Based on the context provided and the dialogue within the transcript, here is the formatted transcript with speaker names. Note: Some names mentioned in the transcript (specifically "Neil," "Lindell," and "Derek") do not appear on your provided list. Based on the context of the meeting, **Neil** appears to be the City Administrator (or a senior staff member), while **Lindell** and **Derek** are acting as Council Members. *** **[0:57] Mayor Matt Montgomery:** thank you **[1:50] Mayor Matt Montgomery:** morning. Kronenberger here, Lindell here, Montgomery here. Please rise for the Pledge of Allegiance. I pledge allegiance to the flag of the United States of America and to the Republic for which it stands, one nation under God, indivisible with liberty and justice for all. If I could get an approval of tonight's agenda? I have a motion by Lindell. Do I have a second? **[2:20] Ryan Jeppesen:** Second. **[2:21] Mayor Matt Montgomery:** Second from Jeppesen. All those in favor? Opposed? Carries. Public input. Public input is intended to afford the public an opportunity to address concerns to the city council. The public input will be no longer than 30 minutes in total length. Each speaker will have no more than three minutes to speak. Speakers may address topics relevant to the governance of the city. Speakers must sign up in advance, must provide their name, address, and the topic they intend to address. Comments must be on topic, respectful, pertinent to City business, and adhere to the applicable data privacy rules. Any speaker that violates these rules will be asked to sit down and if the speaker refuses to comply they may be removed from the meeting. Speakers shall not address topics that are the subject of a public hearing; all such comments shall be made at the public hearing. The city council will not generally act on issues raised by the public input but may choose to schedule consideration of the item on a future agenda. Mr. O'Gorman? **[3:24] Mr. O'Gorman:** Good evening. A couple weeks ago I asked about Project Tulip and I couldn't find anybody that knew anything about it and I don't know if anybody does yet. I'm wondering what it is. There's been an expense of like fifty-six hundred and fifty dollars to the city engineer. There's even been cookies billed out to the project and I don't know of any council members that know what it is, but you're approving expenditures for it. So I'm curious to find out just what is Project Tulip? And I certainly don't want to have to go put in a data request to find out what it is because it seems as though it's getting awfully hard to find out the simplest of public information. Thank you. **[4:12] Mayor Matt Montgomery:** Thank you. Moving on, presentation tonight: we've got our 2022 audit presentation from ABDO Solutions. And Brad, I don't want to butcher your last name, thank you for coming. **[4:25] Brad (ABDO Solutions):** Thanks for having me. So, you should have in your packet the financial statements, the presentation, and the executive government summary. I'll go through the presentation, which is this document. It's just a summary of what's in the financial statements themselves. So, if you have any questions, we certainly can open the financial statements to look at those; otherwise, hopefully everything is addressed with this. And you all have this in front of you? Okay, good. All right, so the first page just kind of outlines what we're going to talk about and that is our Auditor's opinion and responsibilities. We'll go through the general fund results, other governmental fund results, Enterprise fund results, and then key performance indicators where we compare your city by size to other cities within the county as well as throughout the state of Minnesota. Next slide: Auditor's opinion. We are issuing an unmodified or a clean opinion on your financial statements, which is the opinion you're looking for. That’s saying that we believe everything in the financial statements is materially accurate and reported in accordance with generally accepted accounting principles. The state of Minnesota state auditor's office requires us to also go through a series of checklists related to different compliance State statutes. We are not reporting any non-compliance with the statutes that we tested this year, so that's a clean report with that as well. Next slide: we just have one finding the report and this is the common finding we've been reporting it for many years just given the size of your city—it's the preparation of the financial statements. We do prepare the financial statements as part of our audit process. It is Management's responsibility to prepare them and our responsibility to audit them. Since we are doing both, it's not an uncommon finding, but it's just here to really show that it's your responsibility. Then we'll get into the results. First, the general fund. This first chart here shows the fund balance. You have been consistently above your policy at 76 percent ending this last year. Then on the next slide, we have the general fund budget to actual statement. Your actual revenues