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OPENPUBLICA · PUBLIC MEETING RECORD

Record of Proceedings

Mason City Council Regular Meeting - February 4, 2025

City Council — Tuesday, February 4, 2025

BodyMason City, Iowa

SessionCity Council

DateTuesday, February 4, 2025

StatusFILED

Video Record

0:00 / 26:15

Transcript — VerbatimClick a timed line to jump · ⧉ to share it

0:38

In order, this is the uh regular meeting in May City City Council on Tuesday, February 4th, 2025.

0:44

It is seven o'clock.

0:45

Uh first item of business will be the roll call.

0:49

Lee.

0:50

Present.

0:50

Adams.

0:51

Simmons, present.

0:52

Massan.

0:53

Here.

0:53

Yesky.

0:54

Here.

0:55

Latham.

0:56

I'm gonna go with present.

0:58

Mayor Shickle is absent.

1:01

Uh we'll adopt the agendas or a motion and second to adopt the agenda.

1:05

So move.

1:06

Second.

1:06

Motion by Yasheski, second by Masan discussion.

1:11

All those in favor signify by signify by saying aye.

1:14

Aye.

1:15

All those opposed, same sign.

1:17

The agenda is adopted.

1:19

Uh move into a special item of business.

1:22

Um presentation on the fiscal year 24 annual comprehensive financial report.

1:27

And deputy city administrators slash Finance Director Bryn Henson.

1:32

Mayor Council, uh, thanks for your attention tonight as we talk a little bit about our uh recently completed audit process.

1:40

Um we have Bonnie Schwager here from ABDO that's our uh outside auditor.

1:46

Um she was the lead uh for ABDO on this audit, and uh I'll just turn it over to her and she'll fill you in.

1:54

Wonderful, thank you so much, friend.

1:56

All right.

1:56

Um so my name is Bonnie.

1:58

I'm uh work with ABDO.

2:00

We've been working with the city for the past three years now, and I'm excited to go with you over with you the results of the fiscal year 24 audit, just to put this in a little bit of um reference point for you.

2:10

So we're talking about the fiscal year that ended June 30th of 2024.

2:14

So we'll be looking backwards a little bit and doing more of a historical review at those results.

2:20

I'm gonna talk about our audit results first, and then we'll go into some of the financial trends that the city has seen.

2:27

I'm gonna start on page six of the packet and um start with the information that we go through some of the technical requirements and then the general fund, and then we'll talk about some of the other governmental funds.

2:44

So starting with the technical requirements of the audit.

2:48

So we do issue three different opinion letters within your financial statements within your AC for the opinion letters are required by state statutes, and you're also required to have them uh completed for your federal single audit, which is uh requirement of your federal funding.

3:03

So the first opinion letter is our independent auditors report, and that really provides uh reasonable assurance that the financial statements are free of material misstatements.

3:12

And to put that in a a little bit of more understandable terms, it means that people can put trust in those financial statements.

3:18

That opinion letter allows your bondholders, your residents, and those looking at your financial records that they know that these were audited and that your numbers are clean at the year end.

3:29

We also issue a compliance letter with your state statutes, and we didn't find any issues there.

3:34

So there was a really clean year from uh state to compliance um aspect.

3:38

And then we also issue an opinion letter with your federal compliance and controls, and we didn't find any issues there.

3:44

So I was really happy with the results of this year's audit.

3:46

We were able to take out uh some of the odd the audit findings that have been present in years past and really issue clean opinion letters over all three of those areas.

3:56

All right, I'm gonna talk a little bit about the financial trends.

3:58

So starting on page eight of your packets, there's an overview of your general fund balances.

4:05

So your general fund is your operating fund of the city, and it helps you understand how healthy your reserves are.

4:11

And so you can see on page eight that your general fund of reserves ended about at about 50% of your operating cost.

4:18

And this was a little bit of a decrease from what you had last year, which was at 62% of your operating cost, but you had planned for that.

4:26

So you planned for a decrease in your reserves to use it for some one-time cost.

4:30

And you can see that on the next page when we look at the budget comparison.

