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ARE GOOD.GOOD AFTERNOON EVERYONE, AND WELCOME TO THE HARLAN CITY COMMISSION SPECIAL MEETING.
WE'LL CALL THIS MEETING TO ORDER IT THAT HAS BEEN POSTED AS REQUIRED BY STATE LAW, THE FORM OF THE COMMISSION.
AS EVERYONE IS PRESENT AT THIS TIME, I'LL ASK FOR EVERYONE TO PLEASE RISE AS COMMISSIONER MORALE LEADS US IN OUR ATION TODAY OF THE FATHER AND SON.
FATHER, AS WE ENTER THIS HOLY WEEK, WE PRAY FOR THE WISDOM TO UNDERSTAND THE TRUE MEANING OF EASTER MAKING US WORTHY OF THE PROMISES OF YOUR SON, OUR LORD, AND SAVIOR JESUS CHRIST.
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PLEDGE LED THE BUSINESSES FLAG OF THE UNITED STATES, AMERICA AND TO EVERYBODY STANDS, ONE NATION UNDER GOD, INDIVISIBLE WITH LIBERTY, JUSTICE FOR MARK, A CONFLICT OF INTEREST UNDERSTAND LAW, A CONFLICT OF INTEREST EXISTS BY COUNCIL MEMBER.CERTAIN MEMBERS OF THAT PERSON'S FAMILY IS A QUALIFYING FINANCIAL INTEREST IN AN AGENDA ITEM.
MEMBERS WITH A CONFLICT OF INTEREST CANNOT PARTICIPATE IN THE DISCUSSION OR VOTE ON THE AGENDA ITEM.
ARE THERE ANY KNOWN CONFLICTS OF INTEREST TO DISCLOSE AT THIS TIME? NONE.
UM, IT IS MY UNDERSTANDING MS. MEYER, WE DON'T HAVE ANYONE SIGNED UP FOR CITIZEN COMMUNICATION, SO GO RIGHT INTO OUR ACTION ITEMS. WE HAVE, UM, PRESENTATION AND ACKNOWLEDGEMENT OF THE CITY OF CARLIN'S ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR FISCAL YEAR 2024.
PASCAL IN GOOD EVENING, MAYOR AND COMMISSIONERS.
UH, WE DID CONCLUDE OUR AUDIT, UM, LAST WEEK AS WE HAVE ALFRED BETA FROM CACO AND ASSOCIATES HERE TO GIVE A BRIEF OVERVIEW AND PRESENTATION OF THE OTHER TWO FINANCIAL STATEMENTS.
GOOD EVENING, MADAM MAYOR, UH, COMMISSIONERS.
I'M THE PRINCIPAL WITH PACOS AND ASSOCIATES, AND IT'S BEEN A PLEASURE WORKING WITH YOU ALL, UH, WORKING WITH, UH, WITH ROBERT AND HIS, HIS GROUP.
UM, THINGS ARE A LOT GO A LOT EASIER WHEN YOU GET GOOD COOPERATION, WHEN THINGS ARE WELL ORGANIZED AND YOU GO THROUGH THE AUDIT AND REQUEST ITEMS AND THEY'RE PROVIDED.
SO, UM, I WANT TO GIVE, YOU KNOW, THANKS TO, TO THEM AND FOR YOU ALL ON THE OVERSIGHT AS WELL.
AND WE THANK YOU ALL FOR CHOOSING US TO DO YOUR AUDIT BEGINNING THIS YEAR.
I'M HERE TO PRESENT TO YOU THE ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30TH, 2025.
I WILL GO THROUGH A COUPLE OF ITEMS, UM, INTEREST ON THE REPORT, AND THEN IF Y'ALL HAVE ANY QUESTIONS, I CAN ASK YOU THOSE.
ANYTHING A LITTLE BIT, UH, MORE SPECIFIC.
