January 7, 2016

City approves EDC budget, eyes water rate hike

By Suzanne Werre
Editor

Before even tackling any new business at Monday’s city commission meeting, Underwood’s city commissioners found themselves transferring money from one of the city funds to another, rather than cashing in some CDs to make up for year-end deficits.

"You’re not in the hole. You don’t have the money in checking, you just have to make a transfer," said City Auditor Diane Schell, as commissioners discussed whether to simply make a transfer from one account that was going to have to be closed because of legislative mandate, or to cash in some CDs to cover the deficit, which could cause a penalty if the CDs weren’t due yet.

The commissioners agreed to transfer $255,000 from the sales and use to cover shortages, including $170,000 for the water, $60,000 for sewer, $5000 for the cemetery fund, for the $20,000 highway distribution.

"You had 21 water main breaks last year," noted Schell, and the city didn’t transfer anything last year to take care of those additional expenses, so they’re playing catch-up because of those breaks.

The commissioners also closed out several different accounts, rolling those funds into the general fund, which was mandated by legislature in its last session.

Following the transfers and some closures, the commissioners approved the financial report.


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