came in about $210,000 over what you'd budgeted; your expenditures came in about $118,000 over what you budgeted. A lot of that dealt with a hailstorm that occurred last year; there's a lot of license and permits and then on the flip side with the expenses, there's a higher inspection fee to go and inspect those. General fund revenues by type: you can see pretty consistent from year to year. Taxes have steadily increased. Intergovernmental revenues over the last two years have steadily declined. You did get some COVID money back in 2020 that kind of fell off. **[8:40] Council Member:** I feel like we asked this question before... what qualifies as "other"? **[8:44] Brad (ABDO Solutions):** That’s going to be any transfers in, miscellaneous revenue, contributions, donations, those types of things. Interest revenues are in there. Just a lot of things that just kind of aren't significant. On the next slide is your expenditure by department. General government, public safety, public works, culture and rec—most departments have stayed pretty consistent. The main thing that's in "other" is your transfers out; you transfer about $800,000 out of the general fund. Public Safety increased somewhat this year, again related to inspections. Next slide: your special revenue funds. You have three: the library, cable television, and fire department operations. We're just ensuring that your revenues are meeting your expenditures in these categories. Debt service funds on the next slide: you have about 4.1 million dollars of bonds outstanding. Capital project funds on slide 11: a lot of these funds are just monies that you're setting aside for future capital purchases. You did close the Third Street Bridge fund this past year; there was a $102,000 deficit in that fund and you transferred money into that fund to close it. Enterprise funds: water, disposal, and ambulance. 2019 was pretty much a break-even year, but after that, your receipts have been meeting your disbursements and debt. Disposal fund: same thing, receipts have been meeting your debt. Ambulance fund: cash balance over the last two years has been pretty consistent at around $400,000. Stormwater fund: receipts have been meeting disbursements. Recycling fund: receipts have been meeting disbursements and you have a $219,000 reserve. Total cash in the city: about $12.4 million over the last couple years. Finally, key performance indicators. On the tax rate, you're slightly higher than class four cities across the state but slightly lower than other cities in the county. On the next slide: total debt per capita has come down as you're paying your bonds down. Current expenditures: you're right in line with other cities in both peer groups. Other than that, I'll take any questions. **[17:21] Mayor Matt Montgomery:** Any questions from the Council? Are you going to go over that like 147-page report? **[17:27] Brad (ABDO Solutions):** Would you like me to? **[17:28] Mayor Matt Montgomery:** No, no. **[17:30] Diane Johnson:** Page 60, okay? The very top of the page. I think it's with the Magnolia loan. It looks like it says the loan was taken out in 2026 and is due in 2021. **[17:42] Brad (ABDO Solutions):** Yep, that's not right. We can get that corrected. **[17:45] Diane Johnson:** I just read it twice, unless that's a typo. That's all I had. **[17:51] Brad (ABDO Solutions):** I like to see the red, though. That’s nice. Good job. **[17:55] Mayor Matt Montgomery:** Any other questions? Hearing none. Anything for the executive governance or the annual financial report? **[18:05] Brad (ABDO Solutions):** Nope, there's nothing more in there that I haven't already talked about. **[18:11] Mayor Matt Montgomery:** Wonderful. Thank you, Brad. Appreciate it. We need a motion to approve the audit that we just received. **[18:18] Chad Johnson:** So moved. **[18:20] Mayor Matt Montgomery:** Motion by Johnson. Second? **[18:22] Lisa Zimmerman:** Second. **[18:23] Mayor Matt Montgomery:** Second from Lisa. Any further discussion? Those in favor? Opposed? Carries. Thank you. That gets us to the public hearing: Resolution 2684 approving the administrative subdivision of parcel number 52.500.0030. Neil, if you'd like to explain this one? **[18:56] Neil (Staff):** Yeah, remember a while back we approved a purchase agreement for a lot split of Malloy's. This is just fulfilling that. We're going to be closing on that, I believe, Friday. We're closing on that little sliver of land for the Third Street project. We've been through this before. **[19:38] Mayor Matt Montgomery:** Any questions or discussion from the Council? Hearing none, I would accept a motion to approve. Technically the public hearing is open if anybody would like to speak. Going once, twice, third and final call for speaking during the public hearing of resolution 2684. Seeing none, we will close the public hearing and I would accept a motion to approve resolution 2684. **[20:17] Council Member Lindell:** So moved. **[20:18] Mayor Matt Montgomery:** Motion from Lindell. Do I have a second? **[20:20] Ryan Jeppesen:** I'll second it. **[20:21] Mayor Matt