February 2, 2016
MINUTES of REGULAR SESSION of the BOARD of COUNCIL
of the CITY of RUSSELLVILLE, KENTUCKY
held FEBRUARY 2, 2016
The Russellville city council met in regular session on February 2, 2016, at 5:00pm, in city hall. Mayor Mark Stratton presided over the meeting with council members present Jimmy Davenport, Pat Bell, Sandra Kinser, Larry Wilcutt and Darlene Gooch; member Jack Whipple was absent.
Wilcutt moved, seconded Kinser, to approve the minutes of the council meeting held on January 19, 2016; being no additions or corrections the motion passed with all present voting yes.
Under appointments the mayor asked the council’s approval of the re-appointment of Mary Woodlee and Kenneth Bellamy to the Housing Authority Board; both for four-year terms.
Kinser moved, seconded by Bell, to approve the mayor’s re-appointments of Mary Woodlee and Kenneth Bellamy to the Housing Authority Board; the motion passed with all present voting yes.
The mayor asked the council to approve his re-appointment of George Offutt and Wayne Yonts to the Russellville-Logan County Airport Board; both for four-year terms.
Bell moved, seconded by Wilcutt, to approve the mayor’s re-appointment of George Offutt and Wayne Yonts to the Russellville-Logan County Airport Board; the motion passed with all present voting yes.
There were no announcements by the mayor.
Council member Pat Bell gave a report on the Fire Department. There were a total of 121 for the month of January and the year so far.
Next on the agenda was the financial report by City Clerk/Treasurer Bob Riggs.
Next under new business was the presentation by Anna Gentry with Kem, Duguid and Associates, of the 2014-2015 audit findings. Gentry said management and auditors had both met their responsibility. The audit opinion states the financial statements presented fairly, and was an unmodified and clean opinion. Gentry explained this year there had been major changes to governmental accounting. The City adopted GASB 68 which is accounting for pensions and the auditor’s opinion was not modified in respect to this matter.
The Total Asset of the City was $2,669,271.00 but is without the Fixed Assets for long term debt. Total Revenue for the General Fund and Municipal Road Aid was $5,911,000.00 and consistent with prior years. Total Expenditures for these accounts were $5,845,000.00; approximately $905,000.00 was spent for Capital Outlay. Overall in the Governmental Fund balance there was an increase in the fund balance of $6,148.00. In the General Fund there was an increase of approximately $152,000.00; approximately $180,000.00 was spent on Capital Outlay more than last year.
In the presentation of the Proprietary Funds, which is the Water and Sewer and Carpenter Center, the Total Assets were $11,026,667.00 with most of that being the Fixed Assets. Total Liabilities totaled $4,150,846.00. The Net Position was $6,922,907.00 for the Proprietary Funds. On page 19, Gentry reported the total Operating Revenue was $4,225,798.00 and total Operating Expenditures were $4,327,502.00; maybe a three percent increase. Expenses were also down about three percent. The Non-Operating Revenue and Expenses were about $273,000.00. There was a transfer from the General Fund to the Carpenter Center of about $356,000.00. Gentry explained overall, for these types of funds, (there was) a net increase in position of $171,569.00.
Gentry reported from Note 6, Capital Assets where she had previously reported approximately $905,000.00 being spent on Capital Outlay, that $688,000.00 represents vehicles, infrastructure and other projects of about $217,000.00.
In regards to the Carpenter Center there had been approximately $23,000.00 of improvements with office and fitness equipment. Gentry said with the Water and Sewer there had been approximately $346,000.00 in improvements to the utility plant; furniture, meters and water lines.
From Pages 44-45 was the presentation of the Changes in Debt. There was an increase of $215,000.00 in debt due to the purchase of seven new police cars. There had been a principal reduction in existing debt with $154,000.00 for the year. The Water and Sewer debt had an increase of $250,000.00 for the financing to BB&T for the sewer rotors and the reduction of the current debt of the principal payments of approximately $489,000.00 for the year.
From page 54, Note 18, Gentry went over the presentation of the implementation of GASB 68. Gentry said in Note 10 there had been a significant change in the disclosure for the year. Note 18 requires governments to define pension plans to recognize their long-term obligation for pension benefits as a liability. Gentry explained this basically meant that she had been provided actuary reports of anybody who participated in the pension system. The amount that was proportionate to the city of the entire unfunded pension liability for the state of Kentucky is .681952%. As a result changes that were to the financial statements for the external reporting you will see the Net Pension Liability for all funds government-wide (Water/Sewer, Carpenter Center) was $5,926,200.00. Gentry explained she had not calculated these amounts, they were actuary and determined from the Kentucky Retirement website. This is a year behind so what you paid in 2015 was actually deferred of about $484,000.00.
Riggs asked Gentry what the amount the City was owed more, was that the net? Gentry answered that the Net Pension Liability was 5.9% (Page 58), the City’s proportionate share of the entire State’s unfunded plan. Gentry added that each year the State would have the audit and the actuary report and the numbers would be changed annually based upon those figures.
Gentry continued with the Total Revenue of General Fund of $36,000.00 unbudgeted, expenditures approximately $20,000.00 more than budgeted; most of this was in Capital Outlay.
Gentry said the report to management toward the back of the report that the letter was standard; there have been no changes since last year. She explained she had to report basically if there were any significant audit findings (GASB 68).
Kinser moved, seconded by Wilcutt, to accept the audit as presented by Kem, Duguid & Associates; being no discussion the motion passed with those present voting yes.
Kinser moved, seconded by Bell, to leave regular session and enter into executive session for reason of property, personnel or litigation and pursuant to KRS 61.815(1)(a); the motion passed with all present voting yes.
Gooch moved, seconded by Bell, to leave executive session and return to regular session; the motion passed unanimously.
Wilcutt moved, seconded by Bell, to adjourn the meeting: the motion passed unanimously.
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