On August 19, 2024, City Council Meeting, the council approved a budget that included terminating 4 city staff positions, as well as water, sewer and sanitation rate increase. (Attachment 3, final budget) Please note that the only ordinances passed for rate increase on August 19th was Water and Sewer at a rate of 25%. These will effect on the billing cycle that comes out at the end of September, due by October 10th bill.
The positions that were terminated due to budget were PWA Billing Clerk position, PWA Maintenance Position, 2- Street and Alley Maintenance Positions. Council restructured a position to cover Code Enforcement and PWA Billing and moved Animal Control to the police department.
In February 2024, the mayor terminated the CPA contract and then affirmed by city council in March 2024 meeting due to breach of agreement for delaying financial statements to city auditor and incomplete payroll taxes. The CPA was to pay all payroll taxes per contract, it was discovered that this had not been done. Financial reconciliations were presented each month by CPA showing the payroll taxes. This created some financials hardship for the city.
A new CPA firm was hired in March 2024, who has been working to get the city up to date on past due payroll taxes and working with auditor to get the prior year financial statements to the city auditor. As well as presenting monthly financials to the city council.
The city works on an estimate of needs budget which is due to be filed with county clerk by August 27, 2024. In July 2024, the CPA started to work on the budget, they wanted to meet with department heads to get a needs/wants list. The mayor requested a flat budget be presented as the year ahead looked to be a tight budget year, however the CPA felt the council needed to be presented with all the needs and wants from department heads for council to make the cuts. This draft of the budget was presented to the council on August 5th, at the special budget meeting. (Attachment 1, CPA Draft) Council removed all the needs and wants that were placed on the budget from recent department head meetings with CPA.
At the August 5th Special Budget Meeting, the council prompted by the CPA to make large cuts, they asked department heads to see what they could cut to assist with budget constraints. After discussion with department heads, the mayor sent a list of budget cuts (attachment Budget Cuts Proposal by Mayor) to the CPA. These budget cuts were added, the budget was presented to council on August 19, 2024 regularly scheduled council meeting, this version of the budget was not approved by council. (Attachment 2: Mayor Proposed Budget) The CPA conveyed to council they needed to make larger budget cuts and ultimately Council voted a reduction in force.
