Star-Journbal Editor
After reviewing the list of improvements made by the city of Hillsboro over the past two years in the way it manages its finances, the mayor and city administrator are encouraged, but neither is satisfied.
In short, their response is, this and better will do.
"We've come a long way from where we were, but we're a long way from being where I want to be," said mayor Delores Dalke. "We're headed up the right path."
At the July 5 council meeting, Scot Loyd from the accounting firm of Swindoll, Janzen, Hawk & Loyd, McPherson, reported that significant improvements had been made in policies and procedures in 2005 compared to 2004.
But at the same time, Loyd reported some areas of continued concern, including how the city handles uncollectible past-due utility payments, and the possible financial risks of not having a written agreement with the golf association.
In addition to number crunching, the firm reviews and recommends changes to help cities comply with laws and regulations. Suggestions are reviewed annually until corrections have been made.
Offering recommendations is an added service which city administrator Steve Garrett appreciates.
"The new auditors have a lot more stricter expectations for us, and so there were a lot of, here's what we want you to do this year," Garrett said. "We've been able to accomplish those and move closer to what they want us to do. And it makes for a little bit better reporting.
"These auditors have a lot of experience with governmental audits, and that's what I like about them," he added.
COUNCIL
From page 1
While the council did not take action on any of the firm's recommendations, all of them are in process and probably will be adopted, Garrett said.
Loyd said that his firm worked with a dozen other cities and that, like Hillsboro, all had policies and procedures that could be improved.
The firm recommended that Hillsboro should alter its procedures on the write-off of uncollectible utility accounts, and how to maintain records for possible future collection.
"There needs to be some kind of process there to make sure that when they come back to this city, before they can hook up to utilities, they can be told, these are your past bills, you need to pay them before you get a hook up," Loyd said.
With regard to the golf association, the firm recommended that the city put its agreement with the golfers in writing.
"The agreement has always been kind of verbal, and I would say it probably has some opportunity for some exposure there for the city," Loyd said. "It's something you should probably make sure is followed up with."
During its first audit of Hillsboro's policies and procedures in 2004, the accounting firm identified several areas of concern.
According to Garrett, all of these issues have been resolved or are in the process of being resolved.
For example, the 2004 review encouraged the city to tighten control over the utility meter deposit fund. As a result, a fund has been set up in the computer system and now appears on the monthly reports given to the council, the report read.
Also in 2004, the city was not inventorying equipment and supplies. Since then, the city completed an inventory, which the city plans to repeat annually.
Working with a proactive accounting firm has been a positive learning experience, Garrett said.
"You can have a long-term relationship with an auditor, and our previous auditor did good work for us, but the new guy does it a little bit different," he said.
"You just have to step up to the plate, and do things a little differently. It keeps you on your toes and keeps you awake a little more. I think it is a positive."
In other business,
— The council approved payments in the form of vouchers for $51,916.48.
— The council announced the public hearing on the issuance of industrial revenue bonds for Golden Heritage Foods was postponed, and would be rescheduled at a later date.
— The council considered a new ordinance that would lengthen by one hour the time fireworks could be discharged on July 4 in the city, from 11 p.m. until midnight.
Ironically, Mayor Dalke said she had received a phone call from a resident asking the hours be shortened.
"They wanted to have people quit shooting them by 10 o'clock because they were tired of being kept up all night by fireworks," Dalke said.
Councilman Matt Hiebert said, "Nobody is obeying the rule as it is. Our police would be going out writing citations for people shooting off fireworks rather than something else."
After city administrator Steve Garrett said was "no major rush" to pass a new ordinance, the matter was tabled for further review.
— After briefly considering selling them on the Internet, the council agreed instead to have any salvageable items from the former swimming pool added to a list of items to be auctioned off at a later date.
Dalke asked about the status of plans to dismantle the former pool, saying, "It looks awful."
Garrett indicated that the pool had been drained, but the mayor said the project needed be done, quickly.
"If they're going to put that back to grass this fall, we need to get with it, because you don't plant grass in Kansas in the spring, unless you want to be out there babying it all the time," Dalke said.
Garrett indicated that plans to dismantle the pool would be expedited.
