HomeMy WebLinkAboutCouncil Minutes - February 14, 2022
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Mayor Jerry Merrill
Council Members:
Robert Chambers Jordan Busby
Mikel Walker Tisha Flora
Colin Erickson Bryanna Johnson
City Staff:
Stephen Zollinger – City Attorney
Matt Nielson – Finance Officer
Keith Davidson – Public Works Director
Alan Parkinson – Planning & Zoning Administrator
Scott Johnson – Economic Development Director
Deborah Lovejoy – City Clerk
12:00 P.M. - 2:00 P.M. City Hall Front Conference Room
Roll Call of Council Members:
Attending: Council Member Johnson, Council Member Erickson (via phone), Council President
Busby and Mayor Merrill.
Review Final Draft and Approval of Fiscal Year 2021 Audit – Rudd & Company and Finance Staff
Finance Officer Nielson introduced Heather Porter and Josh Bingham with Rudd & Company. He asked
them how the audit process went this year. Mrs. Porter stated there were some minor issues due to the
financial software change. Finance Officer Nielson said those issues should be resolved and the financial
reports created in the new software will facilitate the process in future years. Once this year’s audit is
complete the Finance Department will mirror the financial statements during the year to make the process
more efficient. Some of the supplemental information will be more difficult to process due to not being able
to use the financial reports they have used the last 15 years in the new software.
Mr. Bingham said the audit report is like last year’s, there weren’t many major changes. He reviewed the
Independent Auditor’s Report and the Summary of Opinions. He mentioned the two qualified items in the
Opinion Unit.
Discussion regarding the unmodified options and qualified opinion. Finance Officer Nielson explained the
“qualified” opinion units are not on a single column in the financial statements like the General Fund, Street
Fund or Emergency Services. They are placed in other governmental funds; however, all the data is available
for the unit.
35 North 1st East
Rexburg, ID 83440
Phone: 208.359.3020 x 2101
Fax: 208.359.3022
deborahl@rexburg.org
www.rexburg.org
“Special” City Council Minutes
February 14, 2022
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Finance Officer Nielson reviewed the financial highlights on page 4 and page 5 of the Management’s
Discussion and Analysis Report. He noted the net increases in the governmental-type net and business-type
net position.
Finance Officer Nielson reviewed page 6 of the report that indicate the large expenditure in Fiscal Year
2021.
Council Member Busby asked about the purchase in Contributing Captial-Engines at Legacy Flight
Museum item. Finance Officer Neilson replied, the museum did not purchase the airplane engines, they
were donated to the museum. The value of the engines needs to be shown in the financial reports as a
contributing revenue and show the expense as well for accounting principles.
Finance Officer Nielson reviewed page 8 of the report indicating the Long-Terms Liabilities. In this
section the LIDs are shown at zero and he could have taken them off the report; however, he left them to
indicate there are no outside warrants or bonds for LIDs. The obligations under Capital Lease are the golf
carts that are being paid off.
Discussion regarding the Persi Net Pension Liability. Finance Officer Nielson mentioned the Water DEQ
Loan. They are in the process of getting their last draw. Once the last draw is done, they will finalize the
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terms of the loan. The loan will possibly be a 30-year loan with a 1.75% interest rate. The city would be
allowed to pay off the loan as quickly as possible without being penalized.
Finance Officer Nielson reviewed page 9 the Statement of Changes in Net Position (2021 vs. 2020) page
11 Parks Recreation and Cultural Arts. Council President Busby questioned if it is feasible to continue
leasing the Zone. Finance Officer Nielson mentioned the contract will expire at the end of this year and City
Council will need to decide to continue with the lease agreement. The lease rate is great considering the
amount of space that is leased.
Finance Officer Nielson said the golf courses had a tremendous year in revenues; however, there were
many capital items completed. Rexburg Rapids also had a tremendous year. The franchise fees continue to
be transferred to the streets fund.
Finance Officer Nielson reviewed page 16 the Street Fund Budgetary Highlights and page 18 the Actual
Total Expenses chart. The County Road and Bridge funds have continued to drop. He has contacted
Madison County to determine the reasons why the fund continues to drop. In the Urban Renewal
Reimbursements, funds were not used for the roundabout project by Pioneer Road.
Council President Busby questioned how often the funding percentages change among the three entities
funding the Emergency Services Department. Finance Officer Nielson said the percentages have only
changed once since he started working for the city. There is an adjustment processed every year based on
the value of the property and population growth.
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Finance Officer Nielson noted the Federal Grants in the Actual Total Revenue were at 8,121 that is the
highest amount he has seen.
Finance Officer Nielson reviewed the Actual Operating Expenses and Actual Operating Revenue charts.
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Finance Officer Nielson reviewed some of the Basic Financial Statements. One thing to consider when
reviewing the statements is the accrual verses the cash basis. Some items may include depreciation other
items may not. When the word accrual is stated, they are recognizing those revenues and or expenses even
though they may not have received them. Mr. Bingham said these statements are required by the federal
government.
Finance Officer Nielson reviewed the Balance Sheet. The reason these are listed in this maner is to
hightlight the purpose of a city, it is not in business to make money, it’s in business to provide services so
the expenses are shown first.
Finance Officer Nielson reviewed the Statement of Revenues, Expenses and charges in Fund Net
Position and Statement of Cash Flow reports.
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Finance Officer Nielson reviewed the Notes to the Statements.
Finance Officer Nielson reviewed the required supplementary information.
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Mayor Merrill said the city budget needs to be kept in line, so the property taxes do not continue to
increase. As a city we need to be as frugal as possible, operate as lean as possible and keep the budget under
control. The city has been operating this way and will continue to do so to keep costs down.
Adjournment 1:50 P.M.
APPROVED:
________________________________
Jerry Merrill, Mayor
Attest:
_____________________________
Marianna Gonzalez, Deputy Clerk