The Weekly Newspaper serving the citizens of Morenci, Mich., Fayette, Ohio, and surrounding areas.

  • Front.sculpt
    SKEWERS, gumdrops, and marshmallows are all that’s needed to create interesting shapes and designs for Layla McDowell Saturday at Stair District Library’s “Sculptamania!” Open House. The program featuring design games and materials is one part of a larger project funded by a $7,500 Curiosity Creates grant from Disney and the American Library Association. Additional photos are on page 7.
    Morenci marching band members took to the field Friday night dressed for Halloween during the Bulldog’s first playoff game. Morenci fans had a bit of a scare until the fourth quarter when the Bulldogs scored 30 points to leave Lenawee Christian School behind. Whiteford visits Morenci this Friday for the district championship game. From the left is Clayton Borton, Morgan Merillat and James O’Brien.
    DNA PUZZLE—Mitchell Storrs and Wyatt Mohr tackle a puzzle representing the structure of DNA. There’s only one correct way for all the pieces to fit. It’s one of the new materials that can be used in both biology and chemistry classes, said teacher Loretta Cox.
  • Front.tar.wide
    A TRAFFIC control worker stands in the middle of Morenci’s Main Street Tuesday morning, waiting for the next flow of vehicles to be let through from the west. The dusty gravel surface was sealed with a layer of tar, leaving only the application of paint for new striping. The project was completed in conjunction with county road commission work west of Morenci.
  • Front.pull
    JUNIORS Jazmin Smith and Trevor Corkle struggle against a team from the sophomore class Friday during the annual tug of war at the Homecoming Games pep rally. Even the seniors struggled against the sophomores who won the competition. At the main course of the day, the Bulldog football team struggled against Whiteford in a homecoming loss.
    YOUNG soccer players surived a chilly morning Saturday in Morenci’s PTO league. From the left is Emma Cordts, Wayne Corser, Carter and Levi Seitz, Briella York and Drew Joughin. Two more weeks of soccer remain for this season.
  • Front.ropes
    BOWEN BAUMGARTNER of Morenci makes his way across a rope bridge constructed by the Tecumseh Boy Scout troop Sunday at Lake Hudson Recreation Area. The bridge was one of many challenges, displays and games set up for the annual Youth Jamboree by the Michigan DNR. Additional photos on are the back page of this week’s Observer.
  • Front.homecoming Court
    One of four senior candidates will be crowned the fall homecoming queen during half-time of this week’s Morenci-Whiteford football game. In the back row (left to right) is exchange student Kinga Vidor (her escort will be Caylob Alcock), seniors Alli VanBrandt (escorted by Sam Cool), Larissa Elliott (escorted by Clayton Borton), Samantha Wright (escorted by JJ Elarton) and Justis McCowan (escorted by Austin Gilson), and exchange student Rebecca Rosenberger (escorted by Garrett Smith). Front row freshman court member Allie Kaiser (escorted by Anthony Thomas), sophomore Marlee Blaker (escorted by Nate Elarton) and junior Cheyenne Stone (escorted by Dominick Sell).
  • Front.park.lights
    GETTING READY—Jerad Gleckler pounds nails to secure a string of holiday lights on the side of the Wakefield Park concession stand while other members of the Volunteer Club and others hold them in place. The volunteers showed up Sunday afternoon to string lights at the park. The decorating project will continue this Sunday. Denise Walsh is in charge of the effort this year.

Morenci city council receives good audit report 11.12.08

Written by David Green.


Finally, some good financial news for city officials during the annual audit.

Auditor Philip Rubley gave city council a positive review of its budget for the fiscal year ending June 30, 2008. The good news ended deficit problems that arose in previous audits.

“This is the best report you’ve had in long, long time,” Rubley said. “You took a deficit of $32,776 and turned it into an excess of $110,967. You’re making good progress.”

That’s an important step in the right direction, he said, but still short of where he would like to see the city’s financial standing. He recommends a fund balance of 25 percent of the general fund and the current standing puts the city about halfway there.

“You actually reduced your expenditures by $92,410 in one year,” he noted.

Revenues came in at $18,557 more than predicted, creating the fund balance of nearly $111,000.

Looking at state funding—the source of nearly a quarter of the city revenue—Rubley cautioned council to prepare for a “less mode.”

“It’s important to keep [the budget] in shape during these tough times,” Rubley said, “but you’ve done a great job.”

Rubley said the non-major funds were in good shape with the exception of the Town and Country Festival fund. A deficit of $9,000—some from costs in the previous year—will have to be covered by the general fund or another source of revenue.

The Local Streets fund ended with a balance of $59,484; Major Streets ended at $40,018; Fire Equipment at $44,373; and Morenci Area EMS at $26,008.

Utilities funds are often a source of trouble for communities, Rubley said, but Morenci’s shows an income of $102,144.

“You’re covering your costs,” he said. “You’re in good shape.”

The Internal Service fund—showing the costs and usage of city equipment—indicates good utilization.

Rubley said the city follows good accounting practices that give a fair presentation of finances to the public.

The audit’s general comments included a concern about “segregation of duties” in which one person has control over two or more phases of a transaction or accounting function.

That’s due to the small size of the staff, he said, and with the oversight practiced, he doesn’t see the situation as a problem. The only other recourse is to hire another employee.

Rubley also mentioned the city’s fund deposit policy, noting that three-fourths of the city’s bank deposits would be at risk in the case of bank failure. Auditors are required to discuss the issue, he said, and council should remain aware of the situation.

LOANS—Council member Keith Pennington asked Rubley if the city should continue with short-term financing rather than paying off debt. Rubley suggested continuing with financing.

“There’s too much unknown,” he said. “It’s great to pay off debt, but the way things are now, I’d think you’d be better to keep your cash position strong.”

LIBRARY—Library director Colleen Leddy noted that the city’s good financial standing is due in part to the library being required to use about $20,000 of its own funds to pay for expenses last year, due to budget reductions.

“The audit shows that money was given to the library,” she said, “but it doesn’t show that $20,000 came from the library. Will that eventually come back to the library?”

Rubley said that wasn’t a question for him to answer and no answer came from council, either.

CURRENT STANDING—Pennington stated after the meeting that it’s important for taxpayers to remember that the audit gives a picture of city finances at the conclusion of the fiscal year in June.

“It’s not any reflection of where we are today,” he said. “It’s not a correct assumption that those kind of savings will be realized this year.”

The city has incurred some added expenses, such as bringing police officer Frank Cordts back to full-time status, and Pennington estimates that the actual savings available in the current budget year could be half of what was presented by Rubley.

“The good report was a result of the drastic measures the council and the previous administration took to curb expenses,” he said, referring to layoffs and budget-cutting at the library and fire department.

Taking out loans for equipment purchases also helped improve the city’s standing, but at the beginning of the current fiscal year, about $50,000 was still owed.

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