Council Meeting Minutes
June 09, 2015 Final Draft Subject to Council Approval
Special Council Meeting Minutes
The meeting was called to order at 11:00am. Mayor Robert Crabtree, Vice Mayor Guy Owen and Councilmembers John Garland, Bob Allmond and Roger Carlton were present. Town Administrator Peggy Carver, Town Clerk Mandy Millsaps and Town Attorney Ellen Davis were also present.
Three representatives from the Department of State Treasurer representing the Local Government Commission were present for the Special Meeting; Sharon G. Edmundson, CPA and Director, Fiscal Management Section, Julie Cubeta CDGB Unit Supervisor and Melinda Canady Assistant Director, Fiscal Management Section.
New Business: Local Government Commission to discuss the FY 2013/14 Audit. The Town of Lake Santeetlah received a letter dated February 23, 2015 from the Department of State Treasurer regarding their analysis of the FY 2013/2014 Audit. The Town of Lake Santeetlah responded to this letter addressing each item of concern specifically.
Sharon Edmundson addressed the decrease in fund balance for the Town of Lake Santeetlah over the last three years. She discussed how the Local Government Commission calculates fund balance and made reference to General Statute 159-8. Roger Carlton stated that the funds spent by the Town in FY 2013/2014 were used for specific Capital Outlay projects. Roger Carlton asked if the response letter from the Town of Lake Santeetlah was sufficient and if there were any other questions that they have for the Town. Ms. Edmundson stated that she would rather see fund balance used for what the Town of Lake Santeetlah used it for rather than to just replace operating cost and also stated that she was pleased with the efforts of the Town of Lake Santeetlah and the responses to the audit concerns that the Local Government Commission had. Mr. Carlton asked if the audit concerns presented from the Local Government Commission to the Town would in any way impair the funding of the Sewer Feasibility Study if the Town decided to build a sewer system. Ms. Edmundson stated that the Local Government Commission would ultimately be looking to see if the proper actions were being taken to correct issues. Ms. Edmundson also stated that if contacted by the Local Government Commission she would have no problem stating that the Town of Lake Santeetlah has provided sufficient documentation showing where corrective action has been taken in regards to the audit and has no problem with the steps taken by the Town of Lake Santeetlah regarding fund balance.
Ms. Edmundson also addressed specific questions presented by the Council regarding internal controls and tax collection. Ms. Edmondson discussed and reviewed the required signatures for checks and stated that one of the signatures must be the Finance Officer or Town Council authorized Deputy Finance Officer and confirmed that because the Town’s population is below 5,000 people that the Mayor can also serve as Finance Officer. Town Administrator Peggy Carver stated that property taxes for the Town are now being collected by Graham County and that this seems to be going well. Ms. Edmundson stated that the budget must reflect the actual percentage of taxes collected during the previous year.
Ms. Edmundson asked if the Town has an auditor for FY 2014/15. Town Administrator Peggy Carver confirmed that the Town has signed an audit contract with Ken Shuckers and Joe Truchetti for the FY 2015/16 audit. Ms. Edmundson asked who signed the audit contract. Town Administrator Peggy Carver stated that Mayor Robert Crabtree signed the audit contract.
Ms. Edmundson asked how the Fy 15/16 budget is progressing. Town Administrator Peggy Carver stated that the budget is progressing well and provided a copy of the proposed budget at three different millage levels. Mayor Crabtree stated that the millage rate will be discussed at the June 11, 2015 Planning Meeting and a decision would be made at the June 16, 2015 Council Meeting.
Councilmember Roger Carlton asked what the final outcome of this meeting would be. Ms. Edmundson stated that the Local Government Commission will send a follow-up letter summarizing the discussion of this meeting and that no other action will be required from the Town of Lake Santeetlah. She also stated that for the purposes of next year that The Town of Lake Santeetlah should not expect a meeting with the Local Government Commission but about every three years we would receive a letter that reminds smaller units of government about the required separation of duties.
Mayor Crabtree thanked the Local Government Commission for coming.
Meeting Adjourned at 11:45am
* The February 23, 2015 letter from the State of North Carolina and the Town’s Response letter to the State of North Carolina pertaining to the FY 2013/14 audit are attached to these minutes.
* All Attachments are filed at Town Hall