HomeMy WebLinkAboutBudget/Finance Committee Minutes 12.01.1998 MINUTES
BUDGET/FINANCE COMMITTEE
DECEMBER 1, 1998 4:30 P.M.
OLD COURT ROOM
MEMBERS PRESENT:
Chairman Bud Johnson
Gay Easton
Chuck Rodgers
Gary Temple
Ken Olson
Don Hackmann
OTHERS PRESENT:
Larry McCann
The committee reviewed the November claims and recommended that they be
paid.
The committee reviewed the Gray Construction estimate #4 and R. H. Grover
estimate #6. Discussion regarding Morrison-Maierle, late fees and punch list
items. The committee recommended to pay the estimates as submitted.
A letter from the Montana Department of Commerce regarding the 1996-97 audit
was distributed.
The overtime report for PPE 11-25-98 was distributed and reviewed.
Don reported that Paul Strom, CPA, will present the 1997-98 audit at the
December 15th Budget/Finance Committee meeting.
Discussion regarding increasing the dollar amount for capitalization of equipment.
In July 1984, Resolution No. 2073 established the amount at $400. The State of
Montana and other communities have set the amount at $5,000. Our auditors
have recommended that the city increase their amount also; possibly to $5,000.
Equipment purchases less than this amount would be expensed. Items costing
$5,000 or more in the enterprise funds would be depreciated over the estimated
life of the asset.
Discussion regarding the resolution on the council agenda tonight about an
agreement with Wagner Financial Services relating to an IRS section 125 plan.
In answer to a question, Don reported that he has been informed by our computer
programmer that the Y2K update should be completed by March 31, 1999.
Larry McCann is requesting that income from the Homebuyer's Program be put
into a demolition fund and used for structure abatement.
Purchase requisitions were approved as follows:
GENERAL FUND
Supplies for street signs
Two electric door openers and two 14' doors in new shop;
One door opener and 14' door for old shop
WATER FUND
Computer equipment 1,049.97
SEWER FUND
Blade attachment for Bobcat 1,787.00
SOLID WASTE FUND
Dumping fees for October 6,003.21
STREET MAINTENANCE FUND
Road material 612.65
$ 704.16
3,500.00
Meeting adjourned at 5:12 p.m.
Respectfully submitted,
Don Hackmann
Clerk-Treasurer
MONTANA
DEPARTMENT OF COMMERCE
Local Government Assistance Division
Local Government Services-Audit Review Program
1424 9th Avenue PO Box 200501
Helena, MT 59620-0501
Phone:
FAX:
TDD:
(406) 444-3010
(406) 444-9785
(406) 444-2978
November 18, 1998
Mayor, City. Council
and Clerk/Treasurer
City of Laurel
P.O. Box 10
Laurel, MT 59044
Attention: Mr. Don Haekmann, Clerk/Treasurer
Thank you for notifying us of the actions you plan to take regarding the finding and
recommendation contained in the audit report of the City of Laurel for the fiscal year ended
June 30, 1997. Paul S~om and Associates, Certified Public Accountants;performed the audit.
Pursuant to Section 2-7-515, MCA, we have reviewed your responses to the audit findings and
recommendations, and are notifying you of our acceptance of these responses and your proposed
corrective actions.
Respectfully yours!
THOMAS P. HAYES
Audit Quality Control Reviewer
'Working Together to Make It Work'
To Budget & Finance Administration
From Larry McCann, PWD
Re: Income from the HomeBuyers Program
The City has participated in the purchase of approximately 25 homes through the
program. This program is nearing the end of the funds available.
This program caused many of our substandard housing units to be brought to acceptable
standards. These properties should be used by those qualifying for the low interest loans
for the loan term, but we all know things change for everyone.
As these properties go back on the real-estate market the City will see some
reimbursement for the investment. I request that these funds be put in a demolition fund.
A demolition fund will be used to remove other structures in the City.
We presently have two houses under orders to abate. The two properties are probably not
worth the costs to bring to code. The cost of demolition is estimated at $5000.00 and will
be applied to the taxes if the owners force us to remove the buildings.,
If the costs are put on the property taxes we will not realize any return for three years.
If we start a demolition fund with this money, at some point we should end up with a
revolving fund to be used for demolition. That will improve the overall appearance of the
City of Laurel.