06-12-00 Worksession
CITY COUNCIL MEETING MINUTES
Richfield, Minnesota
Special Study Session
June 12, 2000
CALL TO ORDER
The meeting was called to order by Mayor Kirsch at 6:00 p.m.
ROLL CALL
Members Present:Martin Kirsch, Mayor; Sue Sandahl; Susan Rosenberg; Kristal
Stokes and Russ Susag.
Staff Present:Samantha Orduno, City Manager; Steven Devich, Administrative
Services Director; Thomas Ferber, City Clerk; Dan Scott, Public
Safety Director; and Chris Regis, Finance Manager.
Item # IPRESENTATION OF 1999 COMPREHENSIVE ANNUAL FINANCIAL
REPORT S. R. NO. 11
Tom Hodnefield, HLB Tautges Redpath, Ltd., auditors for the City, presented a
report to the City Council and answered questions regarding the following:
Comprehensive Annual Financial Report (CAFR)
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Financial statements
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Footnotes
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Supplemental information
x
Unqualified (“clean”) opinion on the General Purpose Financial Statements
Schedule of Expenditures of Federal Awards and Auditors Reports (Single Audit)
x
Results of testing internal control and compliance over: State status,
government auditing standards and federal programs
-No findings
Special Study Session Minutes-2-June 12, 2000
Financial Analysis and Management Considerations Executive Summary
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The City of Richfield was awarded the Certificate of Achievement for
Excellence in Financial Reporting for each of the last several years.
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Since 1998, investments have been required to be reported at fair value.
During 1999, the City incurred a reduction of investment income consistent
with market conditions.
x
The City has established an investment policy to minimize risk to market and
to manage other aspects of investing.
x
The State legislature lowered tax capacity rates for residential,
commercial/industrial and several other property classes in 1997, 1998 and
1999. The effect of this change is to shift the property tax burden between
classes of property.
x
The collection rate for property taxes is excellent.
x
Delinquent tax increment receivables are now recorded on the financial
statements. For future years we recommend this balance be reconciled to
the County recorded balance.
x
We are recommending that cities review their “readiness” for a potential
Office of State Auditor (OSA) audit of TIF districts and, if appropriate, modify
practices to assure compliance.
x
The City has consistently experienced excellent special assessment
collection rates.
x
State aids (including HACA and other state aids) and local property taxes
have represented over 82% of revenue sources of the General Fund. As
such, we recommend the City consider: 1) periodic reviews of other revenue
sources, and 2) carefully monitor proposed law changes.
x
The City adopted a General Fund fund balance policy in 1999. We
recommend the City continue efforts to meet the targeted balance.
x
The City received a $7.6 million refund from the former PERA Police and
Fire Consolidation Fund.
x
We recommend the City review the accounting presentation of the Tourism
Administration Fund.
x
The Storm Sewer Utility Fund continues to have a cash deficit. We
recommend the City develop and maintain long-term projections to assure
matching revenue sources on a timely basis.
x
We recommend the City develop a plan to address the deficits in the Ice
Arena, Swimming Pool and Special Facilities Recreation Funds.
x
We recommend the City continue efforts to correct noted problems with
liquor inventory reports.
x
We recommend the City review all amounts reported as reserved equity for
proper presentation.
x
Several prior year recommendations were addressed by the City in 1999.
x
New accounting standards will significantly impact internal accounting and
external financial reporting of the City. For Richfield, these standards are
required to be implemented for 2003. We recommend the City begin the
process of implementing these standards as soon as possible.
x
We have general information and recommendations regarding arbitrage, tax
abatement, records and information management and date practices.
Special Study Session Minutes-3-June 12, 2000
Larry Wozniczka, 6744 Wentworth Avenue, asked if the auditor had reviewed a
question he had regarding the content of a budget document publication related to fund
reporting and City Charter provisions related to a balanced budget.
Tom Hodnefield, HLB Tautges Redpath, Ltd., reviewed the reporting of different
funds indicating the impact of reporting Debt Service Funds and Capital Project Funds
together with other funds as it relates to State reporting and Charter provisions.
Item # IIUPDATE AND TIMELINE FOR POTENTIAL CABLE TELEVISION
FRANCHISES IN RICHFIELD S. R. NO. 12
Administrative Services Director Devich reviewed Staff Report No. 12 regarding
written requests received by the City and the Southwest Suburban Cable Commission
(SWSCC) from Wide Open West (WOW) and Everest Communications for a franchise to
construct, operate and maintain a cable communications system in the city. He reviewed
a proposed schedule for processing the requests in compliance with Minnesota Statutes.
Item # IIIANNUAL MEETING WITH HUMAN RIGHTS COMMISSION
Human Rights Commission Members present:
Anthony BibusRichard Oliver
Tashika SykesBarbara Whiteman-Brown
Brent PaviaOdell Brown, Jr.
Brent Pavia and Tashika Sykes, members of the Human Rights Commission,
presented the Commission’s Annual Report to the City Council including the following
information regarding their mission and focus:
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mission to develop and implement programs that enhance the advancement of
human rights in the community and to promote an awareness and appreciation
for our multi-cultural diversity
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Gene and Mary Jacobsen Outstanding Citizen Award
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restructuring and reorganization of the Commission
x
community outreach
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creation of a Commission Manual
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budget issues
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bylaws change
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Richfest Multi-cultural Diversity fair
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Sun-Current articles
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Cinco de Mayo Celebration
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Richfield 4th of July Parade
x
No Fault Grievance Mediation (none to date)
Special Study Session Minutes-4-June 12, 2000
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League of Minnesota Human Rights Member
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update of HRC internet site
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review sessions of Hate Crimes Response Plan
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Community Circle panel discussions
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plan for on-going mediation training
Council Member Susag suggested that the Human Rights Commission develop a
plan for ways for other City Commissions to be involved in human rights issue.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 6:56 p.m.
Date Approved:
Martin J. Kirsch
Mayor
Thomas P. FerberSamantha Orduno
City ClerkCity Manager