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CEYLON -- The Ceylon City Council met on Tuesday night for its April meeting. Greg Burkhardt from the Burkhardt & Burkhardt ltd. made a report.
Burkhardt explained the responsibilities of the City and the auditors including accounting decisions and policy procedures for the city, and financial opinion, internal control and state compliances for the auditors.
The City received an unmodified opinion, which is a clean audit. Burkhardt praised Clerk Treasurer Mary Muller for her accurate support for the auditors. He mentioned some evidence that may need some attention.
The Fire Department Relief Association pension plan is not on the City financials. This has been a practice of the City for years and is not illegal or concerning. The plan has an audit once a year. The only way that it would affect the City is if the City would have to bail out the fire department.
There were material weakness and transaction concerns but that is mostly because it is a small town and small office personnel. The concerns were about the deposit of public funds and the city reviews the banks need for collateral. The other concerns were public indebtedness, which is reported by Feb. 1 of each year, this year has been different because of the Broadband and new road situations.
There also was a conflict of interest concern when a council member was contracted to the city for work. An affidavit from the council member and a unanimous approval by the council is always done in those cases. Most of the adjustments were corrections by the auditors for small amounts except for four that were larger.
The City will need a single audit for the broadband payment for locating underground wires and pipes. Help for this expense is on-going right now.
The auditor explained that the General Fund is doing well and the reserve is much above the state's mandate which would be how many days a city can last if no income, Ceylon has more than a year reserve.
The revenue is over budget the expenses are a little over, so it works out and the fund balance is in good shape.
Business funds like the water and electric funds should operate in the black. Cash flow from the operations can be bonds payments, repair and infrastructure. Usually property tax levy is used to help the Cash Flow.
He repeated his advice to increase the utility rates but understood the Council's reluctance to do so in the small city and so far it is doing well. The Council will keep that option in reserve if needed.
He summarized the report saying the City is doing fine and to keep up the balance of revenue and expenses. The Council asked his advice in the matter of transferring the CDs from a small interest to a larger interest facility to earn more for the city. He gave some examples and will advise the Council about options they may have.
The City should look at different options and keep the time length and interest and diversity in mind.
In further reports, the City works employee reported that there will be a meeting with the county and a list of the items not finished when the new road was done will be reviewed.
The City Clerk asked about checking out her computer which has been concerning her lately. The Council approved.
The Council reports asked about dividing the city in fourths and each council being responsible for checking out the ordinance violators in a quarter and reporting back to council.
It was mentioned that the ones now on report should be continued for clean up also.
The Fire Association meeting report included that two firefighters went to training lately and that two firefighters are applying for work with the Ceylon Fire Department. Helmets and a thermal camera have been ordered. The Department has been trying to recover some unpaid bills lately.
There were two public comments/questions brought up at the meeting. One was about the dangerous intersection by north West Street and the snow being plowed there. After some discussion the City will measure the boulevard to insure the resident which part is the city property and which is hers. The unprecedented snow amount this year was mentioned and patience and cooperation from all parties was asked.
The second question was a request to use the old library part of the old city hall building for meetings and events for the local non-profit Helping Hands of Ceylon.
After discussion the Council suggested they use the Shelter House at the park for the summer and the City will look into what is stored in the old city hall building and how much room there is. They reminded the non-profit members that there had to be liability insurance, rent and utilities paid and safety concerns addressed. To use the shelter house they must contact the city employee or clerk. The matter was tabled for now.
In other news, the council:
-- Approved a rate increase for electricity.
-- Did not approve a request to close the street west of the Lake Belt Bar and Grill on Community Day.
-- Approved the Clean Up Day for June 10 with curbside pick-up only available. The City Hall will sell tags for $10 and items should not exceed the amount that would fit in the back of a pickup.
-- Approved a bill from Watson Electric for $5,785 for filtration plant repair. The lift station will be calibrated this week.
The next meeting of the Ceylon City Council is scheduled for May 9 at 6 p.m. at the City Hall.