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YELLOW SHEET Office of the State Auditor of Missouri |
Report No. 2000-42
June 6, 2000
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 Clark, Missouri.
Former Mayor Clark was elected in April 1998 to serve a two year term, but she resigned in June 1998. At that time, Alderman Roberts was appointed mayor and Jason Baillargeon was appointed to fill the alderman position. These positions were not place on the April 1999 ballot.
According to state law, if a vacancy occurs in an elective office, the mayor and the board of aldermen are required to appoint a successor who serves until the next regular municipal election, which would have been April 1999. The winning candidate at that election then serves the remainder of the unexpired term, in this instance, until April 2000. The board of aldermen should ensure that any future vacant offices are filled in compliance with state law.
In addition, the Collector's official salary for the term beginning April 2000 was increased after the filing date. Voting the salary increase after the filing date to run for office has expired, gives the appearance of preferential treatment. The city should amend any elected officials salary and benefits prior to the last filing date for election to provide the most current information for those contemplating running for office; however, the salary and benefit increase should not take effect until the new term begins as required by state law.
The Board of Aldermen held several closed meetings during 1998 and 1999; however, minutes of these meetings were not prepared. Although minutes are not specifically required by law, minutes constitute the record of proceedings of the board. Failure to maintain minutes results in an inadequate record of city transactions, proceedings, and decisions. In addition, minutes help show that the closed discussions or business related to the specific reason announced for closing the meeting pursuant to Missouri's Sunshine Law.
A tentative agenda is prepared and posted for each board meeting; however, the agenda is usually in a standard form and does not disclose any specific information to be discussed for the upcoming meeting. To adequately inform the residents of the business to be discussed during the board meeting and to ensure compliance with the Sunshine Law, the tentative agenda should summarize the topics to be discussed during the meeting.
The city has a standard document request form regarding public access to city records, but the form does not provide citizens with a name and address where requests should be sent.
The city provides water, sewer and trash services to approximately 135 customers. Water meters are read around the twenty-fifth of the month and customers are billed on the first day of the next month. Payments are due by the fifteenth of the month.
In October 1998 the board approved an increase in water rates. According to city officials, the increase was to provide an increase in employees' salary and to maintain a surplus to repair the waterlines. However, the board did not prepare a statement of costs to maintain the water system as required when increasing the rates. Water and sewer fees are user charges which should cover the cost of providing the related services. The city should perform periodic detailed reviews of the costs of providing these services and set rates appropriately.
The City Clerk also serves as the City Treasurer contrary to an Attorney General Opinion. Money was deposited to and disbursed from the wrong funds. Deposits are not made on a timely basis and a detailed record of monies received is not maintained. The city does not have a formal bidding policy, and does not adequately document its review and approval of expenditures.
Budgets did not include some information required by state law and budgets were not periodically compared to actual revenues and expenditures. As a result, actual expenditures exceeded budgeted amounts. In addition, the city did not publish financial statements or submit annual financial reports to the State Auditor's office on a timely basis.
