MONROE CITY COUNCIL MEETING
NOVEMBER 28, 2017
Notice is hereby given that the Monroe City Council will meet on Tuesday, November 28, 2017 at the Monroe City Hall, 10 North Main Street, which meeting will begin promptly at 7:30 p.m. The agenda will be as follows. The order of business may be changed as time permits.
6:30 p.m. WORK SESSION - KIMBALL AND ROBERTS, CPA, ANNUAL AUDIT REPORT
Mayor Pro tempore Perry Payne welcomed everyone to tonight’s work meeting. He introduced Rick Roberts and Gabe Miller from Kimball and Roberts accounting firm who performed the audit report of Monroe City’s financial statements for the fiscal year 2016-2017.
Present: Mayor Pro tempore Perry Payne. Councilmembers Johnny Parsons, Fran Washburn. City Recorder Emalee H. Curtis. Deputy Recorder Allison H. Leavitt. Treasurer Jacee Barney, Public Works Superintendent Devin Magleby. Rick Roberts and Gabe Miller.
Mayor Kirt Nilsson, Councilmembers Joseph Anderson and Michael Mathie are excused from tonight’s work session and council meeting.
Rick Roberts began by reviewing the report on the financial statements. The audited financial statements of governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of Monroe City, as of the year-end June 30, 2017 are included in this audit report. Also, the related notes to the financial statements which collectively comprise the city’s financial statements as listed in the table of contents. He commented that the financial statements are the responsibility of Monroe City’s management. His firm’s responsibility is to express an opinion on the financial statements based on the audit.
The audit of Monroe City’s financial statements includes compliance with certain provisions of laws, regulations, contracts and grant agreements. The audit was performed in accordance with Government Auditing Standards in considering the city’s internal control over financial reporting and compliance.
Page 5 contains management’s discussion and analysis of the city’s financial activities for the year ending June 30, 2017. The city’s purpose is to provide general services to its residents which includes general government, public safety, highways and public improvements and culture and recreation.
* The assets of the City exceeded its liabilities as of the close of the year by $8,910,690 (net position). Of this amount, $1,114,732 (unrestricted net position) may be used to meet the city’s ongoing obligations to citizens and creditors.
* The city’s total net position decreased by $170,291. The revenues and expenditures for the year were less than the adopted budgeted amounts.
* At the close of the current year, the city’s governmental funds reported ending fund balances of $409,550. This is a decrease of $106,609 in comparison with the prior year. This is due to spending several years of savings for road maintenance. Approximately 16% of this total amount $65,037 is available for spending at the government’s discretion. (Unassigned fund balance)
* At the end of the current year, the unassigned fund balance for the General Fund was $64,037, or 8% of General Fund Expenditures. This amount is within the limits of unassigned general fund balances as required by state law.
* The city’s total debt decreased by a net amount of $208,978 during the current year. This is mainly due to the city’s CIB bond for Mtn. View Park improvements.
Pages 8 and 9 contain information comparing last year’s (2016) to this year’s (2017) net position. For the most part, increases in expenses closely paralleled inflation and growth in the demand for services.
Pages 15 and 19 contain a Statement of Net Position. Gabe Miller reviewed this statement. He explained what restricted cash is and that it is restricted for bond payments, perpetual care, construction, class “C” road expenditures, bond reserves, etc.
Page 20 shows the revenue generated and expenses for each specific category of the different funds. This is the balance sheet for the General Fund, Capital Improvement Fund and nonmajor funds.
The total shown on page 22 are the beginning and ending fund balances.
The next several pages provided financial information on the city’s water, electric, irrigation, sewer anticipation and non-major funds. These are the city’s proprietary funds. The cash goes up and down, depending on the year. Each fund shows an income and expense statement. All of the city’s funds are in a positive position and spending was within budgeted limitations.
The city’s debt and amortization schedules were summarized on page 48. The final budget of each fund was in compliance with all requirements.
