The Clintonville Common Council held off Monday on a decision regarding the 2015 budget after it was discovered the fund balance figures were incorrect.
On Nov. 18, the council approved a budget that includes a total tax levy of $1,981,667 with a tax rate of $8.62 per $1,000 of assessed valuation which is an increase of four cents over the rate of the previous year. An owner of an $80,000 home will see an increase of about $3 on his or her city tax bill.
To balance the budget, the council approved taking $176,102 from the undesignated fund balance and included the provision that the Finance Committee, departments, and administration work to replace the fund balance by April 1, 2015.
Since that meeting, interim City Administrator Chuck Kell found the actual undesignated fund balance at the end of 2013 was not $1.7 million but $1,087,732.
At Monday’s special meeting, Kell recommended the council do nothing until the 2014 audit is prepared and analyzed. According to Kell, the council can always decide at a later date to authorize a transfer of funds from the Fund Balance to cover additional capital expenditures in 2015 and to replenish the Capital Fund for the 2016 city budget.
Kell told the council that something didn’t look right when he found the capital funds had been overspent. In checking with the auditors, it was found $488,000 that had been received as a loan for the move of the police department had been put in the fund balance.
Acting Mayor Jeannie Schley asked Kell if moving that money was something the auditors would do without telling someone. Kell said he believed someone had been informed.
By finding the money, Kell said the capital fund now looked much better, but the undesignated fund balance was not as large as was first thought.
Kell suggested that the council always have a report from the auditor and pay more attention to the finances. He noted that things could have been a lot worse.
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