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