07-14-2015 CCM WORKSHOPHUTCHINSON CITY COUNCIL
REVIEW OF 2014 FINANCIAL REPORT WORKSHOP
MINUTES
TUESDAY, JULY 14, 2015 AT 4:30 PM
CITY CENTER — COUNCIL CHAMBERS
1. Call to Order
Mayor Forcier called the workshop to order at 4:40 p.m. Members present included Mary
Christensen, Bill Arndt and Chad Czmowski. Member absent was John Lofdahl. Others present
were Matt Jaunich, City Administrator, Marc Sebora, City Attorney and Kent Exner, City
Engineer
REVIEW OF 2014 FINANCIAL REPORT
2. 2014 Financial Report
Andy Reid, Finance Director, introduced Kyle Meyers of Abdo, Eick & Meyers who presented
the City's 2014 audited financial report.
Kyle Meyers presented before the Council. Mr. Meyers explained that the auditing firm
completes an audit opinion which includes a testing of Minnesota legal compliance, internal
controls over financial reporting and other law provisions, regulations, contracts and grant
agreements. The audit opinion is clean and there were no findings. The City has received the
GFOA certificate of achievement award for the 18th year in a row. Mr. Meyers reviewed specific
financial results from the completed audit. Standard & Poor's bond rating of the City is "AA-".
The City has retained a general fund balance between 55-60% for the last five years. The City's
policy is 40%. The State Auditor and League of Minnesota Cities recommend that an
unrestricted fund balance reserve be between 35-50% for cash flow purposes. Mr. Meyers
detailed general fund revenues by source and other facets of the general fund as well as the make
up of the special revenue funds. Mr. Meyers reviewed the debt service requirements for the next
10 years as well as the capital projects funds.
Mr. Meyers went on to review the enterprise fund cash flows as well as the internal service funds.
Lastly, Mr. Meyers spoke about future accounting standards.
3. Adj ournment
Motion by Czmowski, second by Arndt, to adjourn the workshop at 5:20 p.m. Motion carried
unanimously.
ATTEST:
Gary T. Forcier
Mayor
Matthew Jaunich
City Administrator