Cash vs. Accrual Accounting Discussed at Morrison City Council

By LYNNETTE FORTH | For The Prairie Advocate News

MORRISON – In the absence of Mayor Roger Drey and Melanie Schroeder, Dave Rose and Jim Wise served as as Mayor pro-temp and clerk, respectively, for the September 24th meeting of the Morrison City Council. Scott Connelly was present serving in place of the vacancy left by Alderman Ron Kallemeyn in Ward four.

No public comments were heard, and council members heard from Mrs. Davis who was asked by Mayor Drey to respond to questions regarding cash versus accrual accounting. Davis reported that she had contacted a representative from Wipfli about converting to cash accounting, and was told that the City would need to have a reason to convert, and that the State Comptroller would need to be contacted.

Davis asked the council to decide if they would want her to move forward with the change. Sarah Thorndike questioned, “Is there any reason in your mind that one would be better than the other?”

Treasurer Ernest Huling responded, “Going to a cash basis is the old way. Accrual is the only way to go.” No action was taken.

Mick Gronewold of Fehr Graham and Carl Fischer of Baxter and Woodman presented an update to the council on the Water Waste Treatment Plant progress. Fischer reported that council members will need to decide if they want to upgrade the existing system or build a new one.

Gronewold stated that a study of inflow and infiltration is the first step to finding problematic areas, with the most problematic being basin #2 right in the center of the community. Recommendations would include additional investigation in basins #2 and #3, smoke testing of sewers, breaking sub basins down, and considering the installation of a sanitary system in the future, at the approximate cost of $630,000.00.

Council members were told that they need to make a decision on where to go from here by the October 9th meeting. Michael Blean asked, “Will the rate study be done by October 9 meeting?”

Gary Tresenritter responded “yes.” Tresenritter also advised that test pumping on Well #5 had begun last week, with smoke testing to be started in basin #2. “Everything looked good. The leak survey is finished, and they have found several leaks.”

The consent agenda included:

- September 10 2012 regular session minutes (approved)

- September 17, 2012 special session minutes (approved)

- Bills Payable-$44,644.35 (approved)

- August 2012 Treasurer’s report

- Pay request #7-DJ Sickley Construction Well #5 (approved)

- Request for parade permit-Morrison High School for Homecoming Parade (approved)

- Request for one day special and limited use permit liquor license for Fat Boyz (approved)

- Set Trick or Treat Date and Time-October 31st 4-7 p.m. (approved)

Items removed from the Consent Agenda included a Change order-Layne Christensen Company-$26,707.65 (approved); Pay request-Layne Christensen Company-$299,405.25 (approved); and Operation and Maintenance agreement with Odell Library (postponed to next meeting).

Alderman Marti Wood was concerned that the change orders for Layne Christensen do not state a specific projected time frame for repayment. Administrator Wise said, “The library board has approved the agreement as is. We could go back to the library board and ask if they want revisions made. We still have time.” Thorndike advised that the Library is having a fundraiser on October 6th.

Items for consideration, discussion, and information included an October 22 review of the personnel policy. Wise told council members that city staff would sit down and update the policy, and that it had not been updated since 1997.

On November 12, Fiscal 2013 Mid-year budget amendments will be discussed.

The meeting adjourned at 8:45 p.m. The next meeting is scheduled for October 9th.