Wyoming city audit completed
Wednesday, 09 June 2010
Alice Pickering
Wyoming Reporter
Results of the 2009 Wyoming city audit were presented at the city council meeting Tuesday, June 1. David Mol, HLB Tautges Redpath, Ltd. presented highlights of the audit.
Because the city staff is small there are some difficulties with segregation of duties, Mol reported.
One item related to the use of credit cards. Mol said receipts needed to be more closely monitored. In answer to questions from council members City Administrator Craig Mattson said the city is making efforts to move to purchase orders and planning ahead for purchases.
Deficits were revealed in some accounts. Stagecoach Days continues to show a deficit. It may be possible to include part of the costs in the city budget in the future.
Council member Linda Yeager complimented Mattson for improving city reserves. She was concerned that about journal entries and disbursement records. She thought the city should be budgeting on an annual basis for the event. Council member Russ Goudge said many of the difficulties appear to be ones of reinforcing policy related to purchases.
Mol recommended adopting a general fund reserve policy. While city reserves have improved, the amount available is $1,382,148, about $75,000 shy of the recommended amount of $1,457,000.
The reserve is the source of city cash flow between the July and December payments from Chisago County. Mol recommended the city consider adopting a formal investment policy.
TIF action
Council voted to authorize the transfer of the increment for Tax Increment Financing Districts No. 1 and 3-2 to reduce a deficit in TIF District No. 3-1.
Thomas Denaway, analyst for Springsted, reviewed the TIF District 3-1, Viking Commons Addition. The review was to determine if the district would qualify for special pooling authority as a deficit district, and to determine if fund balance of Economic Development District 1 was available for pooling.
Changes in tax laws in 2001 resulted in downward changes in the class rates for various types of property. A lower property tax was collected in TIF 3-1 than was originally anticipated. This has made it harder for the city to raise money to pay the tax increment which helps the developer with development costs within agreement time.
In 2003 legislature made changes to help off-set the lost taxes. One change involves pooling proceeds in TIF districts. By meeting certain criteria, a city can authorize pooling among TIF districts to offset deficits from lower tax rates.
This means the city can legally transfer pooled funds to pay TIF District 3-1. No extra money is being paid to the district but the costs of development can be redistributed among eligible expenses. The amount to be transferred to TIF 3-1 is $231,563. The vote was 5-0.
Other Reports
Delmonico Park developers failed in their attempts to gain a one-year extension on submission of preliminary and final plats. According to Attorney Mark Vierling, the development agreement for the plat has not been completed and the final plat has not been recorded.
Vierling recommended extension be denied. Chris Hoyt, new to the project, requested the extension, believing that six months would be helpful.
Council member Roger Elmore made the motion to deny the extension and have attorneys draft the findings of fact. The vote was 5-0.
Council adopted a resolution approving the release of a letter of credit for Xccent. Improvements requested by the city have been completed and the property inspected, according to Fred Weck, building official.
Weck also reported the certificate of occupancy for the new building has been issued. He recommended the $50,000 letter be released.
Mediation sessions related to the special assessment appeals for the 257th Street and utilities improvements have been scheduled. The appeal session for Rudy and Mary Olson is scheduled June 22, while the Doug and Ethel LeVasseur appeal is set June 29, 2010.
Wyoming Volunteer Fire Department took delivery of its new fire engine, tanker/pumper truck, on May 10. Council authorized the department to declare fire engine No. 20 surplus equipment so it may be advertised for sale. Dennis Berry, fire chief, made the recommendation.
Council approved changing Mike Jensen’s status from probationary to full-time public works employee. Jensen was hired on probationary basis November 16, 2009. Jason Windingstad, public works superintendent, recommended the action based on Jensen exceeding performance expectations, pride in work and eagerness to learn.
Richard Ayers once again asked about the schedule for street repairs, specifically on Everton Circle. Engineer Mark Erichson said the street rating for the city has been completed and there is no date yet set for the repairs on Everton. Funding is not available.
Yeager reported that managers of the Comfort Lake-Forest Lake Watershed District are seeking a replacement for Randy Anhorn, administrator. Anhorn is leaving the position in July.
Goudge reported that the Chisago Lakes Joint Sewer Treatment Commission is finalizing a decision about an assistant waste water operator position. Tom Doughtery recently retired after 30 years of service.
Rebecca Hostetler, librarian at Giese Memorial Library, announced a community event on August 14. As part of the event, Second Hand Fiddle Band will provide entertainment. Hostetler made a request of the police department to have reserve officers direct traffic.
Other business
In other business, the council:
•Rescheduled the August 3 meeting to begin at 5 p.m. instead of 7 p.m. so council members can participate in the National Night Out events.
•Unanimously authorized a pay voucher for the city’s share of CR-22, in the amount of $3,362.50 for work on the improvement project.
•Authorized payment of the bills, payroll and journal entries for the interval May 19, 2010 to June 1, 2010. |
