Blame game dominates council meeting

Despite only two agenda items, one of which was dropped, city council managed an hour-long meeting that became heated.

The topic of discussion was the 2020 Legislative Audit that found several issues with the city’s accounting of funds and bank reconciliations by two commissions not being prepared properly. Finance Director Lonnie Clark spoke to aldermen about the audit, expressing that 2020 had been a difficult year for the city. During the pandemic Clark said the finance department experienced a significant amount of employee turnover, losing years of experience and that the audit reflects the inexperience of newer staff.

Clark said that both he and the mayor had spoken with the auditors and that most of the mistakes found had been corrected, no money was missing, and any other problems left were in the process of being corrected. Clark explained that the issues were not serious enough for anyone to be called to the legislative audit committee to testify, and that the city was working on training the finance department staff so this would not happen again.

The legislative audit mentions that audits of the city’s Water and Sewer Department had not been received for 2017 – 2020 and Mayor Butch Berry asked if Clark had any of those ready. Clark said he did not and explained that the city has the Water and Sewer Dept. audits completed by a private CPA firm.

This raised questions among some aldermen about why the audits had not been completed. Clark said that the Water and Sewer audits were typically two or three years behind the legislative audits and that during the pandemic he had difficulty communicating with BKD (the CPA firm). He said that they had experienced a shortage of employees as well, and that he had been bounced between employees handling the audit until recently. He said the issue had become so serious that he thought that the city may have owed them and that was the reason for their tardiness to get the audits completed. The city does not owe, and Clark expressed that the city had provided everything needed to the firm and that lateness of the audits was on them rather than the city.

Alderman Nick Roberts questioned how he could trust city financials when there were errors found by the legislative audit. He said he had been hearing “a lot of excuses” and read verbatim from the audit of specific misstatements. He said he didn’t want excuses and said, “You aren’t doing your job, Lonnie.”

The topic jumped without much order between the Legislative Audit and the specifics of the Water and Sewer audits. Berry explained, after alderman Bill Ott asked if the city held any leverage to have BKD perform their work more timely, that the city was “small potatoes” compared to their other customers. Clark said that switching firms may lead them to being further behind than they already were. In reference to the legislative audit, Clark said that he had spoken with the auditors and had been told that there were no problems with the lateness of the Water and Sewer audits, implying that it was understood the city was doing the best it could to perform its duties.

This did not satisfy Roberts and he said while he understood that the finance department was and still is understaffed, that people need to do their jobs.

Conversation unwound to questioning why the Parks department had failed to provide bank reconciliations and why cash receipts and disbursements were not properly maintained in 2020. Alderman Terry McClung tried to explain that under the previous Executive Director the journals had been “sloppy,” and that Parks staff and commissioners had spent a long time attempting to clean them up. There was some discussion on when it was Council’s duty to step in to manage an autonomous budget such as Parks’ that didn’t turn into anything fruitful. In returning to reference what Roberts had said about Clark, alderman Harry Meyer requested that alderman “Don’t jump people,” and to “have a little decorum.”

Ott motioned to approve the legislative audit, pointing out that in an approved audit council was acknowledging the issues found therein and were taking steps to reconcile them. The audit was approved unanimously.

In alderman comments, both Roberts and Meyer traded verbal blows requiring the mayor to step in and bring order back to the meeting.

The only other item

The second item of the council meeting was meant to be a discussion on election requirements in running for mayor and council. Resident Linda McBride, in Public Comments, pointed out that election requirements, such as needing to live within the legal limits of the city, were state law. She said rumors were abound that some looking to run for mayor were not living within the legal limits and instead using their business address illegally to follow such requirement. She said anyone doing so was violating their own integrity and would be open to lawsuit and ended that council should not need to discuss state law.

City Attorney Forrest Jacobi said that council discussing state law would be a waste of their time and the item was dropped.