[gview file="http://69.89.31.68/~vdoenhor/wp-content/uploads/2015/03/CM021115.pdf"]VILLAGE DISTRICT OF EIDELWEISS
COMMISSIONERS MEETING
February 11, 2015
The Board of Commissioners met at 9:00 am on Wednesday, February 11, 2015. In attendance were Commissioners Ron Sandstrom, Mike Smith and Larry Leonard. Also in attendance were Auditor Tamar Roberts, Treasurer Dinah Reiss, residents Ralph Lutjen and Mark Graffam.
At 9:00 am the meeting was called to order by Chairman Ron Sandstrom.
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1. Agenda
Mike Smith makes a motion to add Commissioners Reports and approve the agenda as amended. Ron Sandstrom seconds the motion and the motion passed 3-0.
2. Commissioners Reports
Mike Smith discusses the need of a culvert repair at #7 Middle Shore Drive. The culvert was placed over the curb stop valve and was cut back to facilitate repair of the curb stop.
3. Signature Items
Mike Smith makes a motion to sign the Warrant for the 2015 Annual Meeting. Ron Sandstrom seconds the motion and the motion passed 3-0.
Mike Smith makes a motion to sign the Department of Revenue form MS-636. Ron Sandstrom seconds the motion and the motion passed 3-0.
Mike Smith makes a motion to sign the letter to Ed Foley outlining actions the VDOE will take to test the pressure at the house on Grachen Extension. Ron Sandstrom seconds the motion and the motion passed 3-0.
4. Administration
The Top Kick leaf springs were repaired yesterday.
Ron Sandstrom discusses the cost of owning a vehicle, including loan cost and depreciation of the vehicle over the term of ownership.
An International Terra Star has been brought to the District to be viewed and driven by the crew to check handling and braking on the hills.
Discussion is held on the Unassigned Fund Balance and relation to cash flow throughout the year. The manner of appropriating funds from the Unassigned Fund Balance is outlined. The ability to reconcile the Unassigned Fund Balance to cash is desired.
Discussion with Auditor Tamar Roberts begins at 9:20 am.
Tamar Roberts discusses the Unassigned Fund Balance of the District and recommends the Board review the Unassigned Fund Balance Policy. Tamar Roberts outlines that in order to spend the unassigned fund balance, a tax anticipation note (TAN) would be needed to supplement available cash. Use of the Unassigned Fund Balance to reduce the tax rate through use of the Department of Revenue Administration MS-35 is outlined by Tamar Roberts. The balance sheet for 2014 is reviewed and discussed. Expendable cash flow, the cyclical nature of cash flow and tax income are discussed. The use of a TAN to supplement cash flow, the paying off any TAN loan upon receipt of the tax income and the continued cycle of this flow are discussed. The ability to purchase from the unassigned fund balance, the relation between a lower balance and restricted cash flow between receiving of tax income checks are discussed. The unassigned fund balance reconciling to cash is still unclear. Increases to the unassigned fund balance over the years, receivables on the District’s books, including the second tax payment each year on December 31 and how this reconciles to available cash is discussed. The schedules of the 2014 Audit are reviewed. The timing of income and the effect on the available cash are discussed. The intentional use of the unassigned fund balance for benefit of the tax payers over the past few years to the level at which cash flow would be effected is outlined and discussed. The need to fully understand additional expenditures from the unassigned fund balance total effect on the District’s cash flow is discussed. The Commissioners Management Discussion and Analysis (MD&A) is reviewed and discussed. Information on use of TAN loans and overall cash flow should be included within this document.
Mark Graffam asks if the Commissioners have changed the Unassigned Fund Balance Policy. Ron Sandstrom replies that they have not proposed any changes to that Policy at this time.
Ralph Lutjen states to the Commissioners that it is acceptable practice to use a TAN loan to supplement cash flow until receipt of the next tax check. It is apparent that the reduction in the unassigned fund balance and the effect on cash flow may create need for a TAN. Policy should not be set so as to avoid the need to use the tool that is a TAN loan.
The Treasurer’s agreement that is currently in place is discussed. Treasurer Dinah Reiss could approach the Town of Madison Treasurer for discussion on altering the current agreement in place. Larry Leonard makes a motion to request Treasurer Dinah Reiss pursue an updated agreement with the Town of Madison Treasurer. Ron Sandstrom seconds the motion. Discussion on obtaining input on proceeding from Attorney Dan Crean is held. Motion is called to a vote and the motion passed 3-0.
Discussion is held on finalizing the MD&A. In order to include the document within the published audit booklet, it would need to be completed next week for submission to the Auditor.
The cash flow spreadsheet and time needed to update this document is discussed. Ron Sandstrom makes a motion to complete the cash flow spreadsheet. Mike Smith seconds the motion. Discussion is held on benefit of working on this spreadsheet at this time. Ron Sandstrom withdraws the motion.
The International Terra Star is discussed with Liberty International Representative Jim Ramsey. The recommendation would be to own the truck for 7 years and then trade it in. If trading in of vehicles is done while the vehicle still has a higher value, the cost of ownership can be quantified. Expected repairs and maintenance costs can also be quantified for this time period. Jim Ramsey offers to bring the vehicle to the Annual Meeting, if the Board thinks it would be beneficial. Mike Smith makes a motion to have the Terra Star at the Annual Meeting. Ron Sandstrom seconds the motion and the motion passed 3-0.
5. Other Business
6. Public Comments
At 11:10 am Mike Smith makes a motion to adjourn the meeting. Ron Sandstrom seconds the motion and the motion passed 3-0.
Respectfully submitted,
Nancy E. Cole
Administrator
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