The Osseo City Council received its 2016 audit report during its Monday, May 8, meeting.
The council also recognized students from Osseo Senior High School.
The council received the 2016 audit report. Matt Meyer from Bergan KDV presented the council with the findings from the audit.
“The audit is a two-part process,” Bergan said. “The city does a lot of work getting for the year end. They put the books together, get all the numbers together and makes my team’s job a lot easier coming in.”
The city’s General Fund revenues totaled $2,295,594 for the year-end, Dec. 31. This represented an increase of $19,968, or 0.90 percent compared to 2015. The increase was due to an increase in property taxes, which was offset by a decrease in licenses and permits and intergovernmental revenue.
Bergan said tax revenues increased from 57.4 percent in 2015 to 60 percent in 2016, due to an increase in the General Fund property tax levy. The city’s main revenue streams are taxes (60 percent) and intergovernmental revenues like Local Government Aid (31 percent).
“You’ve actually been losing a little bit of LGA the last couple of years running,” he said. “So to make up for that, there’s not too many other places to go. The property tax levy is one. Having that steady property tax growth, basically covers the inflationary cost of doing business in the General Fund.”
Other revenues come from: licenses and permits (5.6 percent), charges for services (0.1 percent), fines and forfeitures (1.5 percent), special assessments (0.3 percent) and miscellaneous (1.4 percent).
General Fund expenditures in 2016 were $1,717,471, which was an increase of 4.3 percent over 2015. The expenditures are broken down by: public safety (51 percent), general government (33.6 percent), public works (11.3 percent) and culture and recreation (4.1 percent).
“Expenditures actually came in a little over budget this year,” Bergan said.
The expenditures increased in 2016 in the public works area of $65,112 was due to the department being fully staffed. The cultural and recreation expenditures increased by $41,983 because of a reallocation of personnel costs and insurance along with the city’s first-time summer recreation program.
The city’s total revenues have exceeded total expenditures in the General Fund.
“You have a fund balance policy that says you want to have 40 percent to 50 percent of next year’s budget in fund balance at the end of the year,” Bergan said. “That includes the transfers out to the other funds. If we take a look at the budget for 2017 you’re going to find that you are about 39 percent of next year’s budget. So you’re falling a little bit under your threshold for that.”
He added the policy says because the level fell, the city will take action this year to get back into the 40 to 50 percent range.
Bergan said the city’s utility funds (sewer, water and storm sewer) are all profitable.
Also during the meeting, the council recognized students from Osseo Senior High School that participated in and earned trips to the Minnesota State tournaments.
Osseo Senior High School Activities Coordinator Bill Quan introduced the students.
Tina Boe and David Hainlein are AAA award students. Margot Coomes is an Athena Award winner. Maren Strootman made it to the Nordic State meet.
The robotics team of Osseo Bomb Squad include: Brady Quan, Carson Wiles, Matt Oujiri. The team won the Middle School Vex Robotic State Tournament and qualified for the Vex Robotics World Tournament.
Osseo Robotics #2845 with members Joel Iverson, Matthew Larish, Joseph O’Sullivan, Xander Nelson and Darren Malaythong will be representing OSH at the Vex Robotics World Tournament.
Wrestlers Nick Carline and Mitchell Lewison qualified for the 2017 state wrestling tournament.
The OSH powerlifting team also were the state champions.
“I want to thank you for creating the time to let us celebrate some of the great things going on at Osseo Senior High School,” Quan added.
In other action, the council:
APPROVED the hiring of Mark Marah as a Part-Time Police Officer.
ADOPTED a resolution approving the interfund transfers and payment of interfund loans.
APPROVED the SAC (Sewer Availability Charges) Deferral Program agreement with the Metropolitan Council