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1 <br />1 <br />2002 -06 -27 City Council Minutes <br />Mayor Walter Parker called the meeting to order at 7 P.M. Council members present <br />were as follows: Jimmy Burke, Jack Youmans, Whitley Reynolds, Walter Crawford, <br />Jason Buelterman and Richard Barrow. <br />Parker said we only had two items on the agenda, the Budget adjustment and a request <br />for special event permit for entertainment at the North Beach Parking Lot on Labor Day <br />Weekend. Parker, said Gordon Vamedoe had asked him to get an idea of the council's <br />feelings for such an event. He probably would have a band and it would be for only 1 <br />day. Youmans and Crawford voiced concerns on behalf of the area residents as to traffic, <br />noise and safety, suggesting that maybe we should talk to some of the residents and get <br />their opinions. Parker said he would advise Vamedoe to apply for the special permit. <br />The next item was the budget adjustment. Parker called on Greg McLean, Finance <br />Director, for explanations. McLean said that some items were purchased and there was <br />no line item number in place due to the change in programs. Burke asked about the <br />vehicle line item and why it was over. McLean said there was some misunderstanding <br />regarding the type of lease plan from GMA. He also said some items purchased were <br />approved by council and were in the budget, and some items were not. These items were <br />approved for purchase by the previous city manager. Bob Thomson, current City <br />Manager, said this was not common practice and safeguards were in place to prevent this <br />in the future. Items of $500.00 required approval of Finance Director and items of <br />$5000.00 or more required bids be taken. Crawford said we need to draw the line now <br />and if unauthorized purchases are made in 2002, we need to notify the GBI and see if <br />criminal charges can be made. Reynolds motioned to approve the budget adjustment, <br />Barrow seconded. Vote was 3, Reynolds, Buelterman, and Barrow for, and 3, Burke, <br />Youmans, and Crawford opposed. Mayor Parker voted in favor, breaking the tie. <br />Under the budget items, the amount of $138,000.00 in the Water /Sewer A/R was <br />unreconciled. McLean said that in October of 2001, when he started work here, he could <br />see something was amiss and brought to the city manager's attention. He completed a <br />comprehensive study and determined that not as much water was used as in the previous <br />year, and, also not as much was collected for new water /sewer taps. McLean said he and <br />the auditor, Chris Lightle, agree that it was a combination of errors and lack of follow up <br />that probably caused $48,000.00. However, they say that $50,000.00 is something else. <br />McLean said that he is guessing, but that he feels that during the conversion to new <br />software, perhaps that wrong balance was used. He said it could be any one or more of a <br />number of things. All that studies and collection test support the smaller number, <br />indicating that this figure is overstated. McLean added that the $50,000 error could have <br />been avoided if the accounts had been reconciled regularly but were not. Lightle said <br />that, in his opinion, this is due to human error not theft. Lightle went on to say that he <br />had found no evidence during his audit to support any inappropriate action by any <br />employee. He agrees that he believes the accounts were overstated. When asked if we <br />could get weekly, monthly or quarterly reports to be sure everything was in balance, <br />