you good evening ladies and gentlemen it is now 5:30 and I will call this regular meeting of the Burnsville City Council to order the clerk would note that for the record that all council members are present and it is our tradition to begin our meetings with a moment of silence followed by the Pledge of Allegiance and we invite you to join us 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 so to our citizens who are watching us we are still being very creative and how we slowly come back in under this environment of the global pandemic kovat 19th october 19 so tonight's meeting is being conducted in person all of our City Council members and our staff are here inside City Hall in the council chambers and we are practicing social distancing if you can see we are all physically separated from one another and so members of the public may attend in person if they like members of the public may also watch this meeting online at Burnsville MN gob slash meetings or Comcast channel 16 or a 59 if you would like to participate during the meeting remotely you may call six five one three seven two eight two nine nine or join the meeting online at zoom dot us slash joy and more information is available on our meeting web page and in the council agenda packets so we now will move on to the next item on our agenda and that is announcements about our upcoming meetings so regular council meetings are scheduled for Tuesday July 7th at 5:30 p.m. and Tuesday July 21st at 5:30 p.m. we have a work session that's scheduled for Tuesday July 14th at 5:30 p.m. in July we will have in-person public meetings at City Hall with an option to participate online please check the meeting agenda or call City Hall you have any questions about how to participate in an upcoming meeting and now we will move on to citizens comments this is the opportunity for anyone in the audience who wishes to address the council on an item that is not in a printed agenda and not an application form that will be coming before us at a future date is there anyone who wishes to address the council I do not see any members of the public present so and I don't have anything that tells me that there is anyone in queue who wishes to address the council okay we now move on to additions to the final agenda and this is for emergency items only miss Moscone are there any emergency items to be added to the agenda there are not Matt America Thank You members of the council do you have any emergency items okay there is none we move on to the consent agenda the consent agenda is a group of items that's considered to be routine and will be enacted by one motion however an item and a consent agenda can be removed for a separate discussion in vote miss McCauley the staff weren't an item to be removed from the consent agenda we do not matter mayor members of the council okay may I have a motion to adopt the consent agenda please google proof council member Gustafson makes the motion and second comes from workman seconds the motion all in favor please say aye aye aye opposed say nay and the motion carries we are now on the regular agenda and the first item on the regular agenda is the audit report from our independent auditor our independent auditor is Jim Acton and Jackie ego Hugo ego okay from and I always do this mr. Acton because I want to make sure I continue to pronounce all of your partner's names so it's the firm of Malloy Montague perranoski and rather savage did they get it do it once a year MMK alright so thank you and so our auditor is here to present the audit to the to the council and to the people of Burnsville mr. Eichten yeah thank you for the introduction as mentioned my name is Jim miked and I'm here to see me to provide a audit report for the year end of December 31st 2019 thanks for having me Jackie's here as well jack is one of our partners and has worked on the audit very diligently this year in partnership with me as well as partner shift with the staff in terms of getting the the audit report completed I'm gonna start my comments this evening really just frame working the purpose for me being here but mostly just giving the sense to the council that the results are very good this evening probably the highlight of the the audit is that that we're here in mid-june which is very timely for the Saadat is the typical time that we do this on a presentation but it isn't it it was performed in an environment that was not typical we did complete this particular audit in the middle of a pandemic it started probably in January February timeframe and most of the hard work was done remotely through all of our staff work and your staff in terms of putting this together to get here today at a normal time to present this audit is a credit to certainly the city of Burnsville staff and I just wanted to framework that before I get started with my actual presentation so you'll see I did provide a PowerPoint tonight and really the PowerPoint starts with the role of the auditor and the purpose for me being here it is a requirement in state law city have a annual financial statement prepared that financial statement is required to be submitted to the office of the state auditor of the state of Minnesota and it is hard to be audited by an independent certified public accountant which is our role with the city we're provided in that process with the goal of providing opinions on that financial statements the city does take it above about beyond the standard financial statement and do prepare what's called a comprehensive annual financial report that comprehensive annual financial report is submitted to the CFO a four certificate of achievement I would say he's received that certificate for I forget the number it's probably higher than one lower than forty what was it Brody is twenty years that we received consecutive awards from GF OE yes so it's been a long time than the city should be commended for that as part of the audit process we do also then test your city's internal controls and your compliance with the various laws and regulations that relate to financial reporting we also then test your compliance with Minnesota specific laws and regulations we test laws that are provided by the office of the state auditor we don't test every law only law those that are provided on that list to us and then