09-09-2002 Council Packet - Laserfiche WebLink

Home Browse Search

MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, August 26,2002 7:00 o ’clock pm 4. 2001 Comprehensive Annual Financial Report - Ken Malloy Ken Malloy, of the City’s auditing fimi, accompanied by Finance Director Tom Kuehn, presented an overview of the 2001 Comprehensive Annual Financial Report. Malloy stated that the goal during the April/May review period was to provide a clean and unqualified opinion, test internal controls, and compliance issues. He was pleased to report no finings, which is an ideal situation. He had one concern, that the City had not yet obtained certificates fiom each of its brokers who handle investing for the City, which should be provided on an aimual basis. With regard to the Management Report, Malloy explained that p.1-2 summarized legislation for 2001, however, due to government aid and levies, there would be many changes next year. The upcoming tax incremental financing will be a new area for Orono and Malloy cautioned the City to oversee that area carefully, as well as, the use of electronic fund transfers and credit cards. Malloy explained that page 3 of the Management Report referred to property taxes and reform, while p. 4 reflected changes in market values, providing a unique profile with the types of properties in Orono; p.S contained the property tax rates; p.6 a government funds overview compared to statewide averages; p.7 showed the intergovernmental charges for services, reflecting additional revenue offset for public safety expenditures. White acknowledged that the Park budget is below the state average. Malloy stated that, in general, Orono is close to statewide averages on what is spent, however, each City can allocate costs differently, which could explain the park balance. He felt that SI.6 million represented a good fund balance in the General Fund; especially, in light of the fact tax revenues only come in twice a year. He did caution the City that natural disasters could deplete these balances rather quickly. Malloy continued with p.lO, depicting General Fund revenue, from which half the revenue is obtained via taxes and the other half firom other sources, which has been level for virtually 10 years. Page 11 reflected expenditure trends, including utility funds, general fund, water and sewer funds, etc. He indicated that a SI million Water Fund balance for repair and improvements was available, as was a Sewer-Operating Fund balance of SI.7 million. While on p.l4, Malloy pointed out, the City struggled, as did other municipalities, with regard to Golf Course operating revenues. PAGE 3 of 22 1 i