6/15/05 - Special
CARROLLTON TOWNSHIP BOARD
SPECIAL MEETING
Wednesday, June 15, 2005
Roll Call: Supervisor Kozara Present
Clerk Finazzi Present
Treasurer Riley Present
Trustee Stork Present
Trustee Dalton Present
There being a full board, Supervisor Kozara called the meeting to order at 6:04 p.m. Also in attendance: Police Chief Craig Oatten, DPS Superintendent Debby Lopez, DPW Foreman Dennis Anklam, Office Manager Irene Yeska and Assistant Office Manager Megan King.
Supervisor's Comments:
Supervisor Kozara introduced the board members, department heads and township auditor Lisa Renas from Rehmann Robson. He gave a brief history of the township water and sewer system, an explanation of the water and sewer rate handout (attached), and an overview of the current water and sewer infrastructure projects and the purpose of the Northwest Utility Authority (sewer disposal).
Auditor's Comments:
Ms. Renas answered questions from the citizen committee as submitted by Kathy TenWolde. (A copy of the question list is attached to these minutes.) Ms. Renas also explained her handouts (attached) showing the composition of the township's cash and investments and the water and sewer rate trends for the last five years.
Question and Answer Session:
Vaughn Perkins, 588 Nylon, questioned why he had to pay for new water mains when the water main on his street was old. Renas explained that the township's water and sewer rate structure is based on the entire township, not individual areas.
Raymond Jones, 3675 Jackson, questioned why the 2003 figures were not on the handout. Renas answered that there was a typo and that the figures had been included.
Jane Wolpert, 3042 N. Michigan, asked Renas if she was involved in last year's audit. Response: Not directly, but other staff from Rehmann Robson were. Ms. Wolpert asked if the township's financial status was healthy. Renas answered that without more information, she could not answer that question. Ms. Wolpert asked if the audit comments were available to the public. Response: Yes. The audit comments for the last five fiscal years were given to James Denno to share with the citizen committee. Ms.Wolpert asked if the township records were provided to the auditors or does the auditor come on site. Response: The auditors come on site and may pick and choose documents from township files and the township staff gathers information for them as well. Ms. Wolpert asked if there was a more comprehensive audit available. Response: A more comprehensive audit would include an audit of the internal controls, not the financial records. This kind of audit has never been recommended in the past.
Sue Baase, 4635 Venoy, asked if a bond would be issued to pay for the needed sewer repairs. Response: No, the repairs will be paid for by the ready to serve charge revenue.
Ms. Baase expressed her frustration with projects never being completed.
In regards to comments about water and sewer rate increases for last year, Supervisor Kozara asked Treasurer Riley to review his comments made at the meeting for acceptance of the 3/31/04 audit.
Riley read from the October 20, 2004 minutes:
Lisa Renas from Rehmann Robson Certified Public Accountants, was in attendance to give an overview of the Financial Statements for the Year Ended March 31, 2004. She fielded questions from the board and department heads.
Treasurer Riley stated that there had been a lot of controversy over the township raising the water and sewer rates. Some residents felt that the increase was not necessary. He asked Lisa, from an auditor's perspective, if she felt the increase was necessary. Lisa responded that the financial statements from the year ending March 31, 2004 indicated to her that the water and sewer funds were not covering their costs, which in turn means the township should have increased the rates for the fiscal year 2003-2004. Payne noted that the failure to increase the rates for two years in a row caught up with us. The result: the township had to make a significant rate increase for the fiscal year 2004-2005. Board discussion followed.
Vaughn Perkins, 588 Nylon, asked if the township could sue the City of Saginaw for over-charging for water. Answer: No.
It was board consensus to have the finance committee meet with Yeska, King and Renas to discuss a possible forensic audit of the water and sewer funds and to make a recommendation to the board.
Stork questioned why, in Renas' report for March 31, 2004, it states that the board declined to engage in a more detailed audit. Renas explained that that was a misstatement and the board can choose to have a more detailed audit done if they want to.