lastly we're required to complete what's called the single audit of federal awards if you were to receive more than $750,000 of federal awards that was not required in fiscal 2019 it has been required in the past and and given the nature of some of the future funding that you're gonna be receiving I would anticipate you'll have a single audit again here in the near future my PowerPoint then goes over starts to go over what's called the management report and in our management report the document is a document that we write to formalize the audit process and provide information to the council such that you could review the financial the management report and understand how the audit went by reading that document so as I mentioned the audit results are very good this year you did receive unmodified opinion on the financial statements it is what would what I would describe as a clean opinion it was the opinion you were looking for going into the audit process and we did not have any findings to report in either the internal control documents that you have as well as the Minnesota legal compliance audit that we're not any findings to report there as well so certainly the results you were looking for as well as a clean audit opinion is certainly a very positive results this year so in my management report we do also provide some information on scope of the audit really the timing of the audit I did reference that it also provides some information on required communications you will note some discussion within that document of the impact of Copan 19 on the audit report there is some required elements of disclosure that were provided including really just allowing the reader to be aware that yes some of the conditions economically have changed since this audit report was written this is a document that is dated December 31st things economically have changed dramatically since that time and thus the report reflects that there is an opportunity within the financial report to provide a discussion on the impact to actual fiscal 2020 I know that's actually an agenda item this evening they will be talking about but just so that the document does provide information to that then the second part of the audit of any audit really is the financial results and in this management report we do go through those financial results really starting with some trend lines and on market values market values tend to drive property tax revenues you can see the property values of the city have been increasing in 2019 taxes payable 19 will increase about 6% 6.2 percent the presentation you see on the PowerPoint there is very similar to what other Twin City metropolitan area cities are experienced in terms of market value certainly declines went down after 2008 and certainly have increased since that time we do provide information in our in our document on the property tax rates and the trends on property tax rates what's you're seeing there is the city's average tax rate is is for 2019 was almost exactly or is exactly the same as the previous year overall the overall city tax rate did decline mostly because of the school district had it had a lower than average tax rate well that means in terms of financial results really is reflected in this graph you'll see in this graph we provide information on the city's revenues on a per capita basis certainly with the positive trends and market value and in really consistent tax rates you're seeing that property tax revenues are increasing as well as a increase in Kannamma nation with increase in the text levy the city's property tax revenues per capita did increase slightly what's notable there is really in total of the average of the property tax revenues per excuse me the total revenues per capita are actually very consistent with other cities within the state you can see in two thousand eighteen thousand eight dollars per resident was generated where Burnsville is that one thousand four so very consistent in terms of revenues per capita you also see that when you look at my presentation the expenditure area expenditures per capita in total or nine hundred and fifty three dollars per resident when in total it's about a thousand eighty one so actually you're you're lower than the average city some of the categories there are provided that current costs are actually lower than comparable one area that the city does a typically trend higher is in the area of Public Safety the city has a full-time fire department what's tends to drive higher than average costs in that particular category we always look in terms of auditors as at the debt service line the debt service line you'll see is $80 per resident when on average the city your size has about a hundred and thirty eight dollars per resident what that says to an auditor is good fiscal management good fiscal management in terms of yeah debt and loans we always have to watch that debt service when we're looking at the rating agencies it's very important to that yeah that number stands out we then get into individual fund data here we're just going to give some highlights on some of the highlights of individual funds you can see the general fund financial position did improve in 2019 the fund balance end of the year roughly sixty-one percent of operations of expenditures the city does have a fund balance policy that states to maintain a goal of a minimum of thirty five percent of fund balance and obviously you're above that goal there's really two reasons that you have such a fund balance goal of one of which is you need it for adequate cash flow the second one really is to help with the impact of uncertainties and you took the words right out of my mouth having a fund balance that's consistent and you can see on this graph and this graph could probably go back ten years prior to this the stability of the general fund really allows for the city to work through some of the uncertainties you work with her right now and certainly this particular presentation does reflect very solid financial position the general fund of the city a couple other graphs and the general fund we do provide revenues here we're showing revenues on a per source basis the revenues and expenditures in the general fund do continue to be close to what the city does budget as auditors we look at those particular