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02-20-1979 - Workshop / (.) o II,' ffj~ ftJ ,~ II ;~J.'-ij ~.. '... ~ I:. . "!j':;'/tj" - .....;;~ '.{'!~';ltJ.!"'Jr'1Jli hE', ,''1' 1rJi!)l' ~r . p} ~ !: t: f:I : if, . CITY OF EDGEWATER CITY COUNCIL WORKSHOP MEETING FEBRUARY 20, 1979 Mayor Christy called the Workshop meeting to order at 6:42 P.M. in the Edgewater City Hall. ROLL CALL: t/1ayor Christy Councilman Rotundo Councilman Ledbetter Councilman Sikes Councilman Asting City Attorney Woods Police Chief Baugh City Clerk John Wharton Present Present Present Present Present Excused Present Present Also present: John Vodenicker, May Zima & Company Earl Copeland, Street Superintendent Mr. Vodenicker was given the floor and he stated that the reason he asked that this workshop be called is because we have some new Council members who were not here when we got involved with the computer system and he thought that everyone should be brought up to date with where we are in the operation. He also wants to go over the January 31, 1978 financial statement,with the Council. He started with the last fiscal year by going over what the City's operation was at that time. He explained that the City was keeping record of all of their accounts manually, in general journals, disbursement journals and ledgers and they had two NCR posting machines which they were doing their utility billing on. He explained that we were seeing a considerable increase in the ser- vice customers and each year a number of transactions were in- creasing in the City. The time involved with the manual type system, wherein the computer is doing all of that now, and we can go into the areas and tighten up the control which you really didn't have the opportunity to do before. He explained that in February of 1978 the first phase was put into the computer, which was the utility billing. He stated that before this was done, the girls running the posting machines were having to work overtime to get all of the bills out. Now this is being done in a lot less time, and therefore saving the City some in the area of overtime. The second phase was put in in October of 1978, which was the general ledger, the accounts payable, cash disbursements and cash receipts. He briefly explained how this system operates, also going over the results which are shown on the monthly budget report. (copies of which the Council members had to look at) At this time Mr. Vodenicker and Mr. Wharton answered some questions from the Council about the way the accounts payable system operates. They specifically questioned if a certain bill was not approved to pay after it had been input into the system, could it be held out? It was explained that this can be done and the bill or bills could be held by changing the due date until the time the Council wished to pay it. I I I J 4 .' Q o There was some discussion about a particular Briley, Wild bill. Mr. Wharton tried to explain exactly what happened in this case, because this bill was not input into the system, it had to do with the Fm.H.A. bills that he was getting approval on. Mr. Vodenicker said that there is something that the Council has to make a decision on and that is at what point do you want to record your accounts payable. It seems as though this is being handled as a cash basis budget; you are only putting the bills into accounts payable when you want to pay the bills and you have another stack of bills that you don't want to pay, so you are keeping them in a file. They are not being entered as expenditures when they come in. Councilman Asting explained to Mr. Vodenicker that these bills that we are talking about are being paid out of a loan from which we draw on as we need it. Councilman Sikes stated that these should be recorded anyway when they come in so that we can keep track of them. Councilman Asting explained that Mr. Wharton has been keeping up with this on a spread sheet. There was discussion among the Council at this time about the loan that we have with F.H.A. Mr. Wharton stated that we don't have an open accounts payable like we use to where when they are paid we mark them off and we can see what we have open. Mr. Vodenicker stated that he wants to get this taken care of. There was discussion about budgeted items at this time. Mr. Vodenicker explained that the monies involved with the F.H.A. is going through the computer, it is just not going through the normal channels. It's going through the general journal entries. Councilman Sikes asked where would they look to find out what is due to us from Federal Revenue, or State, or Police Benevo- lence Fund. Mr. Vodenicker stated that he wanted to go over all of the state- ments tonight. He showed the Council where they could look for the information that Councilman Sikes is asking about. (Statement of Revenues and Transfers) He answered various questions from the Council in regard to these statements. Councilman Sikes had a question about when the City Clerk could certify funds available in the Federal Revenue Fund. Mr. Wharton explained that in the case of the police cars, even though the money was earmarked for that; he did not certify that at the time because the equity in the Federal Sharing Fund was not enough; we hadn't collected enough yet to spend that money. Councilman Sikes asked Mr. Vodenicker for some clarification on this, because in our budget we have allowed so much of our Federal Revenue monies to go toward paying for certain things. Although we haven1t actually collected the money yet, can he certify it? -2- u Q Mr. Vodenicker recommended that they be prudent in keeping the integrity of each one of those equities in pool. If the funds have not been collected to cover an expenditure, he would not recommend spending it, or borrowing from other accounts to use. There was more discussion about what the Federal Revenue monies are to be used for and how it was budgeted. Mr. Wharton went over the different expenditures that have been made from this fund so far. Mr. Vodenicker stated that he would like to go on with the reports. In the General Fund; at the end of each month, you get a PR4, which is basically a balance sheet and a summary of your budgetary statements. He explained the make up of this report. Mr. Wharton stated that this summary plus the equities of all the other pools will come out to the reconciliation with the bank. Mr. Vodenicker explained that this gives you