East Central Reporter

City of Flora City Council met Oct. 24.

Here are the minutes provided by the council:

OPENING CEREMONIES

At 4:30 p.m., Mayor Rick Slaughter called the Special Council Meeting of the City of Flora to order and City Clerk Kaci O'Dell called roll. Present were Mayor Rick Slaughter, Commissioner Linda Spicer, Commissioner Jeremy Henderson, Commissioner Phil Wiley and Commissioner Jim Fehrenbacher.

Others in attendance were City Attorney Bob Coble, City Administrator/Economic Development Director Mike Stanford, Chief of Police Jeremy Ruger, City Clerk Kaci O'Dell, and City Treasurer Kim Adair. Superintendent of Public Services Toby Rinehart and Building and Zoning Official Chad Bayles were absent. Two guests were present with one being CPA Arlynne Davis.

Mayor Rick Slaughter led the Pledge of Allegiance and Commissioner Phil Wiley offered the Invocation.

PUBLIC COMMENTS - None

APPROVAL OF AGENDA

A MOTION TO APPROVE THE AGENDA FOR THE OCTOBER 24, 2024 SPECIAL COUNCIL MEETING FOR THE CITY OF FLORA WAS MADE BY COMMISSIONER WILEY; SECONDED BY COMMISSIONER SPICER.

Vote: Yes - Slaughter, Spicer, Henderson, Wiley, Fehrenbacher

No - None

Abstain - None; Absent - None

REGULAR BUSINESS

Mayor Rick Slaughter introduced Arlynne Davis, CPA at Botsch and Associates who began the presentation of the City of Flora Audit for Fiscal Year 2024. Davis started with the Independent Auditor's Report, which is an unmodified opinion of the Auditor. It does not say it's exact, but that the financial statements are reasonable and materially correct.

Davis then moved on to the Independent Auditor's Report on Internal Control and Compliance. Noting, she did not find any problems with internal control.

Next, Davis spoke about the Management's Discussion and Analysis portion of the Audit. This is a synopsis of the operations, details of the financial portion of what happened in the fiscal year in a dialogue type format.

Moving on to Basic Financial Statements, Davis touched on the balance sheet. Davis pointed out the City's total assets, liabilities, deferred inflows, and the fund balance. She did state that the City has a very good fund balance.

Davis then moved to the Schedule of Revenues, Expenditures, and Changes in Fund Balances. She explained that this is basically an income statement that is summarized. Details for this summary can be found beginning on page sixty-eight (68). Revenues and expenses are broken down by line item, including original budget, final budget, actual, and variance.

The Statement of Net Position - Proprietary Funds was next. Davis highlighted how this is set up. This statement includes: current assets, noncurrent, deferred outflows, current liabilities, noncurrent liabilities, deferred inflows, and the net position for the following funds: electric, gas, water, sewer, and solid waste. The Statement of Revenues, Expenses, and Changes in Net Position was explained next. This displays the operating revenues, operating expenses, operating income, nonoperating revenue, net income and change in net position for the funds.

Davis then explained that Notes to Basic Financial Statements are required disclosures within an audit. As auditors, they have to disclose accounting policies, retirement details on fixed assets, and depreciation. These notes give the reader greater detail on these items.

As Davis closed on her presentation she announced that she is always open to questions before, during, and after the audit.

Commissioner Phil Wiley asked Davis if she thought the City's accounting practices are in good standing. She believes the City is following good practices and guidelines. Although there is still some tweaking with the loss of Abbie and Kim coming on board during the past year. This is understandable and she knows that things won't be perfect. Davis stated the City's accounting system is very good and internal control is very strong. Davis commented that she is required to report in the notes if she sees anything major.

Commissioner Jeremy Henderson questioned the amount for video gaming tax under Financial Highlights - Changes in Major Revenue Sources, noting a big decrease. City Administrator/Economic Development Director Mike Stanford answered that the video gaming tax did increase from last year and it went towards the Police Pension Fund.

Henderson then stated he noticed on the General Fund that the inventory amount stayed the same as last year and asked what inventory was in the General Fund. Davis answered that it was the Street Department inventory. She stated she did not receive an inventory from the Street Department this year, and said it would not have varied much materially.

Commissioner Henderson asked if the transfers between the two TIF Funds were all continuous projects and if the new TIF owes the old TIF. City Administrator/ Economic Development Director Mike Stanford answered that it is now possible to transfer between TIF funds. It was for all continuous projects and the new TIF does not owe the old TIF. Commissioner Henderson commented that interest is going over 5% and he is happy with that.

Commissioner Spicer thanked Davis for working with transition of staff and let her know that her efforts are valuable and helpful to the City.

A MOTION TO APPROVE THE APPROVE FISCAL YEAR 2024 CITY OF FLORA AUDIT WAS MADE BY COMMISSIONER WILEY; SECONDED BY COMMISSIONER FEHRENBACHER.

Vote: Yes - Spicer, Henderson, Wiley, Fehrenbacher

ADJOURN

No - None

Abstain - None; Absent - None

At approximately 4:50 p.m., with no further business to discuss, Mayor Rick Slaughter requested a motion to adjourn.

COMMISSIONER SPICER MADE A MOTION TO ADJOURN; SECONDED BY COMMISSIONER FEHRENBACHER. COUNCIL MEMBERS CONCURRED AND MAYOR RICK SLAUGHTER DECLARED SAID MEETING ADJOURNED.

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