July 23, 2014 at 2:10 p.m.
Cash flow an issue (03/21/08)
Redkey Town Council
By By ROBERT BANSER-
REDKEY - Officials were once again cautioned to keep a close eye on spending at Thursday night's town council meeting here.
Both town council president Doug Stanley and clerk-treasurer Sandy Kirby pointed out that during the first two months of the new year, revenues were not keeping pace with expenditures in both the water and sewer utility operating funds.
Following the meeting, Kirby said that contributing factors to the shortfalls were unanticipated equipment repair needs in both departments that called for immediate attention.
They added that overall while there were still balances in the town funds and Redkey's financial picture had improved dramatically over the past few years, the current situation was still something to be watched carefully. During the first two months of 2008, water utility operating fund expenditures have totaled $28,800, compared to less than $28,400 in revenue. In the sewer operating fund, expenditures have totaled $35,200, compared to $29,700 in revenue.
In both the water and sewer utility operating funds, more money is being spent than being taken in, and "this is a trend we want to reverse," Stanley said.
Also Thursday, Kirby proposed passage of a fund transfer resolution to ease current cash-flow problems. The resolution called for borrowing $50,000 in currently uncommitted sewage separation funds from that account and placing them in the general fund to meet payroll and other expenses.
Council members unanimously approved the resolution calling for re-payment to the sewage separation fund by the end of 2008.
Kirby said that the town will not receive its next tax draw until June when this temporary cash-flow problem should be alleviated.
In other business Thursday night, council members:
•Listened to a proposal from Nathan Cole of the Redkey Sons of the American Legion chapter, asking permission to let the Sons of the American Legion be responsible for maintenance of the town's Pioneer Cemetery, where many war veterans and early settlers of the community are buried.
Stanley said he thought this was a good idea, but insurance liability matters would have to checked first.
Stanley proposed waiting until the next town council meeting on April 17 to take formal action on the plan.
•Noted that the town's application for a $500,000 state grant for water system improvements was filed on March 14 with the Indiana Office of Community and Rural Affairs, and a decision should be made in the next few months.
Councilman Phil Philebaum said that he had talked recently with Charles Leary, vice president of Leary Construction which is the firm which repaired the town's water tower tank last year, and was told that the bottom of the tank is "dangerously" thin due to pitting and other problems. The bottom portion of the 90-year-old tank is one-eighth of an inch thick or less and some of the parts which need to be replaced on the tank are no longer being made, Philebaum said.
The councilman said he brought up this subject in response to comments made at previous council meetings, suggesting that it might be better to repair the tank, rather than replace it entirely as proposed in the grant application.
•A contract for mowing town property this year, including park and ball diamond areas, was awarded to Redkey area residents Robert Bicknell and Amy Grady who submitted the lowest of three quotes for the work. The price was $595 a month during the growing season, starting in April with Bicknell and Grady supplying the equipment and the town furnishing gasoline. The other two quotes were based on a cost per each time mowed figure, varying from $500 to $600 per mowing, under the same conditions of the contractor supplying the equipment and the town furnishing the gas.
Bicknell-Grady did the work last year, and the vote to award them this year's contract was unanimous.
•Heard a report from Fire Chief Randy Young that if Saturday morning's weather is bad as predicted, the town's annual Easter Egg event will be switched from the Redkey Elementary School grounds to inside the Redkey Fire Station where treats will be handed out to local children.
•Learned that the Redkey Volunteer Fire Department was trying to raise funds to purchase a thermal imaging camera which would be used to help with firefighting efforts and locating children who are lost in rural cornfield areas.
•Approved a proposal from Young Builders of Redkey to construct an enclosure to shield wastewater treatment equipment at the sewage plant from cold weather at a cost of $2,675.
•Agreed to seek quotes on upgrading insulation in town hall to save money on heating bills.
•Approved second and final reading of an ordinance to increase the charge for Redkey Police Department accident reports to $5, and the cost of having the police department make a vehicle identification verification report to $5 also.
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Both town council president Doug Stanley and clerk-treasurer Sandy Kirby pointed out that during the first two months of the new year, revenues were not keeping pace with expenditures in both the water and sewer utility operating funds.
Following the meeting, Kirby said that contributing factors to the shortfalls were unanticipated equipment repair needs in both departments that called for immediate attention.
They added that overall while there were still balances in the town funds and Redkey's financial picture had improved dramatically over the past few years, the current situation was still something to be watched carefully. During the first two months of 2008, water utility operating fund expenditures have totaled $28,800, compared to less than $28,400 in revenue. In the sewer operating fund, expenditures have totaled $35,200, compared to $29,700 in revenue.
In both the water and sewer utility operating funds, more money is being spent than being taken in, and "this is a trend we want to reverse," Stanley said.
Also Thursday, Kirby proposed passage of a fund transfer resolution to ease current cash-flow problems. The resolution called for borrowing $50,000 in currently uncommitted sewage separation funds from that account and placing them in the general fund to meet payroll and other expenses.
Council members unanimously approved the resolution calling for re-payment to the sewage separation fund by the end of 2008.
Kirby said that the town will not receive its next tax draw until June when this temporary cash-flow problem should be alleviated.
In other business Thursday night, council members:
•Listened to a proposal from Nathan Cole of the Redkey Sons of the American Legion chapter, asking permission to let the Sons of the American Legion be responsible for maintenance of the town's Pioneer Cemetery, where many war veterans and early settlers of the community are buried.
Stanley said he thought this was a good idea, but insurance liability matters would have to checked first.
Stanley proposed waiting until the next town council meeting on April 17 to take formal action on the plan.
•Noted that the town's application for a $500,000 state grant for water system improvements was filed on March 14 with the Indiana Office of Community and Rural Affairs, and a decision should be made in the next few months.
Councilman Phil Philebaum said that he had talked recently with Charles Leary, vice president of Leary Construction which is the firm which repaired the town's water tower tank last year, and was told that the bottom of the tank is "dangerously" thin due to pitting and other problems. The bottom portion of the 90-year-old tank is one-eighth of an inch thick or less and some of the parts which need to be replaced on the tank are no longer being made, Philebaum said.
The councilman said he brought up this subject in response to comments made at previous council meetings, suggesting that it might be better to repair the tank, rather than replace it entirely as proposed in the grant application.
•A contract for mowing town property this year, including park and ball diamond areas, was awarded to Redkey area residents Robert Bicknell and Amy Grady who submitted the lowest of three quotes for the work. The price was $595 a month during the growing season, starting in April with Bicknell and Grady supplying the equipment and the town furnishing gasoline. The other two quotes were based on a cost per each time mowed figure, varying from $500 to $600 per mowing, under the same conditions of the contractor supplying the equipment and the town furnishing the gas.
Bicknell-Grady did the work last year, and the vote to award them this year's contract was unanimous.
•Heard a report from Fire Chief Randy Young that if Saturday morning's weather is bad as predicted, the town's annual Easter Egg event will be switched from the Redkey Elementary School grounds to inside the Redkey Fire Station where treats will be handed out to local children.
•Learned that the Redkey Volunteer Fire Department was trying to raise funds to purchase a thermal imaging camera which would be used to help with firefighting efforts and locating children who are lost in rural cornfield areas.
•Approved a proposal from Young Builders of Redkey to construct an enclosure to shield wastewater treatment equipment at the sewage plant from cold weather at a cost of $2,675.
•Agreed to seek quotes on upgrading insulation in town hall to save money on heating bills.
•Approved second and final reading of an ordinance to increase the charge for Redkey Police Department accident reports to $5, and the cost of having the police department make a vehicle identification verification report to $5 also.
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