02 City Council Min 3-14-05 - Laserfiche WebLink

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Regular City Council Meeting March 14, 2005 Page 9 They were proved to be unfounded through videotape recordings or court testimony. 8.Discuss, consider, and review the City Audit for Fiscal Year 2003-2004. Councilman Wilson stated that the budget is based on cash basis and the audit is based on a modified accrual and on full accrual. It is difficult to tie the two together. At the end of the year on September 30, 2004, we had a total of $254,000.00 in cash without the bond money. He stressed the point is that we had spent $5,000,837,000.00 in reserves that we had, and that we have no more reserves. Councilman Wilson asked Gene Anderson if we had dipped into our bond money over the in October, November or December. Gene Anderson stated that we did dip into the construction money. Councilman Wilson wanted to know how much we dipped into it. Gene did not bring the numbers with him, but advised the Council that up through December we had collected only 20% of our property tax revenue, so we dipped into that money up through the end of December. In January we collected 50% of total taxes and it brought us back up above that amount. Mayor Fendley inquired as to if that money was back in the account for construction and Gene Anderson advised that it was back in the account. Councilman Wilson wants Gene to work with Tony in the future, so that he can provide a summary showing cash wise of where we stand. 9.Discuss, consider and provide direction or take possible action regarding the City Manager’s personnel and financial proposals. Tony Williams stated that after looking at the Audit, it is clear the problem is that we have too much government for the size of the community. Our standard operating expenses exceed our revenue. It is not the capital items - it is the day to day expenses that will not balance. Tony stated he was available to answer any questions they may have regarding what he has proposed or how he arrived at the recommendations. Mayor Fendley asked if any council members had any questions of Tony or input. Councilman Wilson said he could go along with most of the changes proposed but had concerns with changes in EMS. He stated we have spent a lot of time training these people. He thinks we have gotten in a position where it doesn’t matter whether or not it is necessary, because the citizens have come to expect two paramedics. Unlike other departments, EMS’ cost has gone up 58% but their billings are up 58% and their revenues are up 50%. They grew in the last five years from 20 to 26 employees but their services grew too.