Money to meet cash needs for rest of year
Century approved four requests from Century CPA Robert Hudson Monday night to transfer money to meet the cash needs and projections for the remainder of the fiscal year ending September 2020.
Hudson recommended a monthly transfer of $5,000 from the garbage fund to the gas fund through September 2020; to close the Tornado Relief account in the amount of $11,583.46 and transferred it to the General Fund; and a request for Robin Phillips, administer for the Community Development Block Grant (CDBG) funds, for 80 percent of the additional cost of the single audit for Sept. 30, 2019, which will be almost $7,200 and will go into the General Fund and to make an operating transfer from the state Local Option Sales Tax (LOST) funds to the water fund for $94,026 to reimburse the water fund for purchase of a truck in 2018 for $36,057 and to reimburse the water fund for current year capital outlay of $57,969.
Councilwoman Ann Brooks was concerned about duplication, citing an earlier recommendation by City Manager Vernon Prather had submitted to transfer $78,000 to pay several invoices. Prather said there was no duplication, that those were two separate amounts that needed to be transferred.
Prather said the invoices were dated the middle of May, and that if the council waited until the next meeting, June 15, they would be past due. He also pointed out there is still more than $900,000 in the LOST fund to pay for repairs and construction and materials of the interconnection to Central Water Works and on well No.3.
Hudson noted that $25,000 of that will come out of the General Fund is not showing as part of the LOST funds.
“We are not asking for $78,800, it's $78,800 less $25,000 that is going to be deposited,” said Prather. “We cannot move it from the general fund straight to the water fund. It has to go to LOST and then come back.”
Council members had asked if a running balance of LOST funds could be kept for the council to refer to.
“It seems like it's a never-ending piggy bank we keep digging into,” said Councilman Luis Gomez. “Three months ago we didn't even know we had a LOST fund, and now, every meeting, we are asked to transfer money without an oversight of beginning or ending balance.”
In a motion made by Councilman Gomez and seconded by Councilman Ben Boutwell, the motion to approve three of the recommendations carried unanimously.
Hudson said he could make a spreadsheet amount transferred and ending balance since the end of April, but Gomez said he would rather have it as the council makes decisions in real time.
Brooks asked if the transfer could wait on the next council meeting so council members could see an up-to-date account of the LOST funds before making a decision.
Hudson recommended the council schedule workshops to formulate the town's budget for next year and council members agreed.
