Jane McWilliams, LWV Observer
The full council was present for the 2007 Audit Review presented by two members of the HLB Tautges Redpath, LTD. Firm, David J. Mol and David Blumberg. This firm has performed the audit for the city for the past 4 years. The audit costs around $35,000 and takes 350-400 consultant hours. (No precise figure as to how much city staff time is involved.) Annual audits are required, and are done according to state statutes.
Usually completed June 30, this year’s audit was delayed for a number of reasons. Finance Director Kathleen McBride noted that coordinating audit work and daily and weekly finance operations is challenging. In order for information to be ready for the auditors in the future, the amount of additional projects or assignments should be limited. In the time this firm has worked with the city, finance department staff and internal process changes, as well as recent software changes, have made the work challenging. She predicts that the next audit should be smoother for all concerned. Although there is no requirement to that effect, cities customarily “rotate” audit firms about every 5 years. McBride recommends that the city stay with this firm for at least the next audit. The audit report is available at:
The council then reviewed the city’s General Fund budget, the primary operating fund which includes general administration, public safety, public works, parks and recreation and the library In each budget category, the staff laid out a description and purpose of the activity, accomplishments and highlights of the current year, and initiatives planned for 2009. A table showing the expenditures for each category as well a short history of personnel numbers were presented. Mayor Lee Lansing complemented staff on the presentation which he said was “so much better and clearer than my first year on the council.” The document from which they were working is available at:
In order to reduce the initial anticipated shortfall of $800,000, a number of changes have been made on both the income and the expenditure sides with the result, a $55,840 shortfall. Councilman Jim Pokorney suggested that staff give the council options for further reductions. Interim City Administrator Joel Walinski said staff would need direction prior to that discussion. Councilman Dixon Bond said they should take an early look at the tax rate and then decide which changes need to be made, whether additional cuts or an increase in taxes is warranted. McBride said there would be an October work session on the tax rate and calculation of the implications for various properties. Walinski reported there will be four more work sessions on the full budget before the council adopts it in December.
