08-22-2022 Council Packet - Laserfiche WebLink

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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, August 8, 2022 6:00 o’clock p.m. _____________________________________________________________________________________ Page 2 of 5 Bonnie Schwieger from Abdo, Eick & Meyers, LLC gave a presentation noting they provided a clean opinion on the financial statements consistent with what the City has received in the past. The auditors were able to obtain all audit evidence and did not run into any significant issues during the audit, and everything was in good order regarding internal control processes. Ms. Schwieger noted one finding in the audit as they had to record a material audit adjustment related to an inter-fund loan that was passed previously in a TIF district. She stated some of the TIF district transactions can be complex in nature and have a higher risk associated with them for getting recorded in the financial statements. She noted it was brought to their attention by the Finance Staff that it was not recorded back in 2017 and in 2022 was counted as a material audit adjustment. They do not have any concerns about it affecting the other operations of the City but it does need to be disclosed. From a legal compliance aspect, things were very clean, as well. Ms. Schweiger spoke about General Fund balances, as well as budget-to-actual revenues which were significantly over budget and is something they have seen in many cities in this area as much of the development occurring is not originally budgeted for. She spoke about grants received as well as golf course revenues, and the transfer out to capital reserve funds for future capital fund purchases, general fund revenues by type, expenditures by type, and special revenue fund balances. Ms. Schwieger specifically noted the Park Fund which has a negative balance but spoke about many recent park projects which are expected to be funded with future park dedication fees. She clarified for the senior housing TIF fund and the HRA general fund, that is where the prior period adjustment was recorded which is why there are large swings there. Ms. Schwieger shared about internal service fund cash balances, water fund and rate changes, sewer fund, storm water fund, recycling fund, cable fund, and spoke about cash and investment balance being spread out over many areas and paying for many different resources. She spoke about key performance indicators and noted each community is unique. Finance Director Olson gave a presentation showing they are at 66.5% of budget while being only 58% through the year indicating they have been able to stay ahead of the budget. He noted they added efficiency in the finance department implementing Check 21 on utility accounts and regular accounts. PUBLIC WORKS REPORT Public Works Superintendent Goman shared that public works has been very busy with annual sewer cleaning in District 4, noted they are one staff member short due to a resignation, and that the department is beginning to prepare for winter. FIRE DEPARTMENT REPORT 13. FIRE DEPARTMENT EQUIPMENT PROCUREMENT – CMD 1 AND CMD 2 (22-047) Seals noted the City sent communication to Long Lake saying Orono would love to buy two new pieces of equipment at 100% with contingencies. Long Lake said no thank you and now the City Council must decide what the response is. After speaking with the Fire Chief, Seals believes these vehicles are needed and Seals still thinks they should purchase them noting they are hard to get right now. Mayor Walsh clarified the contingencies noting that Orono would purchase them 100% and want to make sure that Long Lake does not have claim to Orono’s equipment. Johnson watched the Long Lake meeting and shared that their conversation sounded surprised that Orono has been purchasing other equipment including two other engines that the City has purchased 100% and