Nevada County Picayune and Gurdon Times Newspaper Archive

Bookkeeping System Causes Problems For City Of Rosston

Business as usual for the Rosston City Council is anything but normal.

Thursday, Dec. 4, the council had a lengthy debate concerning the city's bookkeeping system and how it could be improved.

Rosston Mayor Lewis Jackson had called Chuck Matthews about handling the city's accounting, but was turned down. In fact, Jackson was unable to find a certified public accountant in the area who would look at the city's books.

Former councilman Rick Butler reminded Jackson there were two issues for whoever takes over the books, one being the audit of the Rosston Water Department and the other getting the city's bookkeeping system in order.

Prescott accountant Carl Dalrymple did an audit for Rosston in 1996, but, Butler said, what was done was not a true audit.

Jackson said Dalrymple has the city's financial records, but they can be gotten back when the council finds an accountant to perform an audit. He said the Arkansas Legislature passed a law requiring cities to be audited annually.

The city, he said, received a letter from an accountant from Fort Smith who specializes in small water systems and is interested in handling the audit for Rosston's water department.

According to the letter, the CPA would do the audit for between $1,400 and $1,600.

Jackson said when he contacts the CPA, he will also ask if he can help get the city's books straightened out.

However, at this time, Rosston doesn't have a recorder/treasurer to handle the books. Cindy Taylor resigned the position at the October meeting of the council.

Jackson said one resume was received for the open position from Brenda Tate. She will be interviewed for the job at the January council meeting.

Jim Cross pointed out the council was discussing two different types of audits being done. The water department audit is a utility audit, he said, while the city audit would be entirely different.

The water records, he said, must have all records balanced on the computer. The data is available every month as the bills are mailed out and paid.

The problem, Cross continued, is the bills are not being matched with the payments being made and isn't being placed in the computer. Computer records, he said, are showing bills to be outstanding that have been paid.

Jackson said he would contact the Arkansas Municipal League to get help in having an accounting system set up.

Rob Robison moved the audits be done by outside sources and not local accountants. He said Jackson needs to find someone to do them and get on with it.

The motion was seconded by Edna Kelly, who then moved the city hire the accountant from Fort Smith.

Robison pointed out a motion was on the floor and hadn't been voted on. His motion was approved by the council and Kelly's wasn't made again.

In other business, Jackson told the council the deeds to the community center couldn't be found, which caused a delay in the bidding process. However, the deeds were located and the property bid for sale.

Bids on the community center as well as a parcel of land the city owns will be opened on Saturday, Dec. 27, at 10 a.m. at the Rosston City Hall.

Raising the water rates was also discussed, with the general consensus being no one wants higher water bills.

Butler suggested the council contact the Farmer's Home Administration and get information on its debt service to rate ratio along with a recommendation from the FHA as to what it thinks the rates should be in Rosston.

Once this information is obtained, the council, he said, should go to the people telling them how much is owed so a rate hike could be justified.

Cross said if the rates are raised, there will be fewer people on the system because several will terminate their services. "People can't afford higher bills," he said.

Jackson said the city is gaining some now, and should be able to have its water tank repaired, but can't.

Water superintendent J.D. Luck suggested instead of one big water rate increase the city institute several annual percentage increases to people can adjust to them easier.

However, though a motion was made for Jackson to contact the FHA for help, it died for lack of a second.

Rosston will soon be without the services of Cross as the chief of its volunteer fire department. He tendered his resignation, effective Dec. 31, at the meeting.

Cross said he would remain as an assistant fire chief and recommended Johnny Jensen to replace him as the chief. Jensen, he said, has already agreed to take the job.

Cross also said the council needs to spend the Act 833 money, about $1,000, it has or the VFD will be in jeopardy of losing it. He suggested using the money to purchase turn out gear and hand held radios for the department.

The final order of business dealt with the city's proposed 1998 budget.

According to the budget approved by the council, there will be $26,490 in the city's general fund, with $9,520 in the special review street fund.

The city's anticipated expenses include $2,300 for general street work and $3,490 in excesses over disbursements.

The proposed budget for the water department was $51,037.