10-13-2008 Council Minutes - Laserfiche WebLink

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MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, October 13, 2008 7:00 o'clock p.m. (3. 2007 COMPREHENSIVE ANNUAL FINAIVCL4L REPORT, Continued) McMillan stated the Council has been discussing updating the City's financial software, and asked whether there is a particular type of software that the auditor would recommend. Malloy stated there are a number of different systems that are available and that he could obtain some input from their other clients on the advantages and disadvantages of the software they utilize. Malloy stated he basically would recommend a fund based accounting software. Malloy stated submission of financial data to their office should also be timelier, and noted that the information was received several months past the deadline. Malloy noted Staff was short- handed this year and that there was a turnover in Staff, which probably has contributed to some of these issues this year. Murphy asked what an out -of -state travel policy would entail. Bremer stated it would outline the costs that would be reimbursed and the personnel who could attend certain functions. Malloy stated an additional comment relates to depositing of receipts in a timely manner, and reported that a number of receipts were deposited 10 to 12 days after receipt, which should be made more current. 0 Malloy noted that the City of Orono does not receive local government aid but that the City has a good, • solid tax base, with a tax rate of 15.3 percent in 2006 and 14.3 in 2007, with the average comparable city being approximately twice that rate. Malloy stated the City's charges for various services are higher than average, primarily due to fire and police protection services. The debt service of the City of Orono is considerably less than the average city. ,Malloy noted the City experienced approximately a $500,000 increase in revenues from last year but that it receives very little intergovernmental aid. Malloy stated overall the City is in good financial condition. Malloy commented that typically municipal golf courses do not operate at a profit and recommended that the City look at its options regarding the golf course and how it should be funded in the future. White noted the finance director took over the duties of the city administrator for a period of time this year, which resulted in his time being stretched rather thin. The City has now hired a full -time city administrator, which should result in the finance director being able to devote more time to his financial duties. Malloy encouraged the City to complete its financial records in an expedient manner in order to maintain proper overview of their finances. White noted the City of Orono has one of the lowest tax rates of the local cities at approximately 13 percent. McMillan acknowledged the City has had some personnel shortages, which did contribute to the issues with the finances. The City Council took no formal action on this item. PAGE 2 of 11 •