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HomeMy Public PortalAbout20020627CCMeeting1 1 2002 -06 -27 City Council Minutes Mayor Walter Parker called the meeting to order at 7 P.M. Council members present were as follows: Jimmy Burke, Jack Youmans, Whitley Reynolds, Walter Crawford, Jason Buelterman and Richard Barrow. Parker said we only had two items on the agenda, the Budget adjustment and a request for special event permit for entertainment at the North Beach Parking Lot on Labor Day Weekend. Parker, said Gordon Vamedoe had asked him to get an idea of the council's feelings for such an event. He probably would have a band and it would be for only 1 day. Youmans and Crawford voiced concerns on behalf of the area residents as to traffic, noise and safety, suggesting that maybe we should talk to some of the residents and get their opinions. Parker said he would advise Vamedoe to apply for the special permit. The next item was the budget adjustment. Parker called on Greg McLean, Finance Director, for explanations. McLean said that some items were purchased and there was no line item number in place due to the change in programs. Burke asked about the vehicle line item and why it was over. McLean said there was some misunderstanding regarding the type of lease plan from GMA. He also said some items purchased were approved by council and were in the budget, and some items were not. These items were approved for purchase by the previous city manager. Bob Thomson, current City Manager, said this was not common practice and safeguards were in place to prevent this in the future. Items of $500.00 required approval of Finance Director and items of $5000.00 or more required bids be taken. Crawford said we need to draw the line now and if unauthorized purchases are made in 2002, we need to notify the GBI and see if criminal charges can be made. Reynolds motioned to approve the budget adjustment, Barrow seconded. Vote was 3, Reynolds, Buelterman, and Barrow for, and 3, Burke, Youmans, and Crawford opposed. Mayor Parker voted in favor, breaking the tie. Under the budget items, the amount of $138,000.00 in the Water /Sewer A/R was unreconciled. McLean said that in October of 2001, when he started work here, he could see something was amiss and brought to the city manager's attention. He completed a comprehensive study and determined that not as much water was used as in the previous year, and, also not as much was collected for new water /sewer taps. McLean said he and the auditor, Chris Lightle, agree that it was a combination of errors and lack of follow up that probably caused $48,000.00. However, they say that $50,000.00 is something else. McLean said that he is guessing, but that he feels that during the conversion to new software, perhaps that wrong balance was used. He said it could be any one or more of a number of things. All that studies and collection test support the smaller number, indicating that this figure is overstated. McLean added that the $50,000 error could have been avoided if the accounts had been reconciled regularly but were not. Lightle said that, in his opinion, this is due to human error not theft. Lightle went on to say that he had found no evidence during his audit to support any inappropriate action by any employee. He agrees that he believes the accounts were overstated. When asked if we could get weekly, monthly or quarterly reports to be sure everything was in balance, McLean said yes, could even do it daily. It would take about 5 seconds. Parker said we needed to approve adjustments by June 30, 2002 or we stand a chance that the state will deny grant monies. Buelterman asked what would happen if we didn't make this adjustment to the Water /Sewer Budget? Lightle said the City would have to pay higher interest rates for loans from the state and would risk losing state grant money because we would have to submit our budget with a "Qualified Report". Buelterman asked that this be put in the minuets verbatim. He added that we could keep on trying to reconcile and if we find something it can be put back in. Burke said something was wrong and he was not in favor of writing it off. McLean said the program is good and the tools are there, the employees just have to use them. Reynolds and Crawford asked if we would be safe in 2002. Lightle answered that he had, for years, recommended that the City separate duties and it never has been done. Thomson said he was confident, with current personnel, it could be done and prevent this from happening again. Crawford asked if it was possible to notify the council members, on a regular basis, of the status of accounts. McLean said he could have a report monthly and put in the council packets. Buelterman motioned to make the adjustment and to go back and find reason as time allows, and to report at the Council August meeting, Reynolds seconded. Vote was 4, Reynolds, Youmans, Buelterman, and Barrow in favor, and 2, Burke and Crawford, opposed. The third item in question in the budget was $450,000.00 in the Beach Renourishment fund. Crawford said it takes approval of council to spend any of that money and $30,000.00 has been spent and was not all approved. He said in March 2001, $20,000.00 was approved for a study plan and another $9,000.00 was spent without approval. This unauthorized expenditure was approved by the, then, city manager. Barrow asked if we now had the mechanics in place to make sure this does not happen in the future. Thomson answered that he wanted to assure the council that he would not approve anything if not approved by council first. Mayor Parker declared the meeting adjourned and left the hall. Burke asked that it be shown in these minutes that he did not vote to give away $50,000.00 of the citizen's money. Walter Crawford took over the meeting after Parker walked out. Reynolds motioned to adjourn, seconded by Youmans. The vote was unanimous.