Winsted City Council Minutes
City of Winsted
City Council Special Meeting
June 26, 2007
Present: Mayor Steve Stotko
Council Member Tom Ollig
Council Member Bonnie Quast
Council Member Dave Mochinski
Absent: Council Member Tom Wiemiller
Staff Present: Brent Mareck, City Administrator
Deb Boelter, City Clerk-Treasurer
Mayor Stotko stated that the purpose of the Special meeting is to review the City of Winsted’s 2006 audit.
Paul Harvego, Conway, Deuth & Schmiesing, PLLP, presented the 2006 audit.
Harvego stated that the audit is presented in accordance with the new auditing standards issued by the Office of the Minnesota State Auditor (OSA). Harvego distributed a copy of the new auditing standards.
Boelter distributed a action response plan for the Schedule of Findings on Accounting Issues and Internal Controls.
Harvego presented the 2006 audit and discussed the following items with the Council:
a. Schedule a workshop to discuss airport funding and the future use of the airport.
b. Conduct a joint meeting with the Airport Commission to discuss the future of the airport.
c. Identify potential funding options; such as, increased land lease fees, create user fees, General levy funding, and/or an inner-fund loan.
Ollig asked if other airports assess hangar owners when they do improvement projects. Boelter will obtain information from other airports and present it to the City Council at a later date.
3. The Refuse Fund deficit has been decreased due to the refund from Waste Management; however, a deficit remains from incorrect billings from previous years so Harvego recommended that the City transfer money from the General Fund reserve to eliminate the deficit.
4. The General Obligation Improvement Bonds of 2002 may be underfunded by $62,000. Mareck explained that there has not been a transfer from the Water and Sewer Funds for oversized lines installed in the Grass Lake Farm Housing Addition. The transfer would eliminate the $62,000 deficit. Mayor Stotko asked when the City should make the transfer. Harvego recommended in 2008.
5. The General Fund budget came close to budgeted amounts in 2006. The General Fund reserves are at a level that would allow the City to fund operations for a six (6) month period.
6. Pleased with the status of the Water and Sewer Funds. Recommended that the City Council regularly evaluate the City’s Capital Improvement Plan and adjust water and sewer rates accordingly to fund any proposed future projects and expenses.
Harvego presented the Schedule of Findings on Auditing Issues and Internal Control and discussed the following items with the City Council:
3. Minnesota State Statutes requires construction contracts over $75,000 to have performance and payment bonds. Harvego noted that this requirement was waived for the construction of the Public Works Facility. Mareck stated that the contractor, RAM Building, Incorporated, recommended that the performance and payment bonds be waived. Mayor Stotko asked if the City will receive a fine from the State of Minnesota for noncompliance of the State Statutes’ requirements for performance and payment bonds. Harvego stated no. Mareck stated that the City will require performance and payment bonds on all future construction contracts over $75,000.
Quast motioned to approve the City of Winsted’s 2006 audit. Mochinski seconded.
Motion carried 4-0.
Mareck asked the City Council to consider scheduling a Special Closed City Council meeting after the July, 3, 2007 Regular City Council meeting to discuss a personnel matter.
Ollig motioned to schedule a Special Closed City Council meeting after the July, 3, 2007 Regular City Council meeting to discuss a personnel matter. Quast seconded. Motion carried 4-0.
Mochinski motioned to adjourn. Quast seconded. Motion carried 4-0.
Deborah R. Boelter