This meeting on July 14, 2026, covered four major items: the 2025 financial audit, the 2027 recommended supplemental budget, indoor recreation financing options, and an update on persons experiencing homelessness. The council discussed the city's financial health, debated levy increases and credit card fees, considered future indoor recreation projects, and received a detailed report on police outreach and homelessness reduction efforts.
Indoor recreation financing options, and then we'll wrap it up with persons experiencing homelessness update. So with that, I will uh turn it over to Jason Boynton, who is with uh Cohen Resnick, and uh to discuss our audit. All right, well, Mayor Norton, Council President Schuberging, Council members, um Jason Boynton from Cohn Resnick here to uh review the results of the 2025 audit of the city's financial statements. Um I've got a slide deck of about uh 50 slides or so here. Um I'm gonna move pretty expeditiously through them. We're gonna take kind of a real high level, you know, look at the activity for 2025. Uh but certainly as we go through, if you have any specific questions, don't uh hesitate to stop me and uh we'll address those at the point. I do have if anybody needs paper copies, I do have those as well if anybody would like. So all right, so advance the slide here. The clicker? Yeah. Yes, yes, sir. Okay. All right. So we are issuing an unmodified opinion on the city's financial statements. Uh many refer to that as a clean opinion, just it means that based on the work that we did, our team did. Uh, we feel uh comfortable issuing or um saying that the financial statements are fairly stated in accordance with generally accepted accounting principles. Uh just a reminder for council there are a couple elements within the city's financial report that our firm, Cone Resnik did not uh audit. Uh that was the electric and water utility funds and the uh DMCC, which is a blended component unit by accounting standards. Okay, so we uh they were audited by other auditors who issued unmodified opinions on their financial statements, and then we rely on that opinion that they uh on the work that they did in issuing our overall opinion on the financial statements. Um the city does participate in the GFOA's certificate of achievement uh for financial excellence of financial reporting program. So that was a program started by the uh GFOA many years ago to encourage governments to go up above and beyond the minimum reporting requirements to provide more information, more detail in their annual financial report. And so the city participates in that. Uh we are submitting that for the 2025 report, uh, but we also did for 2024 we received the award, uh, which I think it was the 54th year in a row uh that the city has received it almost back to the beginning of the program, I think. So that just demonstrates, continues to demonstrate the city's commitment to quality financial reporting. In addition to issuing the opinion on the financial statements, uh we are required to perform a special federal program audit. So this is uh procedures that we have to do just on federal grant dollars based on the volume that the city gets of federal grant dollars and a specific procedures, making sure we're in compliance with federal requirements. So uh we will do that in uh July August time frame, and then we'll issue that report prior to its due date at the end of September of 26. And lastly, uh we did sit down last week, last Monday with the audit committee. Uh we went over the results of the audit. Um we talked about accounting standards, kind of both current and and future ones that are coming and reviewed the auditors responsibility letter. And I want to thank the uh people that participate in that audit committee for for meeting with us. Uh that's a quick summary of the audit. Uh everything went fine. We didn't have any issues that we feel like we need to bring to council's attention today. So we like to take this opportunity then since um we've completed the audit procedures to then again take a look at kind of the high level uh review of the finances for 2025. So we are looking back in the rearview mirror, right? Uh but it'll give you some context and and uh uh some additional information as you move into your other discussions as we go on. So we're gonna start out with uh governmental fund types and they're listed there. Uh your general fund, your special revenue funds, which have specific purposes for tracking them separately, our CIP fund, and then our debt service funds for the bonds servicing of the bonds. And then we'll switch over to uh proprietary funds, which are enterprise funds, which are the utilities, and the internal service funds. Um these are both are accounted for differently, they're full accrual accounting versus governmental accounting on the governmental funds, and then enterprise um those types of funds are external customers, so the parking electric are all servicing for or providing services for external customers, whereas internal service funds as the employee uh name implies is is utilized within the government itself. So just getting her to click forward here. We can see the slide that internet spot frame. Okay. I'll trust it, and you'll tell me if it's not. All right. Um, so first chart we're looking at here, chart five, um general fund revenues and expenditures, and just a little housekeeping before we start uh getting into the numbers. Um couple things. The most of the charts that you're gonna see are going to be pretty similar, they're they're grouped by year with three different columns with multiple information in each column.