Special Meeting

January 30, 2012

6:00 p.m.

The Mayor and the City Council for the Town of Amite City, Louisiana came together in a special session this 30th day of January 2012 at 6:00 p.m. The meeting was held in the meeting room of City Hall, 212 E. Oak Street, Amite, Louisiana. Mayor Goldsby called the meeting to order and asked Ms. Lee for roll call. The following were present: R. E. Goldsby, M.D., Mayor; Walter Daniels III, Mayor Pro-tem; Council Members Jonathon Foster, Mark Vining, Neil Currier, and Rose Sumrall.

Police Department.

Mayor Goldsby recognized Chief Trabona, who recommended hiring Daphne Jackson for the position of radio operator to replace Lisha Thomas, who resigned. Mr. Foster moved and Mr. Vining seconded to hire Daphne Jackson as a radio operator in the Amite Police Department. Motion carried unanimously.

Lee Gray, Certified Public Account – Financial Audit 06/30/11.

Mayor Goldsby recognized Lee Gray, who stated Laura Gray-White will be providing information on the financial audit FYE 06/30/11. Mrs. Gray-White provided the following summary of the FYE 06/30/11 audit:

Page 1. Independent Auditor’s Report. Ms. Gray-White said the auditor’s report gave a clean opinion for the town and added this is favorable as it allows the town to continue to receive federal and state grants and loans.

Page 4. Statement of Net Assets. Ms. Gray-White said this statement places a value on buildings, land, and employee leave. The assets and liabilities include governmental activities and business-type activities. Total net assets of the town were about $4.956 million as of June 30, 2011, with a deficit in the Business-type Activity of $334,508.

Page 5. Statement of Activities. Ms. Gray-White said this statement gives the expenses and revenues of all governmental activities, and added the garbage department charged sufficient fees to cover expenses.

Page 6. Balance Sheet. Mrs. Gray-White said the Balance Sheet gives the assets and liabilities of each fund, except the Business-Activity Fund. She pointed out that General Fund owes Economic Development $125,000 and Waterworks Fund owes General Fund $133,712, as of June 30, 2011.

Page 8. Statement of Revenues, Expenses, and Fund Balances. Mrs. Gray-White pointed out the gross sales tax was $2.66 million, down from the previous year. Total revenue of the town in governmental accounts was $3.941 million, with expenses of $4.041 million, resulting in a deficiency of revenues over expenses of $99,551. Other sources of financing resulted in a net change in Fund Balance of a negative $95,570.

Page 10. Statement of Net Assets - Proprietary Fund. Mrs. Gray-White said current assets as of June 30, 2011 were $14,563, with total net assets of $2,598,812. Mrs. Gray-White commended the town for reducing the Proprietary Fund’s debt to General Fund by $88,335.

Page 11. Statement of Revenues, Expenses, and Changes in Net Assets – Proprietary Fund. Mrs. Gray-White said the Proprietary Fund had total operating revenues of $922,668 and total operating expenses of $1,121,631, resulting in a net operating loss of $198,963.

Page 25. Revenues – Actual and Budget. Mrs. Gray-White said the Arts Council Fund had revenues of $2,042 over budget, resulting in a 9.98% variance and the Capital Improvements Fund had revenues of $300 over budget, resulting in a 30.00% variance. Expenses in the Arts Council Fund were $1,606 over budget, resulting in a 16.06% variance. Mrs. Gray said it is a small amount, but is still over the 5% allowable.

Page 27. Receivables. Mrs. Gray-White said this is a list of money owed the town as of

June 30, 2011.

Page 32. Long-Term Debt. Mrs. Gray-White reviewed the source of long-term debt, including compensated absences, capital leases, and revenue bonds.

Page 38. Dedication of Sales Tax. Mrs. Gray-White said the sales tax fund is pledged to the operating expenses of water and sewer as per the DEQ loan resolution. The town has dedicated 2.5% of sales tax to the Economic Development Fund. The proceeds of the sales tax is pledged toward the operating expenses of water and sewer as per an ordinance adopted in 2010. Mrs. Gray-White said sales tax cannot be dedicated toward anything else.

Page 44. Contingent Reimbursement. Mrs. Gray-White said the contingent reimbursement is a result of a Hurricane Katrina contract.

Page 44. Commitments and Contingencies. Mrs. Gray-White reviewed the four USDA water and sewer contract commitments.

Page 45. Subsequent Events. Mrs. Gray-White said the town requested and was relieved from the USDA Rural Business Enterprise Grant Revolving Loan Program and repaid all grant and loan proceeds, interest income and fees from the program.

Page 59. Schedule of Expenditures of Federal Awards. A single audit is required for all expenditures over $500,000 in federal funds. The Town spent $3,750,660 in federal funds.

Page 60 – 64. Utilities Revenue Bonds. Mrs. Gray-White said these documents are a requirement of the DEQ sewer loan.

Page 66. Independent Auditor’s Report on Internal Controls. Mrs. Gray-White said this report provides information on tests of the Town’s internal controls. She said there were three areas identified.

Page 68. Independent Auditor’s Report on Internal Controls over Federal Programs. Mrs. Gray-White said there were no findings with the federal projects funded through USDA. She further stated this is a major process and takes a lot of work to ensure no findings.

Page 70. Prior Year Audit Findings. Mrs. Gray-White reviewed the two findings.

Page 72. Financial Statement Findings. Mrs. Gray-White said the finding of a Lack of Internal Controls is repeated each year, as the size of the town prevents this finding from being resolved. The Town would need to hire a payroll clerk, an accounts payable clerk and a receivables clerk, which would be cost-prohibitive, so no change is recommended.

Local Government Budget Act Violations occurred due to $300 less in budgeted revenues in the Capital Improvement Fund and $2,042 less in revenues and $1,606 less in expenditures in the Arts Council Fund.

The 1974 Louisiana Constitution Violation occurred because the town entered into a contract for a Downtown Coordinator, who was paid, but didn’t submit required time sheets or other documentation showing hours worked and activities performed.

Mayor Goldsby closed the special meeting and opened the agenda meeting.

To Set Agenda for February 7, 2012 Regular Meeting (No action taken.)

Mr. Daniels – Water Meters.

Mr. Daniels requested information on the increased cost of additional meters and required funding. Mr. Daniels commented that the engineering firm should have known the number of meters after a preliminary field count. Discussion continued on how the meter count was determined. Mr. Daniels said he doesn’t think the incorrect meter count is a fault of city hall or the street department, but the engineer’s fault. Mr. Daniels commented that for the size of the project, he feels there is poor design and the town is not satisfied with the project. Discussion followed on multiple and individual metering and other issues with the project.

Mr. Foster – Update on Police Station.

Mr. Vining – Police and Fire Matters.

Mr. Vining – Chamber of Commerce.

Mr. Vining – Water and Sewer Projects.

Mrs. Sumrall – No agenda items.

Mr. Currier – No agenda items.

Mrs. Sumrall moved and Mr. Currier seconded to adjourn. Motion carried without opposition.

Attest:

R. E. Goldsby, M.D.

Mayor

Mary Lou Lee

City Clerk

A_120016

Publish in the Amite Tangi Digest on Wednesday, February 15, 2012.