Cloverdale council cuts $77,000 out of existing town budget

CLOVERDALE -- The Cloverdale Town Council held a special meeting on Tuesday evening to again discuss a plan for the town as well as the possibility of a financial adviser.

Clerk-Treasurer Cheryl Galloway came before the council one again in hopes of ironing out the budget as she recently met with the Department of Local Government Finance (DLGF).

"They found eight line items that were in the negative," said Galloway. "Out of those eight line items, I was in negative $57,479 and the DLGF said they'd like to have a resolution that says the town council will cut $77,000 out of the present budget."

Galloway then presented the board with a list of line items that would have a lot of money left over such as health insurance, building inspector, office maintenance and subscriptions and dues.

"Last year, when I was in the negative I put back $78,674 from this budget to protect myself from any negative," said Galloway. "I've got $136,885.98 that is protecting us from not going over and that's well within the $77,000 that the DLGF asked for."

The council later agreed to approve the resolution for the $77,000 to be taken out of the general fund as recommended by the DLGF. If the council had decided not to approve this resolution, it would be forced to deduct the $77,000 out of the 2014 budget.

Galloway then proceeded with the council to review the budget for the water and sewer fund, which Utility Manager Rich Saucerman had previously asked where all the money was going.

Galloway explained to the board that in 2012 Saucerman took the position of utility manager as well as maintained the water superintendent position. The council agreed to pay him $3,000 extra for taking on both positions.

The council also approved Brad Wheeler to distribution intake foreman with a pay raise of $4,000.

Also, utility worker Corey Copper was also promoted from part-time to full-time, which cost the town $10,186.80. He however, is no longer with the town.

Galloway also explained that due to the savings from Saucerman taking on two positions, four employees each received a $1,000 bonus, something they had not received in several years.

However, there was $30,000 in overtime during the year 2012.

In 2013, Clint Query received a $2,000 raise along with a new-hire raise to new-hire Mark Couch. In 2013 thus far, the utilities department has spent $15,000.

Galloway's purpose of explaining these numbers was to show the council how much was being spent by the utility department over the past year-and-a-half. It also allowed Saucerman know where his departments stand.

"The council is ultimately responsible for things of that nature," said Yackey. "Since I've been here, Cloverdale has not required its department heads to be aware of their budget, to understand their budget, to be responsible for their budget or to submit to you (Galloway) a budget for you to use to put together your budgets."

Yackey explained that under this system in Cloverdale, Saucerman is required to report to the council. However, he should be aware of his department's spending at all times.

Saucerman however stated to the Banner Graphic, that this was the first time he has seen any of the numbers.

"You have department heads that have no real grasp on their finances," explained Yackey. "The clerk-treasurer is forced, basically, to do your budget. This was the case with the predecessors going back to when I came here with Miss (Patti) Truax."

Yackey explained to the council that it is the practices that have been determined by the council, which have led to this point of the council looking toward a financial consultant.

"You've reached a point where prudence suggests you take control and issue the kinds of instructions to your department heads," Yackey said.

He went on to note that Saucerman has always followed the practice of coming before the council to get approval for purchases. The council however, did not make a decision on who would be in charge of the utility budget.

"The council thinks about the arguments for and against it," explained Yackey. "Without any real grasp of where the money is going to come from or if there is any money there at all. As a consequence of that, you on occasion have approved things and then later on you're scrambling in subsequent years to figure out how to pay for it."

The council then heard from Jeff Peters of Peters Municipal about the types of things he could offer the town as the financial consultant.

Peters stated that as the town's consultant that they will develop a three-year plan that looks at all operational budgets the town and put it into one primary document.

"You can determine as your revenues go down how is it you're going to fund these services going forward," explained Peters. "You have that ability to be proactive. It gives you a lot of comfort in these decisions you make as a fiscal body."

Peters Municipal can also provide such services as utility rate studies, revenue projection as well as developing and reviewing budgets. They also help determine ways that the town can save money.

The plan would be updated every year based on the data from the previous year and any legislation that may change.

The council did not make any hiring decisions during the special meeting. In the coming weeks it hopes to look into Patrick Callahan as an option, who could not make it to the meeting.