At the December 20, 2012, City Council Meeting, Wood-Richards and Associates, Independent Auditor, gave the Financial Statements and Audit Report for the year ending June 30, 2012. The audit was completed and there are no findings needed to be communicated. The 1% building fee quarterly reports for state compliance, were turned in late. Ail accounts and departments are within the budget. General cash revenue was near to the prior year. Restricted cash income was up significantly. The unassigned fund balance available for general use is $165,804, up $18,000. The Pioneer Special Service District had increased expenses for major projects of $27,534. The unreserved funds is $22,081, $18,000 less than in 2012. The total district revenues was $45,071. The Independent Auditor reviewed the City Comparative Analysis for cities under 15,000 population from June 30, 2011. He reported the city is in very good condition, especially compared to other communities. The city has business friendly policies that can be seen in the analysis. He appreciated the cooperation of the administrative during the audit. The motion to accept the audit report passed. Other Governing Matters City Administrator Bill Morris gave the annual training presentation on the Open Meeting Act, and answered questions of the council. He then gave the training on Unlawful Discrimination and Harassment, outlining the process of filing and processing a complaint, and answered questions at the council meeting on February 16, 2012. Concerning the request to name a portion of 1200 West to honor veterans, Rob Smout moved to name 1200 West "Veterans Way." Motion failed for lack of a second. President Dennis Illum moved to allow staff to post a sign at the intersection of 400 North designating 1200 West with a sub-classification as Veterans Way/Tomlinson Road. The motion passed 4 to 1, with Kim Slater voting no, at the February meeting.. In February 2012, a Membership Certificate from the Utah Association of Special Districts, (UASD) officially acknowledged that the Pioneer Special Service District had been admitted into membership, and is entitled to all the privileges thereof for the year ending December 31, 2012. On April 19, 2012, at the City Council Meeting, Aaron Eapley from Holbrook Asphalt gave a presentation about a surface treatment to help preserve asphalt. It is a very thin (less than 1/8 inch thick) surface treatment which extends the life and use of asphalt roads. Residents prefer this treatment versus chip seal as it is not as messy. It has a 5 year warranty. Holbrook Asphalt has used this procedure in municipalities since 2009, with very good results. It holds up very well in winter. Trent Meyerhoffer said the product is slightly cheaper than chip seal. The proposal from Holbrook Asphalt to use HA5 road product at Spencer Farms and Mill Creek subdivisions was discussed. Trent Meyerhoffer has seen this material on a project in St. George which was used ten years ago, and it has held up very well. The allotment of funds for the Holbrook Asphalt bid of $28,473.06 was accepted and approved by a three to one vote by the council. The Presidential Election was held at the city office on November 6, 2012. Early voting was held for the last three weeks in October. The polls were consistently busy as voters cast ballots. Other federal, state and local offices were also on the ballot. Our city office location was one of a few where ballots could be cast by anyone living within Weber County. 9