Morenci city council 1.16

Written by David Green.

There’s a lot to like in the City of Morenci’s financial picture, said auditor Philip Rubley, but for the third year in a row there’s a deficit in the general fund.

“That’s the bad news of the night,” Rubley said before giving positive reports on other aspects of the city budget.

“You reduced the budget by about $18,000 in the last two years,” he said, “so you’re headed in the right direction.”

Rubley’s audit for the year ending June 30, 2007, found a deficit of $32,776. The city will be required to submit a deficit reduction plan to the state.

Council member Keith Pennington hinted that the situation has improved in the past six months.

“This report is for our fiscal year,” he said. “It does not account for anything we’ve done since June 30.”

The deficit reduction plan should make note of changes since that time, Rubley said.

Rubley noted that 28 percent of the city’s revenue comes from state funds—a figure that varies with the economy.

“I would anticipate that number to go down,” he said. “With costs soaring and revenue decreasing, you’re going to have to really watch it carefully. These are tough times, very tough.”

Rubley was pleased with the condition of the two street funds, particularly the local street fund, the utilities fund and the internal service fund (DPW).

“All of them are in pretty good shape except the general fund,” he said. “That’s the hardest one to get revenue into.”

Rubley gave the city an “unqualified opinion,” the highest rating possible for accounting practices.

He gave council a list of nine comments for consideration, none of which were listed as significant deficiencies. One significant problem is labeled as segregation of duties.

He explained this by saying that no single individual should have control over two or more phases of a financial transaction or operation. Because of the layoff of Suzette Burk last May, the separation of duties between clerk and treasurer no longer exists.

“I’m not saying there’s a problem,” Rubley said. “There’s a potential for a problem. You’ll have to take a closer look at checks and balances.”

He added that he thinks controls are in place to avoid “material problems.”

 

  • Front.cross
    HUDSON RUNNER Jacob Morgan looks toward the top of the hill with dismay during the tough finish at Harrison Lake State Park. Fayette runner Jacob Garrow focuses on the summit, also, during the Eagle Invitational cross country run Saturday morning. Continuing rain and drizzle made the course even more challenging. Results of the race are in this week’s Observer.
  • Front.bear
    HOLDEN HUTCHISON gives a hug to a black bear cub—the product of a taxidermist’s skills—at the Michigan DNR’s Great Youth Jamboree. The event on Sunday marked the fourth year of the Jamboree. Additional photos are on page 12.
  • Front.crossing
    Crossing over—Jim Heiney was given a U.S. flag to carry by George Vereecke (behind Jim in the hat), turning him into the leader of the parade. Bridge Walk participants cross over Bean Creek while, in the background, members of the Morenci Legion Riders cross the main traffic bridge on East Street South. Additional photos appear on the back page of this week’s Observer.
  • Front.hose Testing
    HOSE safety—The FireCatt hose testing company from Troy put Morenci Fire Department hose to the test Monday morning when Mill Street was closed to traffic. The company also checks nozzles and ladders for wear in an effort to keep fire fighters safe while on calls.
  • Front.starting
    BIKE-A-THON—Children in Morenci’s Summer Recreation Program brought their bikes last Tuesday to participate in a bike-a-thon. Riders await the start of the event at the elementary school before being led on a course through town by organizer Leonie Leahy.
  • Front.train
    WRECKAGE—Morenci Fire Department member Taylor Schisler walks past the smoking wreckage of a semi-truck tractor on the north side of the Norfolk and Southern Railroad tracks on Ranger Highway. The truck trailer was on the south side of the tracks

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