variables to verify your expectations in terms of budget we're matching final results in the in the revenue area certainly that did occur city did experience a revenues in excess of budget mostly in the area of building activity building activity was a positive for the city in 2019 on the expenditure side the expenditures of the city did come in less than budget you you would hope for that as a city mostly in the area of Public Safety and in really general government which was spread across a variety of categories the graph you see in front of you does reflect on some of the trends over the last five years in the area of expenditures within your general fund you can see this particular graph does reflect of the city's commitment towards public safety the category that's been growing mostly over the five years and is in the area of Public Safety Public Safety does include fire so it is not just police I do want to comment that I I think I've done this presentation now several times this year and that particular trend line is experienced within most of our metropolitan cities I don't reflect on that as a political statement at all it's mostly just a factional statement that is a data point that you'll see within our state is is the increasing costs or the cost spending in the public safety area well the city does have some very substantial enterprise funds enterprise funds our typical business activities the waters who are fun which is about a 17 million dollar operation does have very consistent results you can see the purple line there shows operating income which excludes depreciation which is the most important line on that particular graph you can see if slight downturn in 2018 mostly related to repairs and maintenance expense I'm not really concerning on my end but something to be to be aware of some smaller enterprise funds which includes the stormwater fund really had very consistent results very positive results which is reflected on the Purple Line the Ames Center fund is a fund that city does continue to monitor very closely you can see in that particular presentation I focus on the tread line of the Purple Line and specifically that that it's increasing you can see that even in the numbers you can detail into the numbers and you can see the overall financial results of that particular fund have improved in every year listed each and every year for the last five years which is a very much a positive sign for the Ames Center I'm gonna skip over the ice center and really get to the last thing I'm gonna really want to cover in my management report as I mentioned we do provide the information a legislative information the city also is provided in the document with some in accounting and auditing updates the governmental Accounting Standards Board continues to issue continues to issue more and more standards and this year was no different there was a number of standards that were implemented fortunately the governmental Accounting Standards Board did as a favor recently by deferring all of the Accounting Standards due to covert 19 they took basically every standard that they issued in the last or those that hadn't been implemented and allowed for a year deferral so that's certainly gonna help accountants and staff members here who are dealing with a lot going on with this and allowing for some deferral of some of the new standards that they have so in summary I did issue a clean opinion on the financial statements I did not have any findings to report I mentioned the certificate of achievement in financial reporting I do did reflect on the city's solid financial condition and lastly I just had two other comments to make one of the comments that we talked about in any really audit when we lead into it is the sense of the importance of the ongoing assessment of results and the ongoing assessment of operations and we went into this audit one of the things that you will note right away is there's a different person sitting over in this chair and that can mean a lot to an auditor and it can mean a lot of typically I'll just reflect it can mean a lot of challenges for auditors immediately the red flag typically goes up when we dive into audits where there's new staff and new city new finance individuals we didn't run that any challenges this year with the audit at all it felt like it was any typical year for us of a pandemic took place but typically things that we would look for and challenge ourselves with with this audit giving changeover and turnover and personnel did not occur whatsoever and and that's a credit to everybody here including the council but mostly to her and her staff so with that very positive results and very positive trends at the city this year so I'll turn it over to you for any questions any questions for mr. Acton mr. Acton our sincere appreciation for the work that you and masago has done for us and I'm happy to hear that it was seamless and of course miss rody is not new to either one of you she's helped on all of the past audits as well it's good to know that you can report to our citizens that there is a clean opinion and that you had no findings and that's always good and that we are in a strong financial position and we hold our triple-a bond rating and when I read through everything and saw that in terms of our market value and everything that we have in Burnsville we can't do much about our per capita income but there are some things that we can do but having a five-year budget plan and a five-year capital improvement plan these are all very important items to a rating agency and to all of you who look at us and say do they have good policies in place and good management structures in place and we do and it's good for our citizens to hear that from someone objective someone outside of government that we hire to do this work so thank you so much for all of that and for reporting to our citizens our strong financial position so with that members of the council I need a motion to adopt the audit motion to adopt the audit councilmember Schultz makes the motion second all in favor please say aye aye opposed say nay and the motion carries thank you so much you yes have a good evening I will stay healthy safe and well thank you the next item is the our city manager's update to us on the koban 19 response