4:35

So you had planned for an overall decrease of about six six million within your operating fund, and you had ended with about eight hundred thousand dollar decrease.

4:46

So considering what you had budgeted versus where you ended up, I'd say that that general fund balance is is very healthy and good going into the next year.

5:00

I'm gonna skip over to page 10 of our audit overview, and I just want to point out a couple of items for the general fund, some comparisons to the prior year.

5:06

We have a chart that illustrates the operating revenues and disbursements compared to where you were the last couple of years, and overall fairly comparable.

5:14

I want to point out that increase in intergovernmental in 2022.

5:19

That was due to some COVID funding, one-time funding that you didn't weren't gonna receive in the next years, and then that lines up really nicely with the other expenditures within 2022 on the expense side.

Discussion Breakdown — Share of Meeting

Fiscal Sustainability█████████████████████████████████████████████48%

Procedural█████████████████████████████31%

Zoning Regulations█████████10%

Water And Wastewater Management██████6%

Affordable Housing█████5%

Summary of Proceedings

Mason City Council Regular Meeting - February 4, 2025

The Mason City Council met on Tuesday, February 4, 2025, at 7:00 PM at the Mason City Public Library. The meeting included a presentation on the fiscal year 2024 Annual Comprehensive Financial Report (ACFR), approval of a consent agenda, a separate discussion on the East Park Redevelopment Project, and several public hearings and ordinance readings. All items on the agenda were approved.

Consent Calendar

The council approved the January 21, 2025 minutes; claims dated January 23 and 30, 2025; permits; appointments of John Robbins to the Zoning Board of Adjustment and Ray Stearns to the Housing Authority Board; the plan for audit accrual related transfers; a resolution authorizing notice to bidders for the East Park Redevelopment Project No. 24-1019 (pulled separately for discussion); a change order for the bike park and trails bid package 1; resolutions approving permanent placement of public art pieces Spiral Dance, Harmony In Light, and Resonance in downtown Mason City; and a purchase and sale agreement with Horizon Development for three parcels at the Northbridge site. All items were approved by a single motion, except item 7.

Public Comments & Testimony

No public comments were offered during the public forum. No written comments were received on any public hearing items.

Discussion Items

FY24 Annual Comprehensive Financial Report (ACFR) Presentation: Bonnie Schwager of ABDO presented the audit results for the fiscal year ended June 30, 2024. She reported clean opinion letters across all three required areas (financial statements, state compliance, federal compliance), with no audit findings. General fund reserves ended at 50% of operating costs, a planned decrease from 62% the prior year. The budget anticipated a $6 million reduction, but actual reserves decreased by only $800,000. Schwager highlighted strong cash balances in the water fund, while the sewer fund used cash for capital repairs. The ambulance, cemetery, storm sewer, solid waste, golf course, and parking lot funds showed tight margins or reliance on transfers. She noted debt service drop-offs in 2029–2031 as potential opportunities for future debt issuance. Councilmember Massel expressed appreciation for the trust provided by clean audits. Councilmember Simmons asked about prior reconciliation issues; Deputy City Administrator Brent Henson confirmed all reconciliation issues were resolved. Councilmember Lee asked about future challenges for municipalities; Schwager cited federal funding timing, state levy changes, and unpredictable capital costs as key headwinds.
Item 7 – East Park Redevelopment Project: The council discussed a resolution authorizing notice to bidders. Councilmember Simmons asked about the decision to demolish three houses instead of moving them. City staff explained that after inspections and evaluation of site conditions, it was determined only two houses could be saved: one moved and one remaining in place. The third lot may be incorporated into the development depending on rock elevation and site conditions. The resolution was approved unanimously.
Item 13 – Rezoning for Northbridge Site: On first reading, an ordinance to rezone the 500 block of North Delaware Avenue from Z3 General Urban to Z4 Multi-Use District was introduced. Councilmember Latham requested a summary; City Administrator explained the rezoning is needed to allow a four-story building on the former Northbridge site, as the Z3 district limits buildings to three stories. Aaron (likely staff) noted that one adjacent property owner objected at the Planning and Zoning Commission meeting, but the council proceeded with approval on first reading.

