City of theVillage of Clarkston received high marks on an audit, although Mayor Joe Luginski previously said the way the city spent money was illegal.
At the meeting, Luginski was missing again, an issue he previously said he would improve.
City officials were praised by auditor Rana Emmons from PSLZ, LLC, a certified public accounting and auditing firm, during an audit presentation at the Dec. 8 city council meeting.
Emmons also acknowledged the city paid down debt this year as well as received a $167,000 grant for new DPW trucks.
Several audience members and residents praised the city for their work.
‘The audit was a team effort and the city manager, treasurer and clerk were very helpful and accommodating,? said Emmons.
She added city staff were very professional and the city continues raising the bar.
‘I give a lot of credit to the city manager,? said Emmons about Manager Carol Eberhart. She added it was a pleasure to work with Eberhardt, Treasurer Sandra Barlass and Clerk Sandy Miller.
Emmons said the city’s 30 percent fund balance of about $247,011 is a healthy fund balance and considered average for a municipality.
Councilman Richard Bisio has questioned the size of the fund balance as well as the capital improvement fund. He was the only one to ask questions about the audit.
‘I criticized use of the capital improvement fund because it is not functioning as required by the resolution that established the fund,? he said.
Bisio added a prioritized list of projects was supposed to be created for the capital fund but did not happen. He said instead, funds were spent without prioritizing projects and council approved spending on a case by case basis by transferring money from the general fund.
‘This amounts to just spending down the general fund balance on projects as they come along,? he said, adding the council persisted in regularly dipping into the fund balance to pay for otherwise unbudgeted one-time expenses.
Bisio has also questioned the fund balance.
‘I have, in the past, advocated a refund to the taxpayers of part of these accumulated surpluses and relied on information that a 15-25 percent fund balance is adequate,? he said.
Emmons said municipal fund balances differ, but any money saved in the fund balance is what would carry the city through in a bad emergency if no money came in. Emmons said the fund balance is where it should be.
The City of the Village of Clarkston includes about 440 housing units, according to the Southeast Council of Governments. That means about $561 per household is held in the 30-percent fund balance.
Previously, controversy arose after Luginski said the auditor informed the city how they were spending money was illegal and any money spent must be budgeted first.
Luginski said once council makes a resolution to spend the money, the state of Michigan considers it already spent.
Miller said the auditor informed staff the way money was spent and approved for projects is considered illegal.
“When we approve projects not even on the agenda, it’s the wrong way of doing things,” she said.
Miller added the way money is spent for projects must first be allocated from the appropriate fund in the budget. “We need to know where the money is coming from before it is approved,” she said.
During a Sept. 8 meeting, examples of wrongdoing was discussed, including approval to pave Womphole Drive and plans for a bridge approved on the same day residents donated money for the project.
Miller said paving Womphole was not on the agenda, but discussed by council before the project was approved with the stipulations it would cost $2,000 or less.
Council discussed projects and voted on them at the same city council meeting, without knowing how they would be funded.
Luginski also said city committees need to meet more often, present reports and know what projects they want to complete ahead of time rather than having council approve projects the same day.
He insisted the errors were not intentional.
Eberhardt had said city staff will work harder to ensure the accounting of various city business before the meetings.
During the presentation, the auditor never mentioned illegal activities.