Montgomery:** Second from Jeppesen. Any further discussion? All those in favor? Aye. Opposed? Carries. That gets us to the consent agenda. Consent agenda items may be adopted under one motion as presented or may be removed for discussion. Item A: Just and correct claims. Item B: Meeting minutes for June 6th. Item C: Verizon Fourth Amendment to Communications site lease agreement. Item D: Resolution 2685. Item E: Approve Christy Buck to practice massage. Item F: Resolution 2686 authorizing fund closures. Any that the council would like to have pulled down? **[21:14] Diane Johnson:** Item A. **[21:16] Mayor Matt Montgomery:** Item A. Okay, any others? Hearing none, I would accept a motion to approve. **[21:23] Diane Johnson:** So moved. **[21:24] Mayor Matt Montgomery:** Motion from Diane. Do I have a second? **[21:26] Ryan Jeppesen:** I'll second it. **[21:27] Mayor Matt Montgomery:** Second from Mr. Jeppesen. All those in favor? Opposed? Carries. That gets us to Council Business Item A: Just and correct claims. Diane? **[21:39] Diane Johnson:** Yeah, in reviewing our payments to our annual funding agreements, it looks like we're on track with everybody. Cannon Valley Senior Center, Historical Society, and Chamber each received $5,000. However, the Cannon Valley Fair—we never fulfilled our $5,000 agreement last year with them and we haven't yet paid it this year. So I wondered when we were going to be authorizing those payments? **[22:20] Mayor Matt Montgomery:** I think those funds are currently being held because of the land dispute. The legal fees—we need to revisit. The city said that we would take the legal cost, but that was under the assumption that it was just some paperwork. The cost was much higher than that. That was at a meeting in the fall back when Mayor Altaf was still Mayor. Those funds have not been given because those legal fees were higher than expected. **[23:25] Diane Johnson:** What was the difference between the anticipated legal fees which we were going to cover and the actual legal fees? **[23:31] Mayor Matt Montgomery:** Great question. I probably shouldn't spitball, I'll pass that over to Neil. **[23:35] Neil (Staff):** About 12 to 15,000. **[23:38] Diane Johnson:** Okay. **[23:39] Mayor Matt Montgomery:** Any other questions? **[23:40] Diane Johnson:** Nope, that was it. **[23:41] Mayor Matt Montgomery:** Then I would take a motion to approve Item A. **[23:45] Council Member Lindell:** So moved. **[23:46] Mayor Matt Montgomery:** Motion from Lindell. Do I have a second? **[23:48] Lisa Zimmerman:** Second. **[23:49] Mayor Matt Montgomery:** Second from Lisa. Any other discussion? All those in favor? Aye. Opposed? Carries. That gets us to the reports. Maggie is not here from the chamber. Finance committee—Derek, would you like to, or can pass that off to Neil? **[24:19] Council Member Derek:** Pass that off. **[24:20] Neil (Staff):** I have it here. We did some discussion about the water tower, Verizon, the land that Riverside Terrace owns, and the John Birch Park project. That was it. **[24:41] Mayor Matt Montgomery:** All right. Anybody from the library board want to share? **[24:45] Council Member:** Sure. We went over the preliminary budget, got that approved. They're looking for a home delivery volunteer and we have a potential new community member for the board. **[25:01] Mayor Matt Montgomery:** Great. We'll go around the horn here. Sarah, is there anything you'd like to add? Laura? Zach, first meeting—anything? All right, well welcome. Chief? **[25:12] Jeff McCormick (Police Chief):** Just want to remind our residents that during the parade, we will be shutting down different parts of the parade route. The east side will shut down first, then the west side. Please plan to come a little bit early, especially if you have somebody with mobility issues. We just don't want cars and parade units in the same space. **[25:54] Mayor Matt Montgomery:** Thank you. Neil? **[25:55] Neil (Staff):** I want to officially introduce Zach Logelin as our new license and permit tech. His first day on the job was today, so we look forward to working with him. **[26:07] Mayor Matt Montgomery:** Great. Council members? Laura, anything from you? **[26:12] Laura Kronenberger:** Nothing. **[26:13] Mayor Matt Montgomery:** Lisa? **[26:14] Lisa Zimmerman:** Nothing. **[26:15] Ryan Jeppesen:** Congratulations to the Bomber baseball team. Fourth place—not bad. **[26:22] Mayor Matt Montgomery:** Not bad. Derek? Diane? **[26:25] Diane Johnson:** Well, I'll ask a question that's been asked the last couple meets: what is Project Tulip? It's on our finance reports. **[26:34] Mayor Matt Montgomery:** We'll talk after we adjourn. Okay. Just wanted to wish everybody a wonderful Father's Day. Again, Bombers fourth place—it was a lot of fun. Like I said last meeting, have a happy Fourth, enjoy the fair, enjoy the parade, and I'll see you guys on the 11th. I'll accept a motion to adjourn. **[27:14] Diane Johnson:** Motion. **[27:15] Council Member Derek:** Second. **[27:16] Mayor Matt Montgomery:** All those in favor? We are adjourned. Thank you.