update thank you madam mayor and council I'm gonna provide a brief update on where we're at on the legislative side of the world and then we're gonna turn it over to mr. rody for a financial update and then mr. Lindberg for our recovery update we are in special session this week and the Senate and the house are both hearing bills related to the distribution of the cares Act so earlier today the Senate adopted a bill that would allocate approximately 4.7 million dollars of Kerr's funding to the city of Burnsville the houses yet to act on their proposal but we are tracking those very closely once we get the final distribution we will continue to work on the definition and the eligible expenses again these funds cannot be used for lost revenues but we will be watching and allocating as many dollars as we can to those eligible funds so with that we're in a bit of a waiting game for this for the legislature this week we understand they intend to adjourn by Friday so we will continue to keep the council updated on what we learn on the financial side of that once the House votes they want to quickly distribute the money indeed yes indeed yes it's it's eligible expenses we're we're down a portion of yeah we're diving into a lot of that trying to understand what's eligible so with that I would like to turn over to miss rody to talk a little bit more about the financial position related to Cove in 19th yeah hi welcome evening I'm madam mayor council members I just have a quick update on a couple of financial items you know as as we kind of go along we keep monitoring monitoring everything and update as necessary just to quick update on property taxes we have received the city did receive at the end of May the first settlement of current property taxes about 17 million so that was the first event and the county has told us in their reports that they've collected about 97% of those current collections so I think that's that's good news we still expect to receive as the date you know the deadline is July 15th for current payment of the first half so we still do expect to receive payments before then and they will settle the the entire amount by the end of July we'll have gotten all all of our first half collections they're doing it in three or four different settlements throughout the next month or so so so I think that's you know good news for now and we'll keep monitoring you know that percentage of collections I think the second half you know we'll have to seat you or that where that goes once we get to December and have those collections but we'll we'll keep reporting on that as far as permit revenues through the end of May so far May was a good month and so we are on track now to reach budget we haven't seen a slowdown we haven't seen a slowdown yet so I think that's good news and we keep monitoring that each month so yeah those are those are kind of the highlights of what I have and as we talked about just a minute ago we're still waiting on the Karis funding so we'll see we'll see what that brings any questions for Miss Rhodey miss Muskogee thank you so much miss rody thank you very much for the update and seems like you know even with koban 19 we haven't missed a beat so thank you to our wonderful staff please extend our appreciation to everyone miss McCauley for the great work we've been through a pandemic any economic recession that we're in staff has done a wonderful job and now we're in also with the racial injustice crisis so we'll continue to move through all of that madam mayor if you would wouldn't mind I'd like mr. Lindberg to provide a brief update about our recovery as we move into reopening city facilities excellent mr. Lindberg thank you madam mayor members the council I'll keep it brief as you have heard from us in the past we are implementing our step two of a three-step plan step two has been defined by re-entry really learning from our experience through the recovery efforts that we that we've undergone to this point in time and our response to Cove in 19 as well as opening city facilities back up based on community need so we have communicated the staff that we plan to fully implement staff step two by July 1st it coincides with the temporary closures expiring of City Hall as an example on June 30th so we're actively preparing for that step two is really defined by looking at what it is that the organization and more importantly the community needs in and then looking to open facilities return some city staff back to back to work from remote work assignments at the same time we're interacting with staff and we'll be seeking their input as we as we review step 2 and plan for step 3 we're step 2 has been focused on re-entry we really defined step 3 about reimagining how we provide service we've learned a lot and we intend to use what we've learned to continue to provide the best possible experience to the community so as we do that we're interacting list what went well what didn't in our step to implementation and then that will poison or put us in a good position to do some departmental planning around step three implementation I expect that that will be happening through July and we'll continue to provide you updates on how that goes we're also looking at our remote work policy and working very closely with a group of staff who have committed to providing us with some feedback as well as our recovery team to start talking from a leadership perspective and an employee perspective about how we continue to reimagine how remote work might look as we continue to navigate through our recovery I'll close with this our organizational values and the expectations and priorities that you set for us in in early April really have been a strong guiding force for us in this work and I think it's led to really good outcomes in some great feedback internally and I hope that that translates into great experiences for our community our residents our business owners and everyone who interacts here in Burnsville okay anything else no madam mayor thank you thank you okay and that is the end of our regular agenda and a motion to adjourn is an order motion to adjourn second make so option ii might kind of some member Keely all in favor please say aye aye opposed say nay and emotion carries good night and thank you for being with us [Applause] you