Council sees new monthly financial format

By Mike Odom
Staff Writer
Posted 6/11/08

FAIRHOPE, Ala. — At Monday’s council meeting, the city treasurer announced a change in the format of the accounts payable report presented for approval each month to the City Council.

“This is in the spirit of being more open,” City …

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Council sees new monthly financial format

Posted

FAIRHOPE, Ala. — At Monday’s council meeting, the city treasurer announced a change in the format of the accounts payable report presented for approval each month to the City Council.

“This is in the spirit of being more open,” City Treasurer Nancy Wilson said. “This (report) includes every dollar that went out in Fairhope.”

Wilson said the title of the report has been changed from “Accounts Payable” to “Accounts Payable/Cash Disbursements” to reflect the change in items included in the report.

She said the old format did not include some items that the council had previously voted on or approved.

“This is one of the largest accounts payable that I can ever recall,” Council President Bob Gentle said.

The report showed that funds needed to pay the city’s bills for May were a total of $4,107,448.

He said that was almost twice as much as the usual bills for most months.

“That is a very valid point,” Wilson said.

She then explained that by including every single cash disbursement, the new report more accurately reflects the actual cash flow each month.

The report showed the following accounts payable/cash disbursements in the following categories: general, $1,619,557; gas, $449,298; electric, $1,180,986; water and sewer, $458,730; golf, $135,653; and capital projects, $262,799.

One large item not included in past monthly reports was payroll, said financial reporting manager Rose Fogarty.

The amount for payroll in May was $317,730, according to the report.

Fogarty said that in the past overall payroll was approved for the year at the beginning at the year, but that the monthly disbursement of payroll was not included on the monthly report. Other items such as bid contracts already voted on at earlier council meeting were also not included in past reports, she said.

“We’re trying so hard to make everything understandable to everyone,” Fogarty said. “The council might understand these things, but the public might not. Governmental accounting is complicated.”

Wilson said the new format provides a better understanding of the the city’s monthly cash flow relative to its annual budget.

“A million a week is what’s budgeted,” she said, noting that if the report shows much more than $4 million a month, then that would be a warning signal.

The report includes an attachment showing every check written by the city during the month.

The council voted to approve the bills paid in the report, with Gentle abstaining. He said one disbursement from the city went to the company he works for, although in a different department.

In other business, the council:

• Heard from the Alabama Chapter of the American Planning Association which presented its 2008 “Distinguished Leadership Award for an Elected Public Official” to Mayor Tim Kant.

Diane Burnette, with the South Alabama Regional Planning Commission and vice president of the APA, presented the award to Kant at Monday’s council meeting. The award was officially presented to him during the annual meeting of the Alabama Chapter of the APA last month in Birmingham.

Kant was nominated for the award by the city planning department. The nomination notes that explosive growth in the past five years led Kant to see the need to evaluate the city’s existing development codes.

“He took a serious political risk with the development community by imposing a six-month moratorium on new subdivisions,” said Gregg Mims, city planning director. “In fast-growing Baldwin County, Kant was the first mayor to take this step.”

Mims was hired by Kant approximately two years ago.

• Authorized Kant to sign a grant application for the Fairhope Airport Authority that will result in a disbursement of $95,111 from the Federal Aviation Administration to the Fairhope airport.