Agenda - Council - 07/09/2024 - Laserfiche WebLink

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Finance Director Lund explained that it was due to the investment earnings as the water and sewer took a majority of the loss down to market value. Councilmember Musgrove asked if she could email any questions she has once she is able to review the whole report. She asked how the pavement management fund had decreased last year. Finance Director Lund explained that the bond money from a few years ago went into this fund as they constructed a lot of roads in 2023. Councilmember Musgrove asked about the COVID-19 dollars that were received in 2023 as she thought they were done receiving these dollars. Finance Director Lund explained that they had $750,000 left that was used for the roads. She shared that when they use these dollars they get recorded as revenue. Councilmember Musgrove asked for an example of what a material weakness would be. Mr. Nielson shared that a common weakness that some smaller cities have is that they do not have enough individuals involved in the financial reporting process. He added a weakness could also be the auditor discovering something that was not recorded properly on accounts receivable. He asked that all communication and questions be sent to Finance Director Lund and she can distribute the responses back to all Councilmembers. Councilmember Woestehoff noted that according to the report, the City has $104,000,000 in investment accounts. He asked if this automatically gets reinvested every time something matures. Finance Director Lund explained that they have a pool investment schedule and at the end of the year, they see what is in each balance and they adjust the investments accordingly. City Administrator Hagen added that for the water treatment plant they have been collecting money through the years and saving up for this project. He noted that the City is not over taxing just to invest more dollars, they are saving up for something. The consensus of the Council was to accept the audit report and allow Mr. Nielson to briefly present the findings at the Council Meeting. 2.06: Discussion Regarding the Annual Performance Review of the City Administrator, an Individual Who is Subject to the City Council's Authority - May be Closed to the Public City Administrator Hagen reviewed the Staff report in regard to the City Administrator annual performance review and requested to move to Closed Session to discuss the City Administrator annual performance review. The meeting was recessed to Closed Session at 6:39 p.m. City Council Work Session/June 25, 2024 Page 7 of 8