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City Council Minutes Page 3 of 6 <br />June 3, 2024 <br />6.2 Annual Comprehensive Financial Report for Year ended December 31, 2023 <br />Ms. Stich introduced Andrew Grice, Bergan KDV, who presented the staff report. He reported <br />following Bergan's audit for the fiscal year ending December 3 I, 2023, they have issued a clean, <br />unmodified opinion, the best they can issue. There were no deficiencies or material weaknesses to <br />report. <br />Mayor Dietz asked if there was a difference if the city reserves were at 40% or 43%. Mr. Grice explained <br />that a higher percentage is better for bond ratings and provides more flexibility. <br />Mayor Dietz reviewed the balance of the liquor stores and stated Highway 169 construction had <br />affected 2023 revenue. <br />Mayor Dietz clarified the long-term debt amounts listed. <br />Mayor Dietz stated that the fire relief association may ask for an increase in their benefits for 2025. <br />Councilmember Westgaard asked why the expenditures in Parks and Recreation were less than <br />expected. Ms. Stich stated she would research. <br />Moved by Councilmember Westgaard and seconded by Councilmember Beyer to accept, <br />by motion, the Annual Comprehensive Financial Report for the City of Elk River for the <br />year ended December 31, 2023. Motion Carried 5-0. <br />7. PUBLIC HEARINGS <br />7.1 Resolution 24-30: Tax Increment Financing District and Plan for Heritage Millwork, Inc. (TIF No. <br />29) <br />Mr. O'Neil introduced Milcaela Huot, Baker Tilly, who presented the staff report. Ms. Huot provided <br />a financial review and needs analysis based on a TIF plan for the original 110,000 SF building and 40,000 <br />SF expansion. The maximum term is nine years. <br />The Joint Finance Committee and EDA provided recommendations for approval. <br />Mayor Dietz asked what the proposed interest rate would be. Ms. Huot stated it would be 5%. <br />Mayor Dietz opened the public hearing. There being no one to speak to this matter, Mayor Dietz closed <br />the public hearing. <br />Moved by Councilmember Grupa and seconded by Councilmember Beyer to adopt, by <br />motion, Resolution 24-30 creating TIF District No. 29 and adopting the TIF plan. Motion <br />Carried 4-0. Councilmember Westgaard abstained, consistent with the city's conflict of <br />interest ordinance. <br />8. GENERAL BUSINESS <br />Page 6 of 372 <br />