05 17 21 Work Session MinutesCity Council Work Session May 17, 2021
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City of New Hope
4401 Xylon Avenue North
New Hope, Minnesota 55428
City Council Minutes
Work Session Meeting
May 17, 2021
Civic Center Conference Room
CALL TO ORDER The New Hope City Council met in work session pursuant to due call and notice thereof;
Mayor Hemken called the meeting to order at 6:30 p.m.
ROLL CALL Council present:
Kathi Hemken, Mayor
John Elder, Council Member
Andy Hoffe, Council Member
Michael Isenberg, Council Member
Jonathan London, Council Member
Staff present:
Kirk McDonald, City Manager
Vicki Holthaus, AEM
Valerie Leone, City Clerk
Stacy Woods, Assistant City Attorney
2020 AUDIT AND
COMPREHENSIVE
FINANCIAL REPORT
Item 11.1
Mayor Hemken introduced for discussion item 11.1, Review 2020 Audit and
Comprehensive Annual Report with AEM.
Mr. Kirk McDonald, city manager, explained that Vicki Holthaus of AEM is present to
review the audit with Council and that Bill Lauer of MMKR will attend the May 24
Council Meeting when Council is asked to accept the report. Mr. McDonald noted the
audit went well and there were no findings or deficiencies.
Ms. Vicki Holthaus, Abdo, Eick & Meyers, LLP (AEM), reviewed financial highlights
of 2020:
The assets of the city exceeded its liabilities by $85,039,129 at the close of the
year, of which $24,251,116 (unrestricted net position) may be used to meet the
city’s ongoing obligations to citizens and creditors.
Combined ending fund balances were $27,455,251, a decrease of $1,795,737
compared to prior year. Approximately 24.7 percent of this total amount is
available for spending at the city’s discretion.
Unassigned fund balance of the General Fund was $8,901,587 or 63 percent of
total General Fund 2020 expenditures and transfers out. The city’s policy is to
maintain a 42 percent reserve.
The city’s total bonded debt decreased by $2,612,989 (4.6 percent) during the
current fiscal year. The key factor of the decrease was the scheduled principal
and interest payments.
Ms. Holthaus explained the general fund expenses were under budget as a result of
the pool not opening due to the COVID‐19 pandemic, vacancies in the police
department, and cancellations of various culture and recreation programs.
City Council Work Session May 17, 2021
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Ms. Holthaus commented on the fund balances of governmental funds. She stated the
decrease was primarily in restricted fund balances which reflects the spend down of
bond proceeds in the park/pool improvement capital projects fund for work completed
on the Civic Center Park improvements and the new outdoor pool.
Ms. Holthaus reviewed the net positions of the enterprise funds (sewer utility fund,
water utility fund, golf course, ice arena, storm water, and street lighting). She stated
in total the net position of the enterprise funds increased by $2,291,461. Mr. McDonald
commented regarding the Water Utility Fund balance and that the city may want to
eliminate the emergency water supply system fee that was established in 2014 to pay
for an interfund loan for construction of the emergency water supply system.
Ms. Holthaus stated there were no deficiencies or findings, but the audit firm made the
following recommendations: 1) making available to council an itemized list of financial
transactions; 2) review of the federal procurement policy as it relates to micro‐purchase
threshold; and 3) review of federal grant procedures to comply with 2CFR §200.332.
Council thanked Ms. Holthaus for the presentation.
2020 GENERAL FUND
BALANCE AND
FUND TRANSFER
Item 11.2
Mayor Hemken introduced for discussion item 11.2, Discuss transfer of a portion of
the 2020 Audit General Fund Balance to Temporary Financing Fund.
Mr. Kirk McDonald, city manager, commented that the city received $1,641,664 of
CARES Act funding in 2020, and the funds were utilized for public safety personnel
costs. He stated the General Fund balance after the 2020 audit is $1,786,383, and the
majority is due to receiving Federal Coronavirus Relief Funds. AEM recommends
transferring excess funds of $1,641,664 from the General Fund to the Temporary
Financing Fund for future capital project needs.
Council supported the transfer and directed staff to prepare a resolution for
consideration at the council meeting of May 24, 2021.
PARK
INFRASTRUCTURE
FUND TO ICE ARENA
OPERATING FUND
TRANSFER
Item 11.3
Mayor Hemken introduced for discussion item 11.3, Discuss transfer from Park
Infrastructure Fund to Ice Arena Operating Fund.
Mr. Kirk McDonald, city manager, stated staff and AEM recommend a transfer of
$500,000 from the park infrastructure fund to the ice arena fund for ice debt service
and capital improvements. The long‐term financial plan that was reviewed with
Council in November 2020 included annual transfers to fund outstanding debt at the
facility. He noted beginning with the 2022 budget, a $100,000 increase in the park
infrastructure fund for ice arena debt services will not be necessary.
Council supported the transfer and directed staff to prepare a resolution for
consideration at the council meeting of May 24, 2021.
2021 CITY EVENTS
Item 11.4
Mayor Hemken introduced for discussion item 11.4, Discussion on potential 2021 city
events.
Mr. Kirk McDonald, city manager, inquired whether Council was interested in
scheduling a commissioner appreciation event on September 14 and holding City Day
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on October 9 to coincide with West Metro Fire‐Rescue District’s open house. He noted
due to construction activities and the pandemic, City Day has not been held the last
three years.
Council supported scheduling both events.
CLOSED MEETING
Item 11.5
Mayor Hemken introduced for discussion item 11.5, Resolution calling for a closed
meeting of the New Hope City Council authorized by Minn. Stat §13D.05, Subd. 3(d)
to discuss security issues at city hall/police station and the Aquatic Center.
RESOLUTION 2021‐62
Item 11.5
Council Member Elder introduced the following resolution and moved its adoption:
“RESOLUTION CALLING FOR A CLOSED MEETING OF THE NEW HOPE CITY
COUNCIL AUTHORIZED BY MINN. STAT §13D.05, SUBD. 3(D) TO DISCUSS
SECURITY REPORTS AND ISSUES.” The motion for the adoption of the foregoing
resolution was seconded by Council Member London, and upon vote being taken
thereon, the following voted in favor thereof: Hemken, Elder, Hoffe, Isenberg, London;
and the following voted against the same: None; Abstained: None; Absent: None;
whereupon the resolution was declared duly passed and adopted, signed by the mayor
which was attested to by the city clerk.
ADJOURNMENT The meeting was adjourned at 7:07 p.m. as there was no further business to come
before the Council at its work session.
Respectfully submitted,
Valerie Leone, City Clerk