I'LL TURN IT OVER TO, TO RON IF YOU'LL TURN WITH ME OVER TO PAGE TO PAGE 31.
PAGE 31 CONTAINS THE INDEPENDENT AUDITOR'S REPORT.
AS INDEPENDENT AUDITORS, WHAT WE DO, WE COME INTO AN ENTITY.
WE COME INTO AN ENTITY, WE REVIEW THE POLICIES AND PROCEDURES, AND THEN WE PULL SAMPLES AND WE TEST AGAINST THOSE POLICIES AND PROCEDURES AND WE REVIEW THE FINANCIAL STATEMENTS AND WE PROVIDE REASONABLE ASSURANCE THAT THE FINANCIAL STATEMENTS ARE FAIRLY STATED AND FREE OF MATERIAL MISSTATEMENTS.
HOWEVER, WE DO NOT PROVIDE ABSOLUTE ASSURANCE BECAUSE OUR, OUR LIMITED SCOPE, IF WE WERE TO DO THAT, WE WOULD, WE WERE TO TEST ALL TRANSACTIONS AND THAT WOULD BE VERY COSTLY AND WILL TAKE A LONG TIME.
BUT FROM WHAT WE HAVE REVIEWED AND WE TESTED THE CITY OF HARLEEN FOR THE YEAR ENDED SEPTEMBER 30TH, 2025 HAS EARNED AN UNMODIFIED OR A CLEAN OPINION.
THIS IS THE BEST OPINION THAT AN ENTITY CAN RECEIVE.
THANK THE REASON, THE REASON THAT I SAY IT IS EARNED, IT'S BECAUSE OF THE WORK THAT IS, THAT IS DONE HERE BY THE FINANCE GROUP, THE CITY, AND YOU ALL AS AN OVERSIGHT AS WELL.
IF YOU'LL TURN WITH ME OVER TO PAGE 37.
PAGE 37 CONTAINS THE MANAGEMENT DISCUSSION AND ANALYSIS, THE MANAGEMENT DISCUSSION AND ANALYSIS, OTHERWISE KNOWN AS THE MDNA CONTAINS FINANCIAL HIGHLIGHTS AND ANALYSIS COMPARISONS TO PRIOR YEAR, WHICH IS 2024.
UH, THE COMPARISONS INCLUDE COMPARISONS FOR THE NET POSITION, THE STATEMENT OF ACTIVITIES OF THE PRIMARY GOVERNMENT AND CAPITAL ASSETS AND LONG-TERM DEBT.
NOW, IF YOU'LL TURN WITH ME OVER TO PAGE 57.
PAGE 57 CONTAINS THE BALANCE SHEET FOR THE GOVERNMENTAL FUNDS.
FOR TONIGHT'S PURPOSES, I WILL BE GOING FORWARD.
THE GENERAL FUND AT SEPTEMBER 30TH, 2025, CITY OF ARLINGTON HAD TOTAL ASSETS OF 46,390,000 AND A TOTAL FUND BALANCE IN THE GENERAL FUND OF 41,302,000, OF WHICH 37,044,000 IS UNASSIGNED.
THIS UNASSIGNED BALANCE IS WHAT WE REFER TO AS THE RAINY DAY FUND.
THE CITY CAN USE THIS FOR ANY PURPOSE THAT IT WISHES AT ITS DISCRETION,
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AND WE RECOMMEND THAT YOU DO NOT USE IT FOR ANYTHING THAT WILL DEPLETE IT, SUCH AS SALARIES OR RAISES BECAUSE YOU WILL SEE HOW THIS PLAYS INTO YOUR DAYS OF OPERATIONS.AS I CALCULATE THOSE ON THE NEXT PAGE, OVER PAGE 59 CONTAINS THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES FOR GOVERNMENTAL FUNDS.
AGAIN, I'M LOOKING AT THE GENERAL FUND.
