01-04-1988 (City Council) Minutes CALLED CITY COUNCIL
3 7 4 MEETING - MINUTES
JANUARY 4 , 1988
The Wylie City Council met in a called session on Monday,
January 4 , 1988 at 6 : 30 P .M. in the Rita & Truett Smith
Library workroom. A quorum was present and notice of the
meeting had been posted in the time and manner required by
law. Those present were Mayor Chuck Trimble, Mayor Pro Tem
Sandra Donovan, Council Members Calvin Westerhof , Chris
DiTota, and Marvin Blakey, City Manager John Pitstick, City
Secretary Carolyn Jones , Finance Director James Johnson,
Auditors Brent Doll , Scott Hatfield and Mr . Charles Binford
from Binford Financial Consultants . Councilman John Akin
and Councilman Kent Crane arrived late.
Mayor Trimble called the meeting to order and Councilman
Westerhof gave the invocation.
PRESENTATION OF COMPREHENSIVE ANNUAL FINANCIAL REPORT:
Finance Director James Johnson stated that this report was a
little different from last years as the staff was going to
submit this report to the Government Finance Officers
Association along with an application for the certificate of
achievement for excellence in financial reporting. It is
very unusual for a city to receive this award the first time
they submit an application for it, but hope to receive the
award in the future.
Mr . Johnson explained the reporting entity and its services
and went over the local economy for the metroplex . The fund
structure of the City is set up to where each fund is
considered to be a separate accounting entity. Mr. Johnson
also explained that the City' s accounting records for
general governmental operations are maintained on an accrual
basis. The revenues for the City of Wylie fell short of the
estimated projections . The tax revenues were up along with
the miscellaneous revenues, but the licenses and permit fees
were down and the franchise taxes were down. The sales tax
has not increased as staff thought it would with the growth
the City has had . The City has collected 92 .4% of the
current taxes, these have been slow in coming in. This
92 .4% is low compared to other years of collections .
Overall the City ended its fiscal year with a $227 ,677
deficit in the general fund , with water and sewer fund
ending with a $147,925 deficit .
Mr . Johnson and the auditors went over each fund and their
balance and the line items that had not produced the
revenues as estimated.
Mr. Binford stated that the computation of direct and
overlapping debt shows the City is very small compared to
the School District and County and College Districts. The
summary shows the tax rate for the City has set at $.49
since 1984 and yet the School tax rate has claimed very year
since 1984 .
Mr . Johnson, Finance Director , stated that the sales tax and
and ad valorem taxes have come in slow since 1985 and this
is a direct relationship to the economy.
Councilman Akin asked Mr. Binford how this 92 .4% collection
of taxes compared to other cities. Mr . Binford said Plano
is collecting 98% and other cities in this area are around
94% to 95% collections.
Councilman DiTota wanted to know what the auditors would
recommend for setting up the reserve fund for General Fund.
Mr. Scott Hatfield, Auditor, said usually we recommend two
months expense but with the deficit the City has you should
have four (4) to six (6) months expenses.
Councilman Akin wanted to know if Mr . Binford felt it was
hard to predict revenues with the economy like it is. Mr .
Binford said yes it was .
Mr . Johnson, Finance Director, said he expects revenues to
come in slow again this year and unless economy picks up it
could be worst than last year .
Mr . Brent Doll , Auditor, went over the management letter and
voiced his concern about the type data system the City has.
This system is not designed to pull the reports you are
trying to pull and therefore causes a lot of problems each
month at closing . Mr. Doll also stated that in the past he
has wanted to have better controls over purchasing and this
year there was a manual on purchasing and there seems to be
better controls. Mr. Doll also stated that over all the
accounting staff is improving, but is is not a strong staff
and they need more education.
City Manager John Pitstick stated that there were enough
people in finance, but the system is not working the way we
need it. We need to replace the soft ware system we have.
City Manager John Pitstick also stated that he had rather
spend money on soft ware than adding more people.
Councilman Akin asked if the auditors come out once a year
or periodically. Mr . Doll said they come quarterly to check
the records and more often if there is a problem and James
call them out .
Mayor Trimble recessed the open meeting and convened Council
into executive session at 8 :00 P.M. under the authority of
Article 6252-17 V.A.C.S. , Section 2 paragraph "g" personnel
matters - alternate Judge for upcoming election.
Mayor Trimble reconvened the Council into open session at
8:10 P.M.
There being no other business, a motion was made to adjourn
with all in favor .
376
a��nnm,„,„,„,„,OF /
.e:/....e;
.,
+mac
SEAL -
3 :4i
�ckmbl' -- -'-?Z------ , Mayor
/y,,, o
ATTEST :
Carolyn es, Secretary