Audit finds Cape Girardeau's finances in good shape, but recession taking a toll

Cape Girardeau's finances are in good order and the annual audit found very few issues of concern, the Cape Girardeau City Council was told Monday evening.

The council accepted the report from Beussink, Hey, Roe, Seabaugh and Stroder LLC that shows the city had about $522,000 in unrestricted general funds and $4.1 million in emergency fund reserves required by the city charter.

The report found none of what auditors call "significant deficiencies or material weaknesses" in accounting for or reporting on spending of city money, said Jeff Stroder, a partner in the accounting firm who oversaw the audit work.

The audit did, however, examine the city's budget and while it found that the city's financial position is good, the ongoing recession creates concerns.

In the year ending June 30, the city spent $487,037 more from the general fund than the $19.12 million in revenue the fund received. The shortfall was made up from unrestricted reserves and transfers from other funding sources. Sales tax receipts, the biggest source of money for the general fund, fell $135,831, or 1.56 percent, which was $347,774 less than budgeted.

The city's bank accounts hold enough money for existing claims and potential emergencies, the audit noted. "However, its financial condition or ability to provide enough reoccurring revenues to meet its reoccurring needs is still less than desirable," the report states. "Funding of equipment for the general and airport funds, excluding police, fire and various park divisions is still inadequate."

The audit also found that the city was not screening contractors for projects financed with federal grants to make sure the contractors were not barred from receiving federal funds. The city will begin checking those contractors against a list of banned companies beginning in January.

Overall, the audit report shows a well-run, financially stable city, Stroder said.

"It sounds like we got an 'A'" replied Ward 1 councilman John Voss.

rkeller@semissourian.com

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Pertinent address:

401 Independence St. Cape Girardeau, MO

__Cape Girardeau City Council action__

Monday

Cape Girardeau City Hall

401 Independence St.

__Action Items__

__Consent ordinances__

* Approved $47.6 million for capital expenditures for stormwater and parks improvement projects.

* Approved an ordinance establishing a 235-foot-long no-parking zone on the north side of Themis Street west of Louisiana Avenue.

* Authorized acceptance of permanent drainage easements from property owners on Albert Street for the purpose of drainage and stormwater maintenance.

__New ordinances__

* Authorized the acquisition of property for Lewis and Clark Parkway between LaSalle Avenue and County Road 618.

* Approved the record plat of Robinson Subdivision.

* Approved the record plat of River Bend Subdivision.

* Approved the record plat of Cape West Crossings-Phase II Amended.

* Approved the record plat of Cape West 13th Subdivision.

* Approved the record plat of a resubdivision of lots C19, C20 and C21 of The Highlands at Dalhousie-Phase III.

* Amended the city code to require property owners to mow grass and weeds on city right of way or easements abutting their property.

* Authored the issuance of not to exceed $1 million principal amount of Waterworks System Revenue Bonds Series 2010 for extending and improving the city's waterworks system; prescribing the form and details of the bonds and the agreements made by the city to facilitate and protect bond payment and prescribing other related matters.

__Resolutions__

* Authorized the city manager to execute an additional services letter of agreement with Glatting, Jackson, Kercher, Anglin Inc. for branding services for downtown Cape Girardeau.

* Authorized the city manager to execute an agreement with 4-Sight Counseling Inc. to provide housing counseling and operation assistance regarding the Neighborhood Stabilization Program.

* Authorized the city manager to execute a demolition contract for $3,860 with J. W. Transport LLC. to demolish a home at 1004 Hickory St. and clean up a site at 837 N. Main St.

* Expressed and confirmed support for the Clean Air Action Plan.

* Authorized the city manager to execute an agreement to broadcast and record Cape Girardeau City Council meetings with SEMO Video Productions LLC.

__Appointments__

* Appointed Sam Blackwell and Justin Albright to the Airport Advisory Board.

__Liquor licenses__

* Conditionally approved of a retail liquor by-the-drink and Sunday sales license for PHC Cape LLC, d/b/a The Pasta House Co., 2406 William St., Stephen Welkener, managing officer.

* Approved of a change in type of liquor license to original package, Sunday sales and wine tasting for Sam's East Inc., d/b/a Sam's Club No. 6479, 232 Shirley Drive, Lorene Samson, managing officer.

__Other__

* Accepted the annual city audit prepared by Beussink, Hey, Roe, Seabaugh and Stroder LLC for the fiscal year ending June 30, 2009.

* Set a public hearing for Jan. 19 on the request of Jeana Schoenher for a special-use permit to operate a photography business at 3601 Old Hopper Road.