By Myrna Trauntvein
Times-News Correspondent
Mona City's finances are in a much better state than
they have been in the past thanks to the money which came to
the city coffers once the rates for utilities were
raised.
"The city does have some funds which need to be spent
this fiscal year," said Greg Ogden, the city's independent
auditor. Ogden attended city council meeting to present the
audit report for the 2002-2003 fiscal budget year.
"The city was required to charge 125 percent of the
natural gas bond which was barely met in 2002 but, because
rates were raised to accommodate the requirement, the city
is in compliance for 2003," he said.
"Revenues are higher for 2003 than for 2002," said
Odgen "and, at the same time, your expenses are lower. That
is a good situation to be in."
There had been a $170,000 increase in just one year,
he said. He said the increase, was not just cash but equity
and was pretty amazing.
"When the city was a town," said Ogden, "it was
allowed to accumulate a larger percentage of unspent
funds--up to 75 percent--but that is no longer allowed. As a
city, you may only accumulate 5 to 18 percent."
They city has amassed $65,000 in the unreserved
account which should only be $35,000. The budget, therefore,
will need to be opened, a public hearing held, and the money
used for pre-determined items, which are specified by state
law, before the budget year is over.
"The state wants you to spend that money," said Odgen.
"This year, financially speaking, you are doing too
good."
The increase in revenue, which was much-needed in
previous years, came from raising rates on utilities and
from increased growth.
"You will, probably, need to open the budget for 2004,
have a public hearing, and then vote affirmatively so you
can spend that money."
There were some other findings, said Odgen, which the
city needed to take to heart this coming year.
One was that the city needs to have a written
purchasing policy on file. There is a sample policy, he
said, in the state guidelines manual which the city could
copy but it must then be kept on file.
The city council should also make certain that motions
are made for all business and all assignments. That is not
being done, said Odgen.
"In the minutes, you can read that such and such was
discussed and then, later, that such and such was
accomplished but there is no record of a motion and a
vote."
"Business needs to be approved and the motions need to
be part of the minutes."
Two areas of the budget did exceed the amount
budgeted, he said. The money should have been transferred,
following a budget hearing and opening of the budget, to
those two accounts to keep that from happening.
Under terms of the Government Findings and Access Act,
there are certain records that are to be kept for a
specified amount of time and then destroyed. Odgen suggested
the city council contact the state archives for a schedule
concerning which records should be kept indefinitely and
when others could be destroyed.
"You need to make certain that meters are read
correctly the first time," said Ogden. "There are quite a
few re-reads and one month there appeared to be 10 percent
of the meters which were re-read. To me, that seemed quite
high."
Most of the requested re-reads, however, were the same
as the original read, said Allen Pay, water master. The
record of re-reads indicated that the meters were being read
correctly the first time.
In regards to the cash used during the city pioneer
celebration, said Ogden, two people needed to be responsible
for all cash at all times.
"At Hinkley, they recently found that a lot of cash
just disappeared," said Ogden. "There can be collusion
between two people and cash can be mis used by two but it is
more rare for that to happen."
Ogden said the password to the city computer had not
been changed in several years and that was not good. As a
safe-guard, he said, the password should be changed every
six months and a copy of the password should not be kept
near the computer where it could be easily accessed.
Everd Squire, city treasurer, said he had already
followed the advice of Ogden and changed the password.
Ogden said the council also needs to review the
invoices on a monthly basis. Council members should review
the invoices and pull any invoice that any council member
had question about.
"If you have a question, don't pay the bill until the
question has been answered to each council person's
satisfaction," he said.
Mayor Bryce Lynn said the council had already begun
that practice.
"There were eight items mentioned in the management
letter last year which were resolved," said Ogden.
Using the excess revenue collected to pay down bond
payments would probably not be the best use of the money,
said Ogden.
The water revenue bonds, which the city obtained to
improve the culinary water system, have the lowest interest
rate and the bonds the city obtained to help construct the
secondary water system are interest free.
The natural gas system bond was the highest interest
rate bond the city had but that bond would be repaid in
2005.
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