Morenci city council audit report 11.11.09

Written by David Green.

By DAVID GREEN

Despite the rough economic times in the state, Morenci city council received good news Monday night from auditor Phil Rubley.

For the second year in a row, Rubley lauded the city’s progress in moving away from the deficit situation of the past and once again posting solid financial gains.

Rubley noted that the projected fund balance was exceed by nearly $50,000.

“You’ve taken the city from a very fragile fund equity and built on it,” he said. “That’s very good. You should be proud of yourselves.”

Rubley said he would like to see a much higher cash balance. He recommends having three months of expenses available, which would require a balance of at least $250,000. The audit showed that as of June 30, the fund balance stood at $154,870.

The sale of property for a cellular communications tower brought in an unexpected influx of $65,000 to help bolster the city’s financial situation.

Rubley reviewed the various major and non-major funds and pronounced them all in good shape with the exception of the Town and Country Festival fund.

Revenue produced an excess of $7,864, but a beginning deficit of $9,046 left the fund in the red.

City administrator/clerk Renée Schroeder said that fund-raising efforts have covered the shortfall since the fiscal year ended.

Rubley said the audit led to an unqualified opinion, meaning the records were all in order and fairly presented.

“You should be commended for that,” he said. “You have a very good report and a very good financial position.”

Rubley cautioned council again this year about the “custodial risk” of investing funds that aren’t entirely insured. By placing funds in only two banks, a large amount of money exceeds the $250,000 federal insurance limit.

Banks are failing across the country, he noted, and to protect savings, council should consider moving some long-term CDs to other locations.

LEAVES—Leaf collection got underway this week, said city supervisor Barney Vanderpool. He’s been short of help and collection was delayed. After work along Main Street, DPW workers will begin collecting on the south side of town.

FIRE—Joshua Oltz was approved as a new member of the fire department and the wording was read on a plaque presented to the department from the Rohr family.

POLICE—Council approved hiring Richard Dover as a part-time police officer.

Police chief Larry Weeks told council about the availability of two Michigan State Police troopers who specialize in crime scene investigation.

Their skills will provide an extremely valuable service to Morenci and other smaller communities, the chief said.

Weeks told council that the new police cruiser is in service. The car is painted white and has new graphics that were designed by Simi Air. The vehicle cost about $18,000 through a state bidding process.

NEW ASSIGNMENTS—New mayor Keith Pennington announced the following committee assignments:

• Public Safety—Tracy Schell (chair), Joe Varga (vice chair) and Leasa Slocum.

• Public Works—Art Erbskorn (chair), Jason Cook (vice chair) and Varga.

• Finance and Legal and Economic Development—Greg Braun (chair), Slocum (vice chair) and Cook.

He named Schell as mayor pro tempore.

Robert Jennings and Brenda Spiess were appointed to fill two planning commission vacancies.

Pennington made no changes in the department heads.

He reminded the audience that the mayor leads the meetings, but other than that the position is mostly symbolic. The mayor gets one vote like all council members have.

He also pointed out that the mayor is not the head of the fire department, police department, etc., and any decisions must be made by the entire council only at a meeting that was announced in advance.

Pennington said that public comment about items on the agenda should be made at the start of the meeting. According to Robert’s Rules of Order, he said, only council members should discuss an issue while moving through the agenda.

The traditional agenda item seeking concerns and questions from the audience will remain as the final order of business before adjourning.

  • Homecoming Court
    HOMECOMING—One senior candidate will be chosen Morenci’s fall homecoming queen during half-time ceremonies Friday at the football field. In the back row are seniors Mikayla Price, who will be escorted by Mason Vaughn; Madison Bachman, escorted by Kiegan Merillat, and Mikayla Reinke, escorted by Griffin Grieder. Senior Ariana Roseman is absent from the photo. Her escort is Garrett Smith. In the front is sophomore Abbie White, who will be escorted by Ryder Price; junior Madysen Schmitz, escorted by Harley McCaskey and freshman Madison Keller, escorted by Jarett Cook.
  • 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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