Report No. 2008-05
January 2008
Complete Audit Report
The following findings were included in our audit report on the City of St. Peters, Missouri.
The city of St. Peters is involved in a redevelopment project located in the Highway 370 corridor, called the Lakeside 370 project. The city estimates that the revenues from the sale of this land will exceed costs of obtaining and improving the land by $9.8 million. Our review of this project noted some concerns including: appraisals were not obtained for some land purchases, one bond series was not issued on a competitive basis, and the city did not formally request proposals for the redevelopment project. This project is ongoing and the city should continue to monitor its progress to ensure its successful completion.
The severance pay clauses in the city administrator and chief of police employment contracts are large. As of the end of October 2007, the city had a possible liability if the city administrator was terminated of approximately $801,000, and a possible liability if the chief of police was terminated of approximately $107,000.
The $900 monthly car allowance paid to the city administrator does not appear to be reasonable. Our analysis of the cost to the city of providing a city car indicated the monthly cost would be only $640. If the city elected to reimburse the city administrator at the city's current mileage reimbursement rate of 48.5 cents per mile, the monthly cost for 1,000 miles would be only $485.
The current city policy allows the city to solicit bids and enter into agreements that provide for the option to renew for various terms ranging from one to four years. However, the bids do not detail the specific prices or a maximum percent increase in the price for the option years. By not requiring bids with specific prices or percent increases in the option years, the city is unable to ensure they are receiving the lowest total bid price over the course of the entire contract period.
The city has not obtained proposals for general counsel legal services. The city paid an outside law firm approximately $278,000 during the year ending September 30, 2006, of which approximately $165,000 was for general counsel legal services.
Some receipts for local meals purchased by the current and former Mayor were not detailed enough for an adequate review. Receipts did not include any supporting documentation detailing the meeting and why it was necessary to provide a meal.
The city has not recently conducted a physical inventory of its capital assets and usage logs are not maintained for city vehicles. The Police Department is not making transmittals on a timely basis and the city is not formally documenting a review comparing water bills to the amount of water pumped and purchased.
Complete Audit Report
Missouri State Auditor's Office
moaudit@auditor.mo.gov