FOR THE YEAR ENDED SEPTEMBER 30TH, 2025, TOTAL REVENUES FOR THE CITY OF CARNAGEN WERE 66,508,000.
TOTAL EXPENDITURES OF 70,810,000 AND TOTAL OTHER FINANCING SOURCES OF 7,466,000.
NOW, IF WE TAKE YOUR TOTAL EXPENDITURES OF THE 70,000,008, UH, 8 0 9, AND WE DIVIDE THAT BY 365, YOU GET $192,000.
THAT IS WHAT ON AVERAGE IS COSTING THE CITY TO OPEN ITS DOORS EACH AND EVERY DAY.
NOW, IF WE TAKE YOUR, WE TAKE YOUR I ASSIGNMENT FUND BALANCE OF 37,044,000, AND WE DIVIDE IT BY 190, IT'S 194,000.
YOU GET 191 DAY, 191 DAYS OF OPERATIONS.
THIS MEANS, THIS MEANS SHOULD NO MORE MONEY COME INTO THE CITY, THE CITY WOULD BE ABLE TO OPERATE FOR ABOUT 191 DAYS.
WE NORMALLY RECOMMEND ANYWHERE BETWEEN 60 AND 90 DAYS.
NOW, IT'S NOTHING TO, YOU KNOW, SAY WE NEED TO BRING IT DOWN, YOU WANT INCREASE.
IT IS JUST YOUR COMFORT LEVEL.
BUT THIS IS VERY, VERY CONGRATULATIONS ON MAINTAINING THAT HEALTHY DAYS OF OPERATIONS.
IF YOU'LL TURN OVER WITH ME TO PAGE 74.
PAGE 74 CONTAINS THE NOTES THROUGH THE FINANCIAL STATEMENTS.
THE NOTES OF THE FINANCIAL STATEMENTS CONTAIN SUMMARY OF ACCOUNTING, UH, POLICIES, SOME INFORMATION REGARDING THE COMPONENT UNITS, DETAILS ON DEPOSITS AND INVESTMENTS, AND MORE DETAILED INFORMATION RELATED TO CAPITAL ASSETS AND THE LONG-TERM DEBT.
THE NOTES OF THE FINANCIAL STATEMENTS ALSO CONTAIN INFORMATION RELATED TO THE PENSION PLANS AND THE OTHER POST-EMPLOYMENT BENEFITS, OTHERWISE KNOWN AS THE OVERHEAD.
AND THE LAST TWO ITEMS TOWARDS THE VERY BACK OF THE REPORT.
THE FIRST BEING THE ON PAGE 360 1 IS THE INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND COMPLIANCE BASED ON AN AUDIT AND GOV, UM, GOVERNMENT AUDITING STATUS.
WE DO NOT PROVIDE AN OPINION ON THE, ON THE INTERNAL CONTROLS, BUT FROM THE TESTING THAT WE HAVE FOUND, THERE HAVE BEEN NO INSTANCES OF NONCOMPLIANCE RELATED TO INTERNAL CONTROLS.
CONGRATULATIONS ON THAT ESTIMATE.
AND THE LAST ITEM ON PAGE 365 IS THE INDEPENDENT REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND INTERNAL CONTROL OR COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE.
THIS IS WHAT IS KNOWN AS THE SINGLE OBJECT FROM THE PROGRAMS THAT WE HAVE TESTED.
WE FOUND NO INSTANCES OF OF NON-COMPLIANCE AND NO SIGNIFICANT DEFICIENCIES OR MATERIAL WEAKNESSES.
THIS IS ALSO AN UNMODIFIED OPINION, CORRECT ME AND OPINION.
THIS CONCLUDES MY PRESENTATION.
IF Y'ALL HAVE ANY QUESTIONS, I, I DON'T HAVE A QUESTION, BUT I WOULD LIKE TO ADD THAT, UH, IN COMPLIANCE WITH THE STATE STATUTE, THEY FILE A COPY OF THE, UH, OF THE CATHERINE WITH THE CITY SECRETARY ON FRIDAY AND IT'S ALREADY ON OUR ON.