There was a brief discussion concerning compensated absences and the city’s personnel policy regarding payment of accrued leave upon retirement. The auditors said that they again are expressing a concern with the policy and the amount of funds that would be required to be paid out upon any long-term employee’s retirement. The city council will take a close look at this policy.
Comments were made that recent rate increases in the electric fund should help in building up a reserve/emergency fund in this department.
Rick Roberts then said that Monroe City’s compliance and internal controls were used to assess potential risk of fraud. They found no instances of material deficiencies and that employees are mindful of the controls that are in place.
The Letter to Management, regarding the internal control system of the city was next to be reported. The report states that there were no material findings of non-compliance, but the auditors noted certain circumstances, that if improved, would strengthen the city’s accounting system and control over its assets. The letter to management recommended that purchase orders should be pre-approved and authorization by signature of the department head prior to payment for all purchases over $1,000. It has been the city’s practice in the past, that councilmembers sign the warrant register and cash disbursements journal showing their approval of payments to vendors. The auditors are recommending signed pre-approval prior to payment. The auditors felt that this should be mentioned and addressed to avoid any problems in the future.
In the future, the Deputy Recorder or the Recorder and Treasurer will communicate to authorized purchasers the need for written authorization for any purchase over $1,000. Deputy Recorder Leavitt has prepared an authorization form to be attached to invoices over $1,000 that will be signed by the councilmember department head prior to payment.
Councilmembers thanked Mr. Roberts and Mr. Miller for their thorough and professional audit of Monroe City’s financial statements and required policies and procedures. Appreciation was also expressed for their review of the report at tonight’s work meeting.
1. Mayor Pro tempore Perry Payne conducting
The regular meeting of the Monroe City Council was called to order at 7:31 p.m. by Mayor Pro tempore Perry Payne. The Pledge of Allegiance was led by Councilmember Johnny Parsons. Prayer was offered by Mayor Pro tempore Perry Payne.
Mayor Pro tempore Perry Payne
Mayor R. Kirt Nilsson, Councilmembers Joseph Anderson and Michael Mathie were excused from tonight’s meetings.
City Recorder Emalee H. Curtis
Deputy Recorder Allison H. Leavitt
Treasurer Jacee Barney
Public Works Devin Magleby
Deputy Greg Northrup
Approval of minutes of previous meeting:
Councilmember Fran Washburn moved to approve the minutes of the November 14, 2017 city council meeting as corrected. Motion seconded by Councilmember Johnny Parsons. All were in favor. Motion passed. Corrections: Page 2 – remove the duplicate wording. Page 5 – complete the incomplete sentence
2. Citizen input
There were no citizen comments tonight.
A. Planning commission recommendation- conditional use business license for Center Stage Dance Academy submitted by Diedre Jenkins for a new location at 480 South 100 East.
A conditional use business license was previously approved at a different address. The planning commission is recommending that this new location for Diedre’s dance studio be approved by the city council. Councilmember Parsons moved to approve a conditional use business license for Diedre Jenkins’s Center Stage Dance Academy to be located at 480 South 100 East. Motion seconded by Councilmember Washburn. Voting for the motion: Councilmembers Parsons, Washburn, Payne. All were in favor. Motion passed.
B. Camden Larsen - Proposed Eagle Scout Community Project.
Camden met with the city council. He distributed information on his idea for his Eagle Scout project. He would like to construct a water fountain at the city’s fishing pond. He feels that this project would be a benefit to the community. He is asking the council’s permission to construct this project.
Public Works Superintendent Devin Magleby commented that culinary water is not available in this area. The property with the fishing pond is at a higher elevation than the water storage tanks. The city would have to build a water line and then pump culinary water to that area for a public drinking water fountain.