Kathy TenWolde, 1675 Hiawatha, asked Renas what percentage of the township's books she has looked at during an audit. Renas answered that she does look at the books and the amount that she looks at varies from year to year. Ms. TenWolde questioned why there were so many expense accounts. King reiterated to TenWolde that the list of expense accounts that were given to her may have included accounts that are no longer used. Because of record retention rules, these inactive accounts cannot be deleted from the computer software until seven years have passed with no activity.
Linda Kundinger, 1701 Hiawatha, asked if the list of general ledger numbers that TenWolde received included the inactive accounts. Response: Yes.
Karri McCaslin, 2997 Jackson, strongly objected to Yeska's comment that the township hires professionals to do the job. [Yeska's statement was in response to individual public comments that they (the people) don't or can't understand the township's accounting system.]
Sharon Fritz, 3363 Terry, stated that she had been to several township board meetings and all accounts payable are looked over and questions are asked to the department heads.
Mark Myczkowiak, 3566 Church, stated that he had been on the Recreation Committee several years ago and that he had trouble understanding the budget; however, each year they received help from the office staff to complete the budget process. He stated that the office staff was very particular on how bills were paid.
Rose King, 3427 N. Michigan, asked if the CDBG grant was for the entire township. Kozara explained that the township would be applying for a grant to replace water mains in six specific areas. First, the income survey had to be completed to see if the township qualifies.
Karri McCaslin, 2997 Jackson, asked if the township had renewed a contract with the City of Saginaw. Response: No, it was still being negotiated. Ms. McCaslin questioned whether the city would be raising the water rates. Response: Don't know. Ms. McCaslin questioned where the water from her sump pump goes. Riley explained the difference between sanitary and storm sewers. He stated that the township will be checking to make sure all residents are hooked up to the sewers properly. More information would be sent out in the near future. Ms. McCaslin questioned if the income information needed for the grant could be obtained from the census. Yeska explained the door-to-door surveying process and how the township could get more accurate information that way. Ms. McCaslin stated that she felt a more in-depth audit might be helpful in the future.
Public Comments:
John Bushroe, 3405 Bauer, questioned why all of the street signs are not red and white. Riley stated that, originally, only the street signs surrounding the schools were done. The funds were not available to replace signs for the entire township.
Rose King, 3427 N. Michigan, asked what the township policy was on trailers, cars and boats parked in yards. Oatten explained that residents need to call the police to report any illegally parked vehicles. He stated that each year the police department issues approximately 350 tickets for junk cars.
Jerry Fritz, 3363 Terry, thanked Ms. Renas for coming to the meeting and for her explanation of the audit procedures. He stated that when he was the township clerk, he found the budget process to be very meticulous and he felt good about the fact that the money coming in and out of the township balanced every month.
Kathy TenWolde, 1675 Hiawatha, stated that she was involved in the 1990 census and she found that people tend to lower their income amount when surveyed. She felt the township should use the census information for the grant. Yeska explained that the township did use census information for the last grant application, but did not meet the low-to-moderate income requirements.
Adjournment:
It was moved by Dalton and supported by Riley to adjourn. There being all ayes, the meeting adjourned at 9:15 p.m.
Respectfully submitted,
Joseph Finazzi, Clerk
Public in attendance:
Mary Clayton 3016 N Michigan
Raymond Jones 3675 Jackson
Jack Dalton 3634 N Michigan
Sue Dalton 3634 N Michigan
Robert Schliska 817 Oakview
Jerry Fritz 3363 Terry
Sharon Fritz 3363 Terry
Kathy TenWolde 1675 Hiawatha
Dennis Anklam 3630 Jefferson
Robert Gubody 3562 N Monroe
Ethel McTaggert 550 Evergreen
Rose King 3427 N Michigan
Dave Brushaber 3780 Bauer
Craig Douglas 1828 Kelly
Mark Kleinbriel 3484 Church
Gary Harvey 903 Evergreen
Linda Lou Lamb 915 Meadowlawn
Julia McMaster 903 Meadowlawn
Tammie Schmidt 902 Meadowlawn
Kathy Bushroe 3405 Bauer
John Bushroe 3405 Bauer
Mark Myczkowiak 3566 Church
Sue Baase 4635 Venoy
Jane Wolpert 3042 N Michigan
Dell McCaslin 2997 Jackson
Karri McCaslin 2997 Jackson
Vaughn Perkins 588 Nylon
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