12-06-1988 (City Council) Minutes 216
CALLED CITY COUNCIL
MEETING - MINUTES -um*,
DECEMBER 6, 1988
The City of Wylie City Council met in a called session on
Tuesday, December 6, 1988 in the Conference Room of the City
Manager' s Office in the Municipal Complex . 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 John Akin, Council Members
Marvin Blakey, Bud Naish, Ortie Messenger, Jim Swartz and
Tom Pritzkau, City Secretary Carolyn Jones, Secretary Candi
White, Auditors Brent Doll and and Scott Hatfield.
Mayor Trimble called the meeting to order and Councilman
Swartz gave the invocation.
Mr . Brent Doll stated that the meeting tonight was to give a
preliminary over view of the 1987-88 audit. Last week we
completed the over all audit, although complete figures are
not ready for you tonight . We have a preliminary report and
the management comments for you.
Mr . Scott Hatfield stated that each fund is set up as it' s ..,�
own company and is self balancing . Most accounts were in
good shape except debt services , this does not concern us.
The one that does concern us is utility - deficit of
$123,890 . Special Revenue funds are in good shape and this
year we closed out revenue sharing . In capital projects,
took $50 ,00 from Public Safety to use in utility for
payroll , this was transferred in 1986 budget year and never
was paid back. This needs to be paid back.
Councilman Naish asked if $50 ,00 has been put back in. Mr.
Hatfield said not as of 9-30-88 .
Mr. Hatfield said one positive thing is sanitation this year
has shown a small profit .
Mr. Hatfield said that payroll , municipal court and state
court funds are holding funds and should zero out each
month. This is not happening . Mr . Hatfield also stated
that it was a good year over all , bank balances were up a
little , but the cash flow is still critical , and spending
needs to be watched.
GENERAL LEDGER MAINTENANCE: Mr. Hatfield stated the soft
ware has some problems, it is not closing the month end or
year end properly. Mr. Hatfield said he did not think we
needed a new system, but needed to evaluate the one we have.
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Councilman Pritzkau wanted to know how many dollars are
being wasted on this system. Mr. Hatfield said probably 15
to 20% but cannot give you a direct figure.
OFFICE ORGANIZATION: Mr . Hatfield stated that a lot of time
was spent in finding bank statements, no central filing
system. There are three copies of each check, there needs
to be guide lines on how to file these check copies. The
same thing holds true for the vendor files . There was also
some original documents that could not be located .
SPECIAL PURPOSE BANK ACCOUNTS: We have found seven (7) new
bank accounts that were never set up on the general ledger.
Some of these new accounts are: Employee Fund Account,
Railroad Crossing Fund, Police & Drug and Crime, Police
Training Fund. None of the above accounts are set up in the
general ledger, therefore, Council is not getting a report
on these funds.
Councilman Naish said Council needs to review who signs
checks and the largest amount with Council authority.
LEASE PAYMENTS: There is a large number of leases, City has
been very inconsistent in making payments. Paying
unnecessary late charges.
AUDIT TRAILS AND SUPPORTING DOCUMENTATION: In smaller
funds, very weak documentation on what is going on in the
accounts. Needs more control and supervision.
STREET ASSESSMENTS: Still have street assessments that are
outstanding from several years back.
COURT FUND MANAGEMENT: There are three places to deposit
money, General Fund, Municipal Court Fund and State Court
Fund. There is a communication problem in this area.
Checks have been ordered without check numbers, very hard to
keep up with how many checks have been written, etc, and
there are duplicate numbers on the checks .
GENERAL COMMENTARY AND CONCLUSIONS: This is the worst year
we have had , poor moral problems, incomplete job
descriptions and work load assignments , no control system
and no training .
OTHER COMMENTS AND OBSERVATIONS:
CASH MANAGEMENT : CD matured and sat in the fund for some
time, staff discovered it later and it lost interest from
December 1987 to September 1988 .
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CASHIER ACTIVITY: This area needs to be watched , checks are
left laying around. There are three suggestions for this
area: 1. all checks and cash be deposited the same day; 2 .
daily cashier duties should be placed on an assigned person
rotation, preferably utilizing all finance department
personnel on a 2-3 hour "shift"; 3 . all cash disbursements
should be signed immediately prior to release.
DEBT SERVICE BUDGETING: Currently budgeting all transfers
from the operating funds into the debt service funds by
issue. The actual debt expenditures by issue in the related
debt service funds. This system creates the appearance of
double expenditures for debt service. Our firm recommends
the budgeting process be amended to show all debt service
expenditures by issue only in the debt service funds and the
expenditure from the operating fund be shown as a transfer
out and the revenue as a transfer in.