Key Outcomes

Consent Agenda (items 2-11): Approved with item 7 voted separately. Motion by Yasheski, second by Massan. Unanimous.
Item 7 – East Park Redevelopment Project Notice to Bidders: Resolution approved unanimously. Motion by Simmons, second by Latham.
Item 12 – Disposition of City-Owned Property (537 4th Street NE): Public hearing held; no comments. Resolution approving sale to North Iowa Corridor Housing Development Co. approved unanimously. Motion by Latham, second by Massan.
Item 13 – Rezoning from Z3 to Z4 (500 block N. Delaware Ave): First reading approved unanimously. Motion by Massan, second by Yasheski.
Item 14 – Rezoning from Z5 to Z3 (100 and 200 blocks of 2nd Street SE): First reading approved unanimously. Motion by Yasheski, second by Latham.
Item 15 – Rezoning from Z1 to Z4 (SE corner of 4th Street SW and Lark Avenue): First reading approved unanimously. Motion by Massan, second by Simmons.
Item 16 – Rezoning from Z6-R to Z4 (1300 12th Street NW): Final reading approved unanimously. Motion by Yasheski, second by Latham.
Item 17 – Amendment to Title 1, Chapter 5 (Corporate Limits): Final reading approved unanimously. Motion by Simmons, second by Massan.

Meeting Transcript

In order, this is the uh regular meeting in May City City Council on Tuesday, February 4th, 2025. It is seven o'clock. Uh first item of business will be the roll call. Lee. Present. Adams. Simmons, present. Massan. Here. Yesky. Here. Latham. I'm gonna go with present. Mayor Shickle is absent. Uh we'll adopt the agendas or a motion and second to adopt the agenda. So move. Second. Motion by Yasheski, second by Masan discussion. All those in favor signify by signify by saying aye. Aye. All those opposed, same sign. The agenda is adopted. Uh move into a special item of business. Um presentation on the fiscal year 24 annual comprehensive financial report. And deputy city administrators slash Finance Director Bryn Henson. Mayor Council, uh, thanks for your attention tonight as we talk a little bit about our uh recently completed audit process. Um we have Bonnie Schwager here from ABDO that's our uh outside auditor. Um she was the lead uh for ABDO on this audit, and uh I'll just turn it over to her and she'll fill you in. Wonderful, thank you so much, friend. All right. Um so my name is Bonnie. I'm uh work with ABDO. We've been working with the city for the past three years now, and I'm excited to go with you over with you the results of the fiscal year 24 audit, just to put this in a little bit of um reference point for you. So we're talking about the fiscal year that ended June 30th of 2024. So we'll be looking backwards a little bit and doing more of a historical review at those results. I'm gonna talk about our audit results first, and then we'll go into some of the financial trends that the city has seen. I'm gonna start on page six of the packet and um start with the information that we go through some of the technical requirements and then the general fund, and then we'll talk about some of the other governmental funds. So starting with the technical requirements of the audit. So we do issue three different opinion letters within your financial statements within your AC for the opinion letters are required by state statutes, and you're also required to have them uh completed for your federal single audit, which is uh requirement of your federal funding. So the first opinion letter is our independent auditors report, and that really provides uh reasonable assurance that the financial statements are free of material misstatements. And to put that in a a little bit of more understandable terms, it means that people can put trust in those financial statements. That opinion letter allows your bondholders, your residents, and those looking at your financial records that they know that these were audited and that your numbers are clean at the year end. We also issue a compliance letter with your state statutes, and we didn't find any issues there. So there was a really clean year from uh state to compliance um aspect. And then we also issue an opinion letter with your federal compliance and controls, and we didn't find any issues there. So I was really happy with the results of this year's audit. We were able to take out uh some of the odd the audit findings that have been present in years past and really issue clean opinion letters over all three of those areas. All right, I'm gonna talk a little bit about the financial trends. So starting on page eight of your packets, there's an overview of your general fund balances. So your general fund is your operating fund of the city, and it helps you understand how healthy your reserves are.

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