YELLOW SHEET
Office of the State Auditor of Missouri
Claire McCaskill
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YELLOW SHEET Office of the State Auditor of Missouri |
Report No. 1999-117
December 20, 1999
Some problems were discovered as a result of an audit conducted by our office in response to the request of petitioners from the City of Browning, Missouri.
The City of Browning provides water and sewer services to approximately 160 customers and trash services to approximately 136 customers. Our review of the city's billing and collection records and procedures disclosed the following concerns:
The city contracts with a trash hauler to collect trash from the homes in the city. For a number of years, the trash hauler billed city residents directly for trash service. In October 1997, the city began billing each resident seven dollars per month for the cost of the service. The fees charged to residents were established without a public vote, and some residents who apparently do not use the service have been billed for trash fees.
Article X, Section 22(a) of the Missouri Constitution, commonly known as the Hancock Amendment, prohibits political subdivisions from increasing existing taxes, licenses, or fees above levels authorized at the time of passage of the Hancock Amendment without voter approval. However, Section 67.042, RSMo 1994, allows political subdivisions to adjust existing fees and licenses to maintain funding of services provided at the time of passage of the Hancock Amendment.
Because this matter has been a concern of some citizens, the city should request that its attorney review this fee to determine whether it is or can be structured as a user fee or whether the fee and any fee increases should be put to a public vote.
During the year ended December 31, 1998, the city collected $10,694 in trash fees and paid $3,084 for trash hauling services. The city has not been billed by its former trash hauler for trash services provided from September 1997 through June 1998, but the city expects to be billed for these services in the future. It appears the 1998 share of these costs is approximately $5,400. The city has not identified any other costs, such as administrative costs, related to trash service. Ordinance 252 indicates all trash fee payments received by the city shall be used to defray the expenses of collection of solid waste. The administrative costs of providing trash collection services should be calculated and documented. If the current revenues generated exceed the estimated costs incurred in providing trash collection services, consideration should be given to reducing the fee accordingly.
The city waived trash fees for some residents and commercial establishments without adopting ordinances or rules to authorize the waivers and the City Clerk's billing records do not always indicate which water, sewer, and trash bills have been collected.
In 1996, the city was awarded a $64,252 COPS Grant to pay salaries and fringe benefits for two part-time police officers over a three-year period. Grant disbursements are not approved by the Board of Aldermen. Time records for all police officers are prepared by the Police Chief and do not clearly identify all officers and the number of hours worked by each officer. The Police Chief was paid for hours worked by other officers.
Improvements are needed in the city's budgeting documents and procedures. The city's published financial statements are not sufficiently detailed and do not reflect some financial activity and indebtedness of the city. The 1998 annual financial report submitted to the State Auditor's office is inaccurate and incomplete. The city has not obtained annual audits of its water and sewer system as required by state law and the city's bond covenant.
During the year ended December 31, 1998 the city deposited $13,164 of state motor vehicle-related receipts and $3,813 of county road sales tax receipts into the General Fund. During 1998, the city spent $2,035 on street repairs and $13,452 for police department expenses. The city has not established a separate accounting for these receipts and related disbursements. Article IV, Section 30, of the Missouri Constitution, requires that motor vehicle-related receipts apportioned by the state of Missouri be used for street-related purposes, including policing, signing, lighting, and cleaning of roads and streets. The county sales tax monies were approved by county voters for road and bridge capital improvements.
A separate individual has not been appointed to serve as City Treasurer and there is no independent review or supervision of the work performed by the City Clerk. Deposits are not made on a timely basis and board minutes do not identify the disbursements approved by the board.
The city has not adopted formal plans to address citizens' concerns regarding building conditions. The city purchased two properties containing dangerous and unsafe buildings and paid to have the buildings demolished and removed. However, the city has not formally identified all remaining dangerous and unsafe buildings or developed formal plans to ensure the buildings are repaired or demolished. The city unsuccessfully attempted to negotiate the purchase of two other properties that contained dangerous and unsafe buildings.