July 10, 2006

The Moran City Council met in special session on Monday, July 10, 2006. Mayor Phillip Merkel called the meeting to order at 7:00 PM. Councilmembers present were Mike Holman, Jerry Jackman, James Mueller, Warren Johnson, and Chryll Ginn. Also present were Lori Evans, City Clerk, Phillip Jarred and Bill McAdam.

PRESENTATION OF 2005 AUDIT REPORT

Phil Jarred of Jarred, Gilmore, Phillips presented the 2005 budget report. He reported there were no budget violations but did note the total of Emprise Bank’s pledged securities and FDIC insurance did not adequately insure the City’s deposits as of the year ending December 31, 2005.

Mr. Jarred suggested the following changes to the City’s accounting procedures:
• Only pay accounts payable charges from original invoice. If there is no original invoice, document reason for lack of original invoice and attach to monthly statement.
• Employees should personally sign invoices for items they purchase, especially fuel tickets.
• Employees should personally sign their time sheets with Supervisor signing off on each timesheet. Mayor or treasurer should sign off on Supervisor’s timesheets.
• Clerk’s office should maintain a completed I-9 for each employee.

PREPARATION OF 2007 BUDGET

Mr. Jarred noted a decrease in revenue in the Water Fund and suggested the Council might need to consider increasing rates. Mr. Jarred reviewed the proposed budget for 2007. The Council discussed the budget and agreed to increase the proposed transfer from the Electric Fund to General Fund from $34,000.00 to $39,000.00 and to decrease the proposed transfer from the Electric Fund to the Fire Equipment Reserve Fund from $10,000.00 to $5,000.00. Councilmember Mueller moved to publish the proposed budget with these changes. Ginn seconded the motion, motion passed with all approving.

WATER PROJECT UPDATE

The Council reviewed Shawn Turner’s updated estimates for the water project. Bill McAdam suggested the City split the project into two smaller projects and finance the projects with City funds rather than using loan funds from the Kansas Department of Health and Environment. The Council discussed the shortfall in the Water Funds and the feasibility of splitting the project. No action was taken. The Council reviewed water rates of cities across the state of Kansas and various utility billing scenarios calculated with increased water rates and meter charges. Councilmember Mueller moved the City draft an ordinance increasing water meter charges by 25% and water rates to $4.75 per 1000.00 gallons. Jackman seconded the motion, motion passed with all approving.

ADJOURNMENT

Councilmember Mueller moved the meeting adjourn at 10:10 PM. Holman seconded the motion, motion passed with all approving.

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This page was prepared

August, 2006