Published: February 07, 2009 12:32 am      

Audit brings changes in Welton

WELTON — The Welton City Council made several transfers of funds here this week to correct deficits. The changes were required by state auditors who last week completed 11 days of work in Welton.

The auditors’ full report will be released after it has been twice reviewed in the State Auditor’s office.

The audit came about because local residents petitioned for it.

Here are the three transfers:

• $8,182 from the general fund to the TIF fund item to eliminate a negative balance. (Expenses for setting up TIF)

• $6,000 from the local option sales tax fund to the garbage fund to eliminate a negative balance. The negative balance was accrued at a time when the city paid half of residents’ sewer bills.

• $4.406.29 from the general fund to the water fund to eliminate a negative balance. The water fund was created at the time the city began a municipal water project, but the auditors said such a fund could not be started until the water service was operating.

The council also approved a payment of $1,271.75 to City Clerk Leann McCallister for 84.75 hours working with the auditors while they were here and $130.99 for mileage from her other job in Maquoketa.

Her regular pay as city clerk is $600 per month. She has said she regularly works 20 hours a month.

The council also approved payment of $174 to Charlotte’s city clerk for working with the auditors when McCallister was unavailable.

The council also approved the following purchases recommended by the auditors: an external hard drive for the city’s computer, up to $200; a virus protection system, $8 per month; a safe for storage of CDs and other documents, up to $250.

At the direction of the auditors, the city’s debit card was cancelled and a credit card is to be issued.

The council also finalized the amount of money to borrow from Clinton National Bank (Delmar Branch) to finish paying for the fire department’s land and well.

The city clerk had made arrangements for a loan of up to $60,000, but Mayor Janet Huffman, relying on an October balance sheet, pointed out various fund balances from which she said $26,000 to $30,000 could be borrowed to reduce the interest-bearing loan from the bank.

Tuesday night, however, after the transfers of money to correct negative balances were made, the council decided to make the loan $38,500 at 5.25 percent interest. The loan can be paid off early, according to the agreement.

In other business, the council approved seeking bids for street repairs. Although there is about $60,000 in the road use tax fund, McCallister cautioned the council against doing extensive repairs.

She pointed out that the budget she had presented for the 2009-2010 fiscal year shows only $18,504 for general operating expenses at the end of that year. Much of the road use funds should be kept for emergencies, she said.

She recommended seeking bids for only repairs and seal coating. The council agreed.

The council reluctantly agreed to extent the deadline for completion of the municipal water project, which was supposed to be finished by Jan 15, to June.

The matter of a maintenance agreement for the new emergency generator came up again. It was tabled for more information.

Marty Jahn of Charlotte was hired to be water and sewer superintendent at $500 a month when the water project is completed.