PUBLIC SAFETY EQUIPMENT NOTES: Approximately $50,000 was
loaned from this fund to Utility. As this was and is not an
authorized use of these monies, steps should be taken to pay
it back. In addition, minutes disclosed that the intent of
City Council was to purchase a new boat and other fire
equipment from these monies . Our audit shoes these items
were purchased from the general fund not this fund.
IMPACT AND LIFT STATION FUNDS: Our audit revealed that
monies were spent from the Lift Station Fund for new sewer
lines and this should have come from the Impact Fund.
This error has been corrected by an interfund journal entry.
Our firm recommends that the Council appoint a :signature
committee or person: to manually sign all checks on special
purpose accounts .
Mr. Hatfield said in summary the numbers are looking better,
but the department is sliding. Felt three years ago
downtown would give staff a chance to catch up. Three years
later , staff does not have a day to day operations , and they
are not learning through training , but on their own.
There was discussion on the amount of water deposit and if
it was enough to cover when people skip out . It was noted
that the Ordinance states after water is cut off twice for
the same resident, then another deposit is to be collected
prior to turning the water back on.
Mayor Trimble recessed the open meeting and convened Council
into executive session at 9 :10 P.M. under the authority of
Article 6252-17 V.A.C.S. , Section 2 Paragraph "g" Personnel
Matters , Contract personnel - Auditors concerning year end
audit.
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Mayor Trimble reconvened the open meeting at 9: 50 P.M. and
stated there was no action necessary from the executive
session.
GENERAL DISCUSSION: Councilman Pritzkau stated there was a
discrepancy in PSI report for Twin Lakes . Check the
contract to see if there was 28 day testing . Appears to be
only a 60 day test not the usual 28 day standard test . Also
there was a water leak in Birmingham on the new line. The
City and M. E. Hicks had to fix it, need to make sure we
pulled their bond and seek reimbursement for the repairs the
City had to do.
Mayor Pro Tem Akin said need to tell XIT, that he needs to
be satisfied with the lines prior to the street being put
in, as he would be responsible for it. Councilman Pritzkau
said it was not the street, but the water line, it has not
been compacted properly.
Councilman Naish said he read where the City of Murphy is
going to go with Wylie with their sewer lines .
Councilman Messenger said he had a visit from Dwight Scott
concerning Brookshires . Would like to see a Resolution
showing Council support for Brookshires.
Mayor Trimble stated he received a letter from the Highway
Department and the schedule of reconstruction to Highway 78
should begin in 1992 . The City needs to acquire the R-O-W
ways prior to this time.
Councilman Swartz wanted to make sure we have the Resolution
for Brookshires on the next agenda.
Mayor Trimble said that Buddy Minyard has filed another
lawsuit against the city for the citations that were issued.
These citations were dropped after the trial was over . Rob
Dillard says there is no case. City Secretary , Carolyn Jones
said the City received a summons telling us we have 20 days
to reply. Mayor Trimble said we would wait to hear from Rob
Dillard on what to do next.
City Secretary Carolyn Jones handed out copies of the news
release and the job opportunity announcement concerning the
City Manager ' s position. There was some discussion on
sending out letters to other City' s and to publish in
newspapers as well as TML and other magazines. Change the
deadline date to February 3, 1989 in order to reach all
areas.
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City Secretary Carolyn Jones stated that a Mrs. Foster came
to see her and was a little upset. She lives on FM 544
across from Steel Industrial Park and has been told by some
of the staff members that she is in the City and is zoned
and cannot sell her property until she has put water and
sewer in. Her property is in the City, but it has never
been zoned and therefore staff cannot keep her from selling
her lot as long as she does not subdivide. She is
requesting a letter from the Mayor and myself regarding this
matter. I need to know if Council objects to me drafting
this letter for the Mayor' s and my signature. Council said
to do this letter for Mrs. Foster .
City Secretary Carolyn Jones said the newspaper called today
and wanted us to take the same ad as we had last year . The
cost of this ad was $162 . 00, do we want the ad this year.
Councilman Blakey said to put the seasons greeting in the
water bills and not take the ad. The other Council members
stated the same feelings.
City Secretary Carolyn Jones stated that there was a
committee formed while she was out of the office and there
has been a Christmas party planned for December 12th, and
employees have voted on employees of the year Police, Fire,
Public Works and City Hall staff . We would like to award
these people a plaque that will be done in house plus a .�.,
weeks paid vacation to the three employees from City Hall
and a clock and belt buckle for the fireman. The
approximate cost of the party is $600 .00 and we have this
much in the employee fund.
After some discussion, it was granted by Council to give the
week off plus the plaque and belt buckle and clock for fire
department.
Also need to reschedule the sign ordinance.
There being no other matters of discus n; a motion was
made to adjourn with all in favor.
Chuck Trimble, Mayor
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