1991-11-21 CC Minutes Special
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CITY OF ALBERTVILLE
TRUTH IN TAXATION HEARING
November 21, 1991
Albertville City Hall
7:30 PM
PRESENT: Mayor Jim Wal sh, Counci lmen Mike Potter, Duane
Berning, Donatus Vetsch, and Mark Barthel, City Attorneys Mike
Couri and Bill Radzwill, City Auditor Don Zierke, City Clerk Linda
Houghton
Mayor Wal sh call ed the meeting to order. Copies of the
proposed 1992 budget and budgets summaries were available for the
audience to review.
Mayor Walsh explained to the audience that the Council had
spent many hours attempting to put together an realistic and
accurate budget. The Council also explained the financial position
of the City in the letter sent to all residents. Mayor Walsh then
opened the meeting for questions from the audience.
steve Panuska questioned whether the levy for 1993 taxes would
go down because there would be no IRS penal ties and interest
payments. The Council stated they could not guarantee lower levies
for next year, because some of the I evied funds are going to
capital improvements that are necessary and have not been levied
for in previous years. Mayor Walsh stated that this Council will
pass a reso I uti on that requi res the funds I evi ed for capi tal
improvements can be spent only on that improvement, without action
of the City Council. The audience was assured that the past taxes
have been paid and current tax payments are being made regularly
and on time.
Carl a SuI 1 i van asked if the Counci I has considered a debt
recovery plan. She questioned whether the legal and accounting
firms had advised the Council about the problems and how to correct
them. Attorney Radzwill said his office is still trying to decide
if there was non-feasance or malfeasance by city employees, if the
City had received inaccurate advice, or if good advice was just not
followed. Radzwill also added that the City Council is continuing
to look into the economic feasibility of attempting to recover
funds through its Errors and Omissions insurance. Radzwill
stressed that investigations have shown that no ci ty money is
missing and none of the Ci ty' s funds were used for non-ci ty
expenses.
Tom Shepherd commended the Counci I on the steps they have
already taken to correct the problems. He and Tim Philips
questioned who was responsible for the loss of income from the
failure to invest the City's monies. Mayor Walsh said the Council
itself is ultimately responsible for spending and investing the
City's funds.
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Sue Tohal asked how long the present Counci I had been in
control. Mayor Walsh introduced each of the Councilmen and the
date of their election/appointment to the Council.
Ken Weber asked. Councilman Vetsch how all the problems
addressed in the letter to the City residents were addressed at the
time of occurrence. In answer, Mayor Walsh stated there may have
been information that the Council wad not made aware of.
Steve Panuska asked for clarification of HACA and Disparity
Reduction Aid. Tom Shepherd questioned how secure these amounts
from the state were. Radzwill assured the audience the amounts
listed on the revenue side of the budget were accurate and the City
could count on receiving those amounts.
Mary Ann Andrea questioned if accurate records of the meetings
are being kept at this time. She also questioned whether the
Council was sure that in the future all management letters are
received by the Council members. The Council assured the audience
that internal controls are now in place in the accounting process,
accurate, up-to-date reports are being presented to the Council,
and the Council will be passing a resolution that capital
improvement levies can only be spent for specified improvements.
Bridget Berning made the comment that there should have been
a system of cross checking in the previous administration. Dave
Vetsch pointed out that he feels the City Council hired a person
that they thought capable but it didn't happen that way.
Tom Shepherd questioned if the Council felt that the capital
outlays budgeted for the fire department were enough to provide
continuous, adequate fire protection for the City.
Bertha Paulson questioned if interest on the penalties due to
the IRS are still accruing. Don Zierke explained that although the
pena I ti es are no longer accruing, interes t on them is s ti II
accruing. When questioned whether extensions were filed on the
delinquent payroll taxes, Zierke explained that there are no
extensions that could be filed.
Rick Wacker questioned what wages for City employees have been
set. Mayor Walsh said that wages for 1992 have not officially been
set, but an increase of 3.5% and about 7% have been pro[posed for
the maintenance department.
Vetsch made a motion to adopt RESOLUTION ADOPTING THE FINAL
ALBERTVILLE 1991 TAX LEVY, COLLECTIBLE IN 1992. Barthel seconded
the motion. All voted aye.
Barthel made a motion to adopt RESOLUTION ADOPTING THE FINAL
ALBERTVILLE BUDGET FOR 1992. Pot ter seconded the moti on. All
voted aye.
Ron Becker questioned how much he could expect his property