2020-05-26 CC Meeting MinutesMOUND CITY COUNCIL MINUTES
May 26, 2020
The City Council of the City of Mound, Hennepin County, Minnesota, met in regular session on
Tuesday, May 26, 2020 at 7:00 p.m. remotely using the ZOOM videoconferencing website.
Members present: Mayor Ray Salazar; Council members Phil Velsor, Jeff Bergquist, Paula
Larson, and Sherrie Pugh
Members absent: None
Others present: City Manager Eric Hoversten, Fin Dir/Clerk/Treasurer Catherine Pausche,
Community Development Director Sarah Smith, Steve McDonald, Jay Soule
Consent agenda: All items listed under the Consent Agenda are considered to be routine in
nature by the Council. There will be no separate discussion on these items unless a
Councilmember or citizen so requests, in which event it will be removed from the Consent
Agenda and considered in normal sequence.
1. Open meeting
Mayor Salazar called the meeting to order at 7:00 p.m.
2. Roll Call
Mayor Salazar read each Council Member's name and they replied `here.'
3. Pledge of Allegiance
4. Approve agenda
MOTION by Bergquist, seconded by Larson, to approve the agenda. Roll call vote In Favor:
Larson, Velsor, Bergquist, Pugh, Salazar Opposed: None Abstain: None. Motion carried.
5. Consent agenda
MOTION by Velsor, seconded by Pugh, to approve the agenda. Roll call vote In Favor: Larson,
Velsor, Bergquist, Pugh, Salazar Opposed: None Abstain: None. Motion carried.
A. Approve payment of claims in the amount of $569,090.13.
B. Approve minutes: May 12, 2020 Regular Meeting
C. RESOLUTION NO. 20-49: RESOLUTION EXTENDING LIQUOR STORE
EMPLOYEE PERFORMANCE INCENTIVE PAY PROGRAM DURING THE COVID-19
PANDEMIC
6. Comments and suggestions from citizens present on any item not on theagenda.
None were offered.
7. Steve McDonald, representing Abdo, Eick & Meyers, LLP, Presenting the 2019
Comprehensive Annual Financial Report and Management Letter, and reguesting action
receiving the same
Mound City Council Minutes — May 26, 2020
McDonald noted that a qualified opinion is given because the City has chosen not to adopt
GASB 75 & 68 due to the added actuarial expense and perceived benefit of the information.
McDonald thinks that is reasonable. McDonald noted there was one minor legal compliance
finding where an invoice was not paid within the required 35 days due to a staff leave of
absence. McDonald also noted the prior year finding related to collateral was removed because
upon further investigation the SWEEP services were determined to be an investment not
subject to collateral requirements.
McDonald walked through the charts, noting taxes are the highest source of General Fund
revenue and Public Safety is the largest expenditure, which is consistent with other cities and
that the General Fund only utilized $89K of reserves compared to the $304K budgeted.
McDonald noted the Capital Projects Fund 401 increased fund balance by $424K due to special
assessments and levies exceeding expenditures.
McDonald said the Special Revenue Funds include Fire which has healthy reserves of 40% of
expenditures, Docks, and the HRA Fund which improved working capital by $71 K over the prior
year.
McDonald noted there is $22M in outstanding bonds for the governmental funds mainly related
to street projects and showed a graph of how the principal and interest will diminish over the
next 10 years if no further debt were issued.
McDonald noted the liquor fund improved both Gross Profit and Operating Income over the prior
year and both indicators were favorable to the state wide averages provided by the Office of the
State Auditor.
McDonald noted there were refunding bonds issued in late 2018 that were not used until
February of 2019, so there are dramatic changes in cash for the Water, Sewer, and Storm
funds. McDonald said he understood Management and Council strategy on balancing rate
increases and cash flow, but noted it will be imperative to monitor rates and operating expenses
to ensure cash flow challenges remain manageable. McDonald noted all three funds now have
large cash deficits that were supplemented by other funds, including the recycling fund for year-
end reporting.
McDonald then shared a series of Key Performance Indicators that compare Mound's averages
with peer Class 4 cities and cities in Hennepin County. McDonald said Mound's tax rate is
lower but Mound has a higher debt per capita, something bond rating agencies consider.
McDonald thanked the Council and Management for the opportunity to serve Mound and the
Mayor thanked McDonald for the service and the fine presentation.
MOTION by Pugh, seconded by Bergquist, to receive the 2019 Comprehensive Annual
Financial Report. Roll call vote In Favor: Larson, Velsor, Bergquist, Pugh, Salazar Opposed:
None Abstain: None. Motion carried.
8. Sarah Smith Community Development Director, requestinq discussion and action on
a Resolution on the COVID 19 pandemic and local regulations
Smith said any flexibility granted would be subject to a 50 -person max, social distancing and the
requirement for serving staff to wear a max. Smith noted if people have been watching the
news that this is a common action being considered by communities. Smith said this action
allows for administrative flexibility instead of going through the CUP amendment process and
Mound City Council Minutes — May 26, 2020
also allows the opportunity for businesses with limited outdoor space to use public lands subject
to a license agreement. Smith said this is a temporary measure and there is a specified end
date of October but also may be subject to changes in the executive orders. Smith applauded
the Council for acting so quickly to accommodate struggling businesses in our community.
Salazar thanked Staff for the quick thinking and for thinking outside the box. Salazar said he
hopes it will help but he looks forward to when they can reopen their dining rooms. Bergquist
asked that since the situation is so fluid, can this change along with any changes to the
governor's order. Smith stated the resolution as written offers a lot of flexibility.
Velsor reiterated thanking staff for hopping on this. Smith applauded a local business that
requested the city to consider these measures.
MOTION by Velsor, seconded by Larson, to adopt the following resolution. Roll call vote In
Favor: Larson, Velsor, Bergquist, Pugh, Salazar Opposed: None Abstain: None. Motion
carried.
RESOLUTION NO. 20-50: RESOLUTION AUTHORIZING THE GRANTING OF
REGULATORY FLEXIBILITY TO LOCAL BUSINESSES
9. Information/Miscellaneous
A. Comments/reports from Council members/City Manager:
B. Reports: Finance Department — April 2020
Fire Department — April 2020
Engineering — 03-31-20 YTD
C. Minutes:
D. Correspondence:
10. Adjourn
MOTION by Velsor, seconded by Bergquist, to adjourn at 7:40 p.m. Roll call vote In Favor:
Larson, Velsor, Bergquist, Pugh, Salazar Opposed: None Abstain: None. Motion carried.
Mayor Raymond J. Salazar
Attest: Catherine Pausche, Clerk