There was further discussion about how the city might deliver culinary water to the pond site for a drinking water fountain.. The city doesn’t want to dig up any asphalt to install a water line. Concern was also expressed regarding the cost to install a pump and maintain it. The council instructed Devin to research the feasibility of delivering culinary water to the proposed fountain site and to check with the department of water quality as to what their requirements would be.
C. Dave Coe - Red Hill possibilities
Mr. Coe asked if the city might consider selling the city’s Red Hill property. Councilmember Payne voiced his opposition to selling this city property. The council informed Mr. Coe again that this property is already leased and that the city does not own the water rights. The city, at this time, does not have any plans to sell this land that was donated to the city.
If the council determines that they are in agreement to sell this property, the council must declare it surplus property and advertise it for sale to the general public. There are state requirements that would have to be followed in order to sell any property owned by the city.
Mr. Coe then informed the council that he has listed the old creamery building on North Main Street for sale. He handed out copies of the plat showing the property lines of this parcel of land. A prospective purchaser may want to divide the property and sell the west portion as a building lot. The prospective purchaser would use the creamery building for light manufacturing. The council said that the only problem they could see was if there was enough area for a septic tank on a newly created building lot, since the property line appears to be in the middle of the canal.
The council asked that when the property is sold, the property owner submit what he might be planning as far as dividing the property and future use of the property.
D. Acceptance of Monroe City 2016-2017 Annual Audited Financial Statements
Councilmember Washburn moved to accept the 2016-2017 annual audited financial report as presented to the council at a work meeting held earlier tonight. Motion seconded by Councilmember Parsons. Voting for the motion Councilmembers: Washburn, Parsons, Payne. All were in favor. Motion passed.
The audit report will be submitted to the State of Utah Office of the State Auditor.
4. Staff Reports
Monroe City Traditional Holiday Tree Lighting/Santa event.
Councilmembers and Mr. Coe finalized plans for the annual tree lighting and visit with Santa which will be on Monday, December 4, 2017 beginning at 5:30 p.m. Members of the council were requested to be at the city park by 5:15 to prepare for the Holiday Kick-off. Final details will be worked out with Allison, Devin and Dave Coe.
Councilmember Payne reported that an individual has volunteered to judge this year’s Christmas Lights contest.
Councilmembers were reminded of the December City Council meeting schedule. The council will meet only once in December. That meeting will be held December 5th. The next regular council meeting will be January 9, 2018 at which time the newly elected mayor and members of the city council will receive the oath of office.
5. Department Business - reports and concerns - law enforcement concerns
Councilmember Joseph Anderson-Streets Department-Weeds - Equipment -Youth Council
* Councilmember Anderson asked to be excused from tonight’s council meeting.
Councilmember Perry Payne - Electric - Mosquito Abatement - Utility Board
* No new business tonight.
Councilmember Fran Washburn - Parks - Library - Sr. Citizens
* Jacee was asked to contact Allen Oscarson to schedule a tree committee meeting.
* Councilmember Washburn thanked city crews for changing out the lights at the Sr. Center.
Councilmember Johnny Parsons - Water - Irrigation - Wastewater - Fire Department
* The 300 East culinary water line project is just about finished. Cleaning up driveways and cleaning along the roadways should finish this project. Devin would like to straighten out the road and take care of some waterways with culverts before the crews call the project finished.
Councilmember Michael Mathie-Cemetery-CERT-EMS-Landfill-Garbage-Planning Commission
* Councilmember Mathie is unable to attend tonight’s council meeting. He is excused.
Mayor R. Kirt Nilsson - General Administration
* Mayor Nilsson is excused from tonight’s council meeting. He is out of town.
Officer Greg Northrup reported that the Sheriff’s Department is staying busy. There are no new law enforcement problems in Monroe that he is aware of.
Councilmember Johnny Parsons moved to adjourn at 8:10 p.m. Motion seconded by Councilmember Fran Washburn. All were in favor. Meeting adjourned.
Approved this 9th day of January, 2017
Emalee H. Curtis
Monroe City Recorder