06-09-2014 Council Packet - Laserfiche WebLink

Home Browse Search

MINUTES OF THE ORONO CITY COUNCIL Tuesday, May 27, 2014 7:00 o’clock p.m. _____________________________________________________________________________________ Page 4 of 23 (4. SALE OF GENERAL OBLIGATION BONDS SERIES 2014A – RESOLUTION NO. 6405, Continued) Anhut stated specific to the refunding portion, Ehlers had projected $45,000 in savings, but given the previously listed factors, that amount has been increased to $54,000 over the next three and a half years. Anhut stated based on the excellent interest rate received, Ehlers would recommend the City Council move forward with the bond sale to Raymond James. McMillan thanked Staff and all previous City Councils who have run Orono in a fiscally conservative manner, which is one of the main reasons Orono has maintained its AAA rating over the years. Bremer moved, Levang seconded, to adopt RESOLUTION NO. 6405, a Resolution Awarding Sale of $5,380,000 General Obligation Bonds, Series 2014A, Fixing the Form and Specifications Thereof, Providing for Their Execution and Delivery, and Providing for Their Payment. VOTE: Ayes 5, Nays 0. PRESENTATION 5. 2013 COMPREHENSIVE ANNUAL FINANCIAL REPORT Dennis Hoogeveen, Clifton, Larson, Allen, stated Minnesota Statutes require that the City have an annual audit performed by a certified public accountant or the State Auditor. Clifton, Larson, Allen was appointed by the City to perform the audit for the year ended December 31, 2013. Accounting principles generally accepted in the United States require that City management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of a letter of transmittal. Hoogeveen stated one of the letters before the City Council is called the Required Communications Letter, which is a letter required by the government to those responsible for governance of the City. Hoogeveen stated the audit provides a reasonable but not absolute assurance on the financial accuracy of the financial statements. Clifton, Larson bases its audit on a random sampling basis and then zeroes in on areas that might pose a significant risk. Hoogeveen noted in 2013 a new accounting policy was adopted by the Government Auditing Standards Board which changed the formatting of how the balance statement, statement of net position, is laid out. Hoogeveen indicated due to the change, some items that used to be considered liabilities are now considered deferred inflow but the basic accounting remains the same. Hoogeveen stated it is basically a terminology change and does not have a significant impact on the City’s financial statements. The Required Communications Letter also reviews the fact that some significant estimates are required in preparing a financial statement for a government entity. Those include the useful life of assets, value of investments, and the amount of post-employment benefits. Hoogeveen noted Ehlers is required to report to the City Council if Staff was not cooperative in performing the audit. Ehlers is pleased to report that Staff was very cooperative during the audit process and appreciates all the fine work that the finance department did in keeping the City’s financial records over the past year and their cooperation during the audit. Item #03 - CC Agenda - 06/09/2014 Approval of Council Minutes 05/27/2014 [Page 4 of 23]