City Council Minutes 07-14-2014 SpecialMINUTES
SPECIAL WORKSHOP MEETING — MONTICELLO CITY COUNCIL
Monday, July 14, 2014 — 5:45 p.m.
Mississippi Room, Monticello Community Center
Present: Clint Herbst, Lloyd Hilgart, Tom Perrault, Glen Posusta, Brian Stumpf
Absent: None
Others: Wayne Oberg, Jeff O'Neill
1. Call to Order
Mayor Herbst called the special meeting to order at 5:46 p.m
2. Purpose of Workshop: Review of 2013 Audit
Wayne Oberg gave a short presentation about some of the items covered in the 2013
audit. He reviewed some of the 2012 audit adjustments leading into 2013. Regarding the
investment horizon, he noted that our investment values go down when interest rates go
up. He showed a comparison between 2011 and 2012 investment portfolios. Lloyd
Hilgart asked if Wayne Oberg had sold some of the investments, and Wayne explained
that he had brought the long term investments down to reduce the risk, but none were
sold at a loss. Wayne Oberg noted that there will be some additional changes in
investments during the next year.
Wayne Oberg discussed the prior period adjustments in 2012 and 2013. There was an
adjustment made in 2012 for developer escrow deposits in the amount of about $600,000.
For 2013, there was an adjustment made for special assessments to bring them into
balance with the county. The adjustment was in the amount of $3,282,241; however, this
did not affect the city cash balances as this was a change in deferred revenues with an
offset to assets.
Wayne Oberg explained that there was a change in accounting principles that affected the
city's financial statements. This was a write -off of unamortized deferred charges related
to the bond issue for FiberNet in the amount of about $430,000. This had been shown as
an asset, which was determined should be considered an expense under the new GASB
Statement No. 65.
Wayne Oberg noted some fund reclassifications from 2013:
• Cemetery Fund changed from Enterprise to Special Revenue
• Deputy Registrar Fund changed from Special Revenue to Enterprise
• Parks & Pathway Fund changed from Special Revenue to Capital Project
• Water and Sewage Access Funds closed to respective utility funds
• Capital Revolving Fund closed to Capital Projects and Internal Services
• Created Internal Service Funds for equipment purchases and IT services
management
City Council Special Meeting Minutes — July 14, 2014 Page 1
3. Adjournment
TOM PERRAULT MOVED TO ADJOURN THE SPECIAL MEETING AT 6:09 P.M.
LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED 5 -0.
Recorder: Catherine M. Shuman pjw+aJ
Approved: July 28, 2014
Attest:
ChTyAMnistrator
City Council Special Meeting Minutes —July 14, 2014 Page 2