City Council Minutes

Pursuant to due call and posted notice thereof, the City Council Workshop of the Victoria City Council was called to order at 5:00 p.m. by Mayor Hershberger Thun in the Council Chambers at 7951 Rose.

Members Present: Mayor: Mary Hershberger Thun; Councilmembers: Kim Roden, Rick Tieden, Jim Paulsen, and Tim Amundsen.

Others Present: David Urbia, City Administrator, Steve McDonald, Abdo Eick & Meyers, Sue Orsen, Victoria Gazette, Tanya Schmieg, Recording Secretary.

Mr. McDonald provided background on where this originated. He said the audit standards are changing. Mr. McDonald reviewed the Council strategic plan related to internal control responsibilities. He said this helps identify areas to look for. Mr. McDonald stated in the smaller environments they have learned that procedures matter more than trust.

Councilmember Roden stated it is important to make sure the bidding processes have been done.

Mr. McDonald said a definition for each fund could be put in place. One of the action items is more narrative on a quarterly basis.

Councilmember Roden said fewer numbers, more analysis and more trends would be helpful.

Mr. McDonald noted the risk in smaller cities is not paying attention to trends.

Councilmember Roden said it would also be helpful to have a more solid assessment of comparables. Councilmember Paulsen said they need the measurement. Mr. McDonald said there are ratios on debt per capita.

Mr. McDonald said the cities that are doing the right thing are the ones who look to the future. He said you want to have a good partnership.

Mr. McDonald said auditors can’t be part of the management decisions.

Mr. McDonald reviewed the City of Victoria – Finance Department questions. He said the biggest danger is the management override. He noted to focus on the process, not the person.

Councilmember Paulsen asked about the measurements for interfund borrowing. Mr. McDonald said there are varied approaches and some won’t touch it at all.

Mayor Hershberger Thun stated they have to have a policy. Councilmember Paulsen said he doesn’t want the policy in a book. Mr. McDonald said the Council has to determine the policies and procedures.

Mr. McDonald suggested prioritizing the key issues.

Councilmember Amundsen said the executive summary report would be useful to have on a routine basis with groups in subheadings and then have the key interest areas.

Councilmember Roden said her list would be:

1. Better reporting and more analysis

2. Financial policies

3. How often management overrides are done

4. Trends

5. Benchmarks with comparable cities

6. Understand interfund borrowing with sample policies from other communities

Mayor Hershberger Thun referred to the Council financial duties as a to do list.

Mr. McDonald stated the budget report is intended to be one page.

Councilmember Roden added another item to her list: engineering fees

Mr. McDonald talked about managing the tax rate. Mayor Hershberger Thun commented on the goals.

Mayor Hershberger Thun asked what is the next step. Mr. McDonald said to start with the first quarter report. Mayor Hershberger Thun said this should be expected sooner than the month and week they have to wait for it.

Councilmember Paulsen questioned the best accounting software for businesses. Mr. McDonald commented on some of the software and said changing software doesn’t get you anywhere. He noted 75% of the cities are using the same software as Victoria and it is the best value. Mr. McDonald said he would send the database they have to Councilmember Paulsen.

Mr. McDonald noted this is an ongoing process.

The workshop was adjourned at 6:15 p.m.

Respectfully submitted,

Tanya Schmieg
TimeSaver Off Site Secretarial, Inc.