SO THANK YOU, UM, FOR DOING A GREAT JOB ONCE AGAIN.
AND I ALSO WANNA THANK OUR, OUR FINANCE DEPARTMENT YEAR AFTER YEAR, UM, EVEN WAY BEFORE I WAS HERE.
THEY'VE BEEN, THEY'VE BEEN DOING A GREAT JOB AND, UM, CONTINUING EXCELLENCE AND PROVIDING THE, UM, OPPORTUNITY FOR EVERYBODY TO SEE ON, ON OUR, ON OUR WEBSITE OBVIOUSLY IS, IS IMPORTANT.
THANK YOU FOR, FOR YOUR HARD WORK.
COURSE TO, UM, OUR FINANCE DEPARTMENT.
UM, YOU MENTIONED THE RETIREMENT PLAN.
UH, WE DID HAVE THE DEFINED BENEFIT PLAN WHEN THEY CAME IN 13 AND A HALF YEARS AGO AND MARKETS WENT SOUTH AND THE CITY HAD PROBABLY UP A COUPLE MILLION DOLLARS TO KEEP THE DEFINED BENEFIT ACTUARIAL PEOPLE HAPPY.
AND SO, UH, TODAY WAS AN UPDATE ON THE MARKET, BUT YEAR TO
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DATE IT'S A DOWN MARKET.AND SHOULD THIS CONTINUE, UM, WE ALL KNOW THERE'S HEADLINES, UH, IN THE NEWS THEN WE SO DON'T GET GIDDY BOYS AND GIRLS, UH, WHEN WE HEAR 191 DAYS OF BALANCE BECAUSE WE MAY HAVE TO PO UP LATER IN THE YEAR, MILLIONS TO KEEP THE DEFINED BENEFIT PLAN SOLVENT.
AND I WILL ALSO TO THAT END, JUST ADD THAT, YOU KNOW, YEAR AFTER YEAR EACH SESSION THE LEGISLATURE IS LOOKED AT, UH, REDUCING FUNDS FOR CITIES IN TERMS OF PROPERTY TAX.
SO WE DEFINITELY WANT TO KEEP AN EYE ON THAT MOVING, MOVING FORWARD.
BUT IN THE INTERIM, UM, OR IN THE MEANTIME, WE, WE'VE, WE'VE GOT A VERY HEALTHY, UM, OPERATING BUDGET, WORKING BUDGET AND, UM, AND A RAIN FUND.
AND SO THAT'S TO THE INCREDIBLE WORK OF, UM, STAFF AND THANK CITY MANAGER ALSO FOR DOING A GREAT JOB AND IS A STAFF AS WELL.
IS THERE ANY OTHER, UM, COMMENTS OR QUESTIONS FROM THE COMMISSION AT THIS TIME HAVING NO OTHER, UH, QUESTIONS THEN? I THINK WE ARE, WE JUST NEED TO ACKNOWLEDGE THE REPORT.
SO AT THIS TIME WE'LL JUST ACKNOWLEDGE, UM, THE REPORT AS PRESENTED.
YOU MOTION, UM, IT DOESN'T CHARGE I DON'T MOTION FOR RIGHT? YOU, YOU, YOU CAN MOVE SOME, ACKNOWLEDGE THE REPORT.
CAN I GET A, A MOTION TO ACKNOWLEDGE THE PRESENTATION AND ACKNOWLEDGEMENT OF THE CITY OF IAN'S ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR FISCAL YEAR 2024.
MOTION BY COMMISSIONER LOPEZ, SECOND BY COMMISSIONER FETIS.
ALL THOSE IN FAVOR SIGNIFY BY SAYING AYE.
AND THAT IS ALL THE ITEMS THAT WE HAVE ON OUR AGENDA, SO THANK YOU.