Osseo accepts favorable audit report


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The Osseo City Council accepted its 2011 audit during its meeting Tuesday, May 29.

Here are some of the meeting’s highlights.

2011 AUDIT

The council heard from City Auditor Matt Mayer regarding the 2011 audit. He said he was there to give a clean opinion of the city’s best record of financial statements.

The city has $1.711 million in its revenues and $1.484 million in expenses in 2011. There were $227,000 in transfers out.

The city kept a balanced budget in 2011 with no change in its fund balance. He said the city’s general fund is healthy.

"The revenue totaled about $1.7 million," Mayer said. "That’s about $21,000 better than anticipated."

The police aid was better than budgeted. Also helping, were donations to the city from the public.

The expenditures were right on budget. "You spent about $10,000 under what the budget authorization was," Mayer added.

He said the city’s fund balance was at 48 percent, which is recommended.

Most of the city’s funds are being spent on public safety, general government (financial/administration/clerk), economic development, public works and parks.

The city’s property tax levy was $1.249 million in 2011. "The challenge has been you have a declining tax base," Mayer said. "That’s the same story across the state… Property tax rates have been increasing."

As for the city’s different utility funds, Mayer touched on them briefly.

The water fund had a good year. He said the rates were up, but so was usage. There was an operating loss in 2011, but in 2011 there was income of $63,000.

The sewer fund’s rates were flat the past few years and on a steady decline. Mayer recommended the council look at the rate structure because the fund is not covering the operating costs.

The city’s storm water fund had a significant rate structure change in 2011, which gave the fund revenue spike. "It appears, to us, that the rate structure is going to be stainable to cover the cost of the storm water fund," he said.

The recommendations Mayer told the council, were mostly "housekeeping." One was to keep the city’s and Economic Development Authority (EDA) funds separate.

He added there were some EDA funds with deficit. Mayer suggested the city delete funds with no activity.

No other action was needed or taken.


In other action, the council:

NOTED the Osseo Marching Band Festival is Saturday, June 23, with the parade starting at noon.

SET the Osseo City Clean Up day for Saturday, June 16, from 8 a.m. to noon at 800 Broadway Street E.

APPROVED the second readings and adoptions of: the ordinance amendment to the city code for drainage and grading, the ordinance amendment to the city code for erosion control and the ordinance amendment to the city code for illicit discharge detection and elimination.