06 13 22 City Council MinutesNew Hope City Council June 13, 2022
Page 1
City of New Hope
4401 Xylon Avenue North
New Hope, Minnesota 55428
City Council Minutes June 13, 2022
Regular Meeting City Hall, 7:00 p.m.
CALL TO ORDER The New Hope City Council met in regular session pursuant to due call and notice
thereof; Mayor Hemken called the meeting to order at 7:00 p.m.
PLEDGE OF
ALLEGIANCE
The City Council and all present stood for the Pledge of Allegiance.
ROLL CALL Council present:
Staff present:
Kathi Hemken, Mayor
John Elder, Council Member
Andy Hoffe, Council Member
Michael Isenberg, Council Member
Jonathan London, Council Member
Tim Hoyt, Acting City Manager
Valerie Leone, City Clerk
Stacy Woods, City Attorney
APPROVAL OF
MINUTES
Motion was made by Council Member Hoffe, seconded by Council Member Elder,
to approve the work session meeting minutes of May 16, 2022, executive session
meeting minutes of May 16, 2022, and the regular meeting minutes of May 23,
2022. All present voted in favor. Motion carried.
OPEN FORUM
There was no one present desirous of addressing the council.
PRESENTATION:
2021 ANNUAL
FINANCIAL REPORT
Item 5.1
Mayor Hemken introduced for discussion Item 5.1, Motion to accept the 2021
annual comprehensive financial report (ACFR).
Mr. Tim Hoyt, acting city manager, stated the report was reviewed with Council
at the May 16 work session by staff from Abdo Financial Solutions. He introduced
Bill Lauer of the audit firm Malloy, Montague, Karnowski, Radosevich & Co.
(MMKR) to summarize the audit. He recommended that the Council accept the
2021 audit to enable the city to submit the audit to the state auditor in a timely
manner.
Mr. Bill Lauer summarized the 2021 audit. He reviewed the auditor’s role and
stated the city received a “clean opinion,” which is the highest reporting available.
He stated the city’s records were found to be in good condition. He stated there
were no findings this year for internal control and compliance report. He indicated
a federal single audit was required for 2021 as the city received greater than
$750,000 in federal funds.
Mr. Lauer stated the city’s total net position was $96,073,515 (an increase of
$11,034,386 from the prior year). The governmental fund balance as of December
New Hope City Council June 13, 2022
Page 2
31, 2021, was $30,054,786, an increase of $2,599,535 from the prior year. He stated
at the end of the fiscal year, the unassigned fund balance for the General Fund was
$8,624,063 or 51 percent of total General Fund 2021 expenditures and transfers out.
He stated the city’s total bonded debt decreased by $4,925,562 (9.1 percent) from
the previous year.
Mr. Lauer reviewed the enterprise funds financial position (sewer utility, water
utility, golf utility, golf course, ice arena, storm water and street lighting). He stated
in total the net position of the city’s enterprise funds was $29,560,306 (an increase
of $3,080,923).
Council Member London inquired regarding the assumptions for the employee
retirement funds. Mr. Lauer noted the city pays a percentage of salaries into the
plan. He stated the state of Minnesota has mechanisms in place for any
underfunded scenarios.
Mr. Lauer reviewed Item 6.4. He noted every year the city applies for the
Certificate of Achievement for Excellence in Financial Reporting through the
Government Finance Officers Association (GFOA). He noted the city recently
received the award for the fiscal year ending 2020. He explained the GFOA called
out a $3,000 discrepancy in the 2020 financial report. Mr. Lauer assured Council
the issue was relatively minor and was due to missing link in a formula which has
since been corrected.
Council thanked Mr. Lauer for his presentation.
MOTION
Item 5.1
Motion was made by Elder, seconded by Council Member Isenberg, to accept the
2021 annual financial report. Voted in favor thereof: Hemken, Elder, Hoffe,
Isenberg, London; and the following voted against the same: None; Abstained:
None; Absent: None. Motion carried.
ROTATING VOTES
Please note that votes taken on each agenda item are called by the secretary on a
rotating basis; however, the written minutes always list the mayor’s name first
followed by the council members’ in alphabetical order.
CONSENT AGENDA Mayor Hemken introduced the consent items as listed for consideration and stated
that all items will be enacted by one motion unless requested that an item be
removed for discussion. Mr. Kirk McDonald, city manager, reviewed the consent
items.
BUSINESS LICENSES
Item 6.1
Approval of business licenses.
FINANCIAL CLAIMS
Item 6.2
Approval of financial claims through June 13, 2022.
MOTION
Item 6.4
Motion accepting certificate of achievement for excellence in financial reporting.
MOTION Motion to accept a $50 donation for recreation scholarships.
New Hope City Council June 13, 2022
Page 3
Item 6.5
MOTION
Consent Items
Motion was made by Council Member Elder, seconded by Council Member
Isenberg, to approve the Consent items. All present voted in favor. Motion
carried.
EXCHANGE OF
COMMUNICATION
Item 12.1
Mayor Hemken introduced for discussion Item 12.1, Exchange of communication
between members of the City Council.
Mayor Hemken reported on upcoming events.
ADJOURNMENT
Motion was made by Council Member Isenberg, seconded by Council Member
London, to adjourn the meeting, as there was no further business to come before
the Council. All present voted in favor. Motion carried. The New Hope City
Council adjourned at 7:35 p.m.
Respectfully submitted,
Valerie Leone, City Clerk