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Audit would probe HRA, liquor store

FAIRMONT — The Fairmont City Council voted 4-1 Monday to move ahead with a state forensic audit covering 17 years in two areas of the city’s books.

After a lengthy discussion, council members decided on a time span from January 2002 to January 2019, focusing on the municipal liquor store and the Housing and Redevelopment Authority, which manages the Burton Lane and Poetter Circle townhouses.

Councilor Ruth Cyphers originally had requested the audit Sept. 9, but the council postponed action to determine a specific time period and compile a list of possible irregularities for the state auditor to probe. Cyphers said she was prompted to request the audit after getting calls from constituents who had questions about the liquor store and HRA finances.

Councilor Wayne Hasek, who cast the lone dissenting vote against the audit, questioned the need for it, citing the annual audit the city undergoes each year.

“I don’t understand it. Why do it again?” he said.

“I would like to hear what we are looking for,” said Councilor Bruce Peters. “Anybody that wants to see the books, they are available.”

At first Peters said he would be unable to vote for the audit because of its potential price tag, not because he feared any discrepancies.

Erik Ordahl of Flaherty & Hood, the city’s interim civil legal counsel, told the council that the state could give an estimate of the cost, but he cautioned that the longer the time period of investigation, the higher the cost will be. He said an amendment could be added requiring council approval after the state offered its cost estimate for the audit.

Turning to another matter, Paul Hoye, city finance director, presented the proposed 2020 budget and property tax levy increase of 12.6 percent, lowered from the initial estimated increase in July of 16.3 percent. The levy increase will raise an additional $600,000 to cover added funds in the city’s street improvement program, debt service on the proposed new street/park building, a part-time rental housing/code enforcement position, for cost-of-living increases and capital improvements.

In other business, the council:

o Authorized Cyphers, Councilor Randy Lubenow and City Administrator Mike Humpal to negotiate a long-term contract with the Martin County Attorney to provide criminal prosecution services for the city. The County Attorney has been working with the city on a six-month short-term basis. Humpal noted that he has sent out requests for proposals to secure long-term legal services for the city’s civil matters. Flaherty & Hood has been providing temporary civil services since May.

o Approved closing Woodland Avenue to automobile traffic from 4:30-7:30 p.m. on Halloween to provide a safe trick-or-treat zone for families. This will be the third year the street has been closed for the festivities.

o Approved an event permit for Fairmont High School’s homecoming parade Oct. 4. The parade begins at 4 p.m. and follows a route from Ward Park through Downtown Plaza.

o Received a request for a $10,000 donation to support programming from Blake Potthoff, executive director of the Fairmont Opera House, the oldest continuously operating opera house in the state.

o Heard a report from Officer Colin Hagert of the Fairmont Police Department about the $13,400 grant for the “Toward Zero Deaths” project that will run through October and focus on traffic safety and reducing distracted driving incidents.

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