A special meeting of the Council for the City of Crystal Falls was held in the Council Chamber of the City Hall on Monday, January 22, 2001 at 4:30 P.M. Central Time.

Present: Mayor Cram, Councilors Hendrickson, Nylund, Benda and Lind

Also present were City Attorney, City Manager and City Clerk.

The purpose of this special meeting was to review the 1999-2000 fiscal year audit as prepared by auditor Scott Kenney.

Mr. Kenney presented the audit to the Council and reviewed the financial statements. He noted that due to various projects and commitments the city has restricted its reserves to the point where only about half are available for use and cautioned the Council to prioritize and watch spending. Mr. Kenney’s comments and recommendations to further improve the accounting of the city included:

Adoption of a plan to establish costs of the city’s infrastructure assets, determine their level of repair and remaining useful life, and the establishment of a policy for the capitalizing of assets with an economic useful life of more than one year and a cost of $1,000 or more

Establishing a property ledger to maintain an accurate listing of additions, disposals and related depreciation for the various Enterprise Funds maintained by the City.

Further improvements to the purchase order process to include the price of the item being ordered at the time the order is placed.

Continue periodic financial reports to Council for each of the City’s funds.

Recording of equipment rentals to utility funds on at least a quarterly basis.

Recording of cash disbursements to the correct periods.

The establishment of a Perpetual Care Fund as a non-expendable trust fund with only the earnings spent on cemetery expenditures.

Recommendation that the City review its water rates and increase them to a level that will allow the City to accumulate the capital necessary to pay for its anticipated plans.

Mr. Kenney went on to thank the Council for allowing him to conduct the audit and further to thank Chuck Nordeman, Dorothea Olson, Mark Simeoni, Angelo Diqui, and Dennis Fabbri for their assistance during the audit.

Councilor Lind, supported by Mayor Cram, moved to accept the 1999-2000 fiscal year audit as prepared by Scott Kenney, and further to take his comments and recommendations under advisement.

Yeas: Mayor Cram, Councilors Nylund, Hendrickson & Lind

Nays: None

Abstain: Councilor Benda

Motion carried.

There being no further business on the agenda for this special meeting, meeting adjourned at 5:14 P.M.