an overall summary on two pages. The first page is the revenue source and the second page divides it by departments. He gave a detailed des- cription of the report to the Council. There was discussion about the budget. Councilman Sikes stated that as long as we don't exceed the $164,627 which is the line item for General Government Service, then we don't have to have a public hearing. Mr. Vodenicker recommended that the budgetary control that the Council look at be the department level. Councilman Sikes asked if we need to go back before the year is out and adjust our budget as long as we stay within the $164,000 for General Government Services, do we need to adjust for various line items? Mr. Vodenicker stated that he thinks that about six months down the road, the Council may like to review the whole budget. He added that you can go until the end of the year just watching the budget closely each month. Mr. Vodenicker went on to another report, the PR6, and explained that it is in more detail and gives every account that revenues are classified to. It shows that you are running about 37% col- lected already. He explained to the Council the areas that this money has been collected in, also showing that some of the areas have not had any money collected in yet, which will still come in. He answered some questions about investing the funds as they come in. At this time there was some discussion about the investing of funds that the City has or that comes in. Mr. Vodenicker answered some questions in regard to the terms of the investments. Mr. Vodenicker went on to the expenditures. Right now the City has expended approximately 41% of the total budget for the year. He went down the departments showing where the expenditures have been made. The end results of Fund 10 (General Fund) being that the budget was set at $830,673 and the City has spent to date $246,309, which is 29.65% of the budget. Going on to Fund 40 (Water & Wastewater); on the revenue, you budgeted $508,000 and you have collected $158,131, which is 31% of the total budget, which is a little under what was anti- cipated. He went over the areas that this money has been collected and showed also the areas that have not had the money collected yet. There was some discussion on this. Mr. Vodenicker stated that he would like to explain to the Council, while we are discussing the Water and Wastewater, that you are going to be able to do a rate -3- ~ ~ u u analysis as of June 30th of all of your water for the last twelve months. When you want to sibly discuss increasing your rates, you will determine what your income would be. and sewer customers sit down and pos- have a basis to There was discussion about reducing the rates, specifically the impact fees. Mr. Vodenicker went on to the expenditures in the Utility Services. He stated that the Water Department is right around 29%, the Sewer Department is 31%, both of which are in good shape. Mr. Vodenicker stated that the Sinking Fund is in good shape also. You are right on target with your transfers. Mr. Vodenicker stated that the Capital Improvement Fund should be watched. There was $125,000 budgeted in that fund and you have spent $69,000 already. The Council discussed some recent expenditures that will be charged to this fund, and what revenues come into this fund. Mr.Vodenicker explained how this operates by transfers and answered some questions from the Council. Mr. Wharton asked Mr. Vodenicker about the process by which a transfer is made from one fund to another. Mr. Vodenicker ex- plained that this is handled by a journal entry. Councilman Asting stated that we need to get this done in order to purchase the recarbonation unit. There was further discussion about this and the budgeted figures that we will be working with to do the transfer. The Council got into a discussion about the operations at the Water and Wastewater Departments and the condition of the sewer lines, in order to try to determine how much money needs to be transferred. Mr. Vodenicker stated that the Refuse Fund (47) stands now with $48,000 in it. This is a fund all of its own. The."revenue budgeted is $103,355, which is running at 35% now. There was discussion about some revenue that has been collected already in this fund. The Council also discussed the contract that we had with Tomoka Refuse and how it was handled. Mayor Christy stated that the City is now picking up the garbage. When they pick up extra amounts of trash a fee is collected, where does this money go? Mr. Wharton explained that this goes under miscellaneous income. Mayor Christy also wanted to know where the money for the culverts goes? He understands that this money is just going into the General Government, instead of going into the fund that it should be going into. There was further discussion on this. Earl Copeland answered questions about how many culverts are being put in and the cost of the pipe for each. It was explained that this money is going back in where it has to go. -4- Q (.) Back to the Refuse Fund, Mr. Vodenicker stated that you have one month in the report as handling it yourselves and three months under the contract. You have collected so far $36,396 and you have expensed $28,638, so you have accumulated a profit. To this you can add a surplus that was left from the prior year. There was discussion among the Council at this time about what we should do about the garbage and trash as far as dumping it, recycling or whatever. Mr. Vodenicker stated that it is beginning to be the trend and it may be a good idea to get a group together in this part of the County and put together a feasibility study and perhaps get a bond. There was more discussion about this and also about the limitations on municipalities in regard to borrowing money. Mr. Vodenicker stated that there are two things that the Council should be looking at. First you should be concerned about the cash that you have in each of these funds; your ability to meet your obligations when they become due. The other thing is how you stand with your budget. There was discussion again about the garbage collection operation and its cost to the City. The Council asked the City Clerk if he would get them lists of the various funds with their corresponding numbers. ADJOURN: Councilman Sikes made a motion to adjourn, being seconded by Councilman Asting. Said motion CARRIED. MINUTES TAKEN BY: John Wharton Debbie Sigler -5-