July 16, 2001

The Moran City Council met in special session on Monday, July 16, 2001. Mayor Phillip Merkel called the meeting to order at 6:40 PM. Councilmembers present were Mark Barnett, Mike Holman, and James Mueller. Also present were Lori Evans, City Clerk; Jason Prock, Chief of Police; and Phil Jarred C.P.A. for Diehl, Banwart, Bolton and Jarred.

PRESENTATION OF 2000 AUDIT - Mayor Merkel introduced Phil Jarred to the Council. Mr. Jarred presented the findings of the audit of the fiscal year ending December 31, 2000. He said that the audit was prepared in two formats, a single audit to satisfy the requirements of the city's Community Development Block Grant and the standard format as prepared yearly. Mr. Jarred said the requirements of the single audit were met and that the yearly audit findings met with all state requirements except one; Kansas Statutes require the municipal Treasurers report be published by January 31st following the fiscal year ending December 31st. The 2000 municipal treasurer report was not published until February 2, 2001.

PREPARATION OF 2002 BUDGET - Mr. Jarred presented the proposed budget to the Mayor and Council. He noted the Council should monitor the water and sewer fund closely as water expenses have surpassed revenue for the past two years and sewer expenses were higher than revenue in 2000. He noted the council might need to consider increasing rates to meet these deficits. A 10% increase of water rates would just allow the fund to break even and the sewer fund will need a 20% rate increase to meet projected expenses. The Council discussed raising utility rates to meet the needs versus increasing tax rates. The Clerk advised the Council that the City has not raised water and electric rates since 1987. Councilman Mueller suggested the Council review utility rates with other communities of comparable size as it seems that all utility rates may needed to be increased. The Council asked the Clerk to check utility rates with other communities and report at the August meet-ing.

Mayor Merkel called for a motion to adopt the budget as written. Councilman Barnett moved the budget be published as written. Holman seconded the motion, motion passed with Councilman Mueller approving. The Council asked the Clerk send a copy of the rate inquiry and a history report showing revenue and expenses for the water, sewer, and electric funds with the next Council packets.

Councilman Mueller moved to adjourn the meeting at 8:22 PM. Holman seconded the motion, motion passed with Councilman Barnet approving.

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