03/15/1999-CC-Minutes-Work SessionMINUTES: CITY COUNCIL WORKSHOP
MARCH 15, 1999
PRESENT: Mayor Tommy Kincaid, Councilwoman Alice Madden, Councilman Jerry
Jenkins, Councilman Glenn Ervin, Councilman Carroll McNeill, Councilman
Mike James.
OTHERS
PRESENT: City Administrator Jack Smith, City Secretary Rose Chavez, Auditor Bill
Spore
1. Mayor Called Meeting to Order.
2. Discuss Fiscal Year End Audit for 1997-1998.
Bill Spore proceeded with discussion on FY Audit 97-98.
Mr. Spore indicated the copy he gave the Council was a draft copy because they are
going to consider amending the budget.
Mr. Spore indicated
the Audit is on an
accrual basis,
and added that items under
construction will not
begin
to depreciate
until they are
completed.
Mr. Spore indicated that the City's assets had increased, and that the City had a
strong financial year, the bank balances are higher, and they own more equipment
this year.
Mr. Spore addressed the Combined Balance Sheet -all funds and account groups, and
proceeded with discussion on the combined statement of revenues, expenditures, and
changes in balances in the General Fund. He discussed the Retained earnings in the
Proprietary Fund.
Mr. Spore followed with discussion regarding the schedule of changes in the General
fixed assets followed by the changes in Property, Plant, and Equipment in the
Enterprise Fund.
Mr. Spore gave a brief summary on the long term debt, and the Debt service
requirements in the General Fund and the Enterprise Fund.
Mr. Spore went over his analysis of Taxes Receivable.
Mr. Spore then addressed the proposed amendments to the 97/98 budget:
In the Administration Department the original budget for Capital Outlay was
$6,000.00, the amended budget will be $42,750.00. The original budget for
Equipment Lease was $0.00, the amended budget will be $6,650.00 for a total increase
of $43,400.00 in the Administration Department.
In the Sanitation Department the original budget for contract service was $190,000.00,
the amended budget will be $240,000.00, a total increase of $50,000.00 in the
Sanitation Department.
The total increase in budgeted expenditures is $93,400.00 for the General Fund.
no a
r to balance expenditures they will increase the following budgeted revenues:
Lease Proceeds was originally budgeted at $0.00, the amended budget will be
$36,750.00.
Page 1
Franchise Tax Fees was originally budgeted at $105,000.00, the amended budget will
be $111,650.00.
Solid Waste Collection was originally budgeted at $209,300.00, the amended budget
will be $259,300.00.
The total increase in budgeted revenues is $93,400.00 for the General Fund.
In Wastewater Treatment, Repairs -Other was originally budgeted at $350.00, the
amended budget will be $11,600.00, and TNRCC Fine was originally budgeted at
$0.00, and the amended budget will be for $12,500.00 for a total increase of
$23,750.00 in Wastewater Treatment.
In the Electric Department, Power Purchased was originally budgeted at
$1,385,000.00, the amended budget will be $1,597,000.00.
The total increase in budget expenditures is $235,750.00 in the Utility Fund.
In order to balance expenditures they will increase the following budgeted revenues:
Wastewater Treatment was originally budgeted at $379,400.00, the amended budget
will be $403,150.00 for an increase of $23,750.00.
Electric Revenues were originally budgeted at $2,430,000.00, the amended budget will
be $2,642,000 for an increase of $212,000.000
The total increase in budget revenues is $235,75000 in the Utility Fund.
Mr. Spore proceeded to summarize his management letter to the Mayor and City
Council. He indicated the City should consider hiring a professional bookkeeper to
help Rose, that person can be responsible for learning all jobs in the accounting area,
and help see that things are done timely.
Discussed Salary for a bookkeeper, Mr. Spore indicated it should not be more than
$30,000.00.
Mr. Spore concluded by discussing the budget amendments, and indicated by
amending the budget, from the audit standpoint, it allows the auditor not to put in the
footnotes why the accounts were over budget, in amending the budget it eliminates his
footnotes. Mr. Spore indicated that expenses can be justified as long as the revenues
are there for the expenditures.
Mr. Spore indicated again that this was a very good year.
Councilman McNeill expressed concerns regarding inventory, and who would be
responsible.
Discussion Followed.
3. Meeting Adjourned.
ATTES �„
Rosalie Chavez, City Secretary