— The council heard from citizen Sarah Penner, 218 S. Washington, who asked the council to look again at the admission fees at the new Hillsboro Family Aquatic Center.
Specifically, Penner asked the council to reinstate an option to purchase season tickets to the plan.
"We're keeping out people who we built the pool for, who don't have a lot of cash to spend," Penner said.
"Even if you have to raise the price of season tickets, that's fine, too. But give us the option to purchase season tickets."
Garrett said that although the city never intended to make a profit from its pools, reducing fees could result in costs being shifted to citizens who don't use the pool.
"I guarantee you, if we have to subsidize this by raising people's property taxes, we're not going to have you coming in here asking about passes, we're going to have people coming in here saying, 'I don't ever use that pool, why are you raising my property taxes to pay for that pool?'"
Dalke told Penner that the fee schedule would be reviewed after the season, and thanked Penner for bringing her concerns to the council.
Penner, who seemed satisfied that she had been heard, said, "I would like to see it publicized when you get your review done."
— After Garrett added the words "organizes and assists with" to the street foreman job description, the council approved it for publication.
The position has been vacant for some time and city officials are eager to see it filled. Before the new wording, the job description could've been misinterpreted to say the foreman would merely supervise.
"I hope whoever takes this job understands they're not going to be staying in the office," Dalke said.
— The council approved payment of $12,778 to EBH and Associates for engineering services for the water treatment plant project.
— The council approved pay estimates to Utility Contractors, Inc., for $199,150 for construction work on the water treatment plant project.
— The council withheld payment of $76,778.48 from Carrothers Construction Company. The council agreed not to pay Carrothers another dime until it delivers the remaining safety pads for the pool's playground equipment, and finishes other work that needs to be completed.
Contacted on Monday at Carrothers' headquarters in Paola, contractor Lyle Larson said he was sorry to hear the council had stopped payment.
Larson said he sympathized with the council, because he has been trying for weeks to get the pads delivered.
A sub-contractor should have provided the pads, he added, but was having trouble getting them delivered from the manufacturer, located in Toronto, Canada.
"We're pretty proud of the pool we've built," Larson said. "I think the citizens have gotten their money's worth and I thought the city had felt so too.
"If you write an article can you send me a copy? Maybe I can send it to my rep and supplier to let them know this is getting serious.
"I'm going to continue to try to expedite the delivery on it," Larson added. "Our superintendent is ready to install it when it comes in."
— The council approved for publication the bid proposal for municipal airport improvements and a new helipad.
Bob Previtera of Reiss and Goodness Engineers told the council the project would cost between $162,000 and $165,000 to complete.
Ninety percent will be paid for through a grant from the department of transportation and the Kansas Airport Improvement Program. Ten percent will be paid by the city.
For an additional $30,000, improvements could include an asphalt tie-down pad for airplanes. The council asked Previtera to include the pad in the bid, but will decide later whether to build it.
— After learning Hillsboro Community Medical Center had not received a hoped-for tax credit to build a new front entrance at Salem Home long-term care unit, the council approved $32,964 for remodeling the interior of the facility. Jantz Construction of Hillsboro will do the work. The funds will come from the 5-mill allocation set aside for the hospital.
— The council approved a request by Dalke to purchase for $1,200 computer software to be loaned to resident David Baker to make a promotional video for the city.
"He wants to do the video and won't charge us, but he needs this software to do the job," Dalke said. "I think we should do it. Anybody else we've talked to about doing a video for us won't set foot in town for less than $20,000."
— The council approved at the mayor's request the appointment of Hillsboro High School principal Dale Honeck to serve on the planning commission, and Krista Heinrichs to serve on the board of zoning appeals.
Lowell Goering had filled both positions, but resigned for health reasons after serving a combined total of 56 years on the groups.
Goering was honored with a certificate of appreciation before the council meeting.
"You have served very, very well and we really do appreciate your leadership," Dalke said. "I'm sorry that you had to resign, we would have liked to have kept you."
— The council met for about an hour in executive session with hospital staff and hospital board members to discuss matters protected by attorney-client privilege. No action was taken as a result of the meeting.
