Wyoming audit shows clean bill of health
Wyoming City Council has received a clean bill of health with the results of the 2011 city financial audit. The audit was presented on Tuesday, July 3 by Brad Falteysek of Abdo Eick & Meyers, LLP.
Some deficiencies were noted in the segregation of duties. Due to small staff it is not possible to separate all financial duties, the auditor said. Because of this the city relies on oversight by supervisors and the council, Falteysek said.
A reserve fund balance of about 50 percent of the city budget is recommended to provide cash flow for the first half of the year. The reserve at the end of 2011 is just under 39 percent, slightly lower than the two previous years.
A summary of the 2011 budget shows overall revenue of $61,946 over budget. There was a loss of revenue to the city because of the loss of market value credit from the state.
The city was under budget expenditures by $31,907. From the report, the city was under budget in all departments except for capital outlay and debt service. The over budget portion was because of the purchase of a plow truck, financed by borrowing from the water and sewer fund. The city can save on financing costs in this way.
Transfers out are over budget because of the establishment of a Street Replacement Fund with a transfer of $500,000 from the General Fund.
TIF District 3-1 fund balance had a deficit of $12,884 at the end of December 2010, but at the end of December 2011, the balance was $90,669. As noted by City Administrator Craig Mattson, the city did not levy for this district or collect any value-added taxes in 2004-2006. The fund had a deficit which is being addressed by future levies and transfers.
Water and Sewer funds are financed by user charges. Falteysek recommended annual review of the balances. The city should maintain one-year of operating expenses in reserve in these funds, he said. Depreciation of equipment must also be considered. Reserves have decreased over the past three years because the city has had to fund equipment purchases.
Mattson said future studies will be looking at the base rates of water use.
With the retirement of Fire Chief Dennis Berry effective December 31, 2012, the city is making plans to fill the vacant position.
Council authorized city staff to begin the search to fill a paid on-call Fire Chief in the Wyoming Department of Public Safety. This includes advertising for the position and seeking resumes. Deadline for applications is July 15.
A recommendation is expected to the city council by September 1.
Council awarded a contract for the 2012 crack-fill and seal coat projects to Pearson Bros., Inc. in the amount not-to-exceed $60,000. City Engineer Mark Erichson explained that quotes were sought from three companies, but only two bids were received.
Erichson noted that the work is routine maintenance to preserve pavement. The city budgeted $60,000 for the crack-filling and seal-coat project. The total bid submitted by Pearson Bros. was $102,140.25.
However, city staff will review street projects and select those that can be completed for $60,000. Streets needing work will be selected from Firefly Ave., Fondant Ave., Franklin Ct., 245th Street, 251st Street, Elk Trail, Ethan Ave., 252nd and 253rd Streets and Eureka Ave. The vote was 5-0.
In other business, the council:
•Approved the appointment of Matt Engstrom to the planning commission to complete the unexpired term of Sean Wagner, who recently resigned. The term expires January 2014.
•Learned Peterson Companies have filed an appeal denying annexation to Chisago City. A scheduling conference is set 10 a.m., August 8.
• Learned a demolition permit has been issued to Charles Vogel to raze buildings on his property. The deadline for completion is for early July.
•Approved minutes of the regular meeting for June 19.
•Unanimously approved the minutes of the work session meeting for June 19.
•Learned radios have been transferred to the two new police squad cars.•Learned Ronald Hagle is being held in contempt for violating the clean-up order on his property. The hearing is to be rescheduled.