopment bonds created a sizable interest cost reduction.
However, Mr. Frees noted that the refunding bonds created a
considerable current expense reflected in the 1983 financial
reports, which would be offset by future reductions in interest
cost to be paid.
Special Council Meeting Minutes -2- July 23, 1984
Mr. Frees also commented on the City's cash management,
noting that the average yield on maturing City investments
during the year was 9.6~ and that the City was able to maintain
a considerable margin between the cost of funds borrowed and the
return on its investments.
It was also noted that the 1983 financial report for the
first time sets up a liability for accrued but unpaid vacation
and sick leave. It was further noted that the 1884-$5 budgets
would begin to include these expenses.
Mr. Frees reviewed with the City Council Members a set of
graphs which had been prepared by his firm to illustrate revenue
and expenditure information, as well as a variety of other
statistical indicators of the financial health of the City. It
was noted that significant information is also available in the
statistical section of the annual report which provides a ten-
year history of revenue, expenditure and other information
concerning the City of Richfield.
M/Ludeman, S/Bunce to adjourn the special meeting of the
City Council.
Approved : August 13, 1984
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Motion carried 5-0.