New council questions budget overspending in city’s 2015-16 audit

By JIM BROOKS
Nelson County Gazette / WBRT Radio

Tuesday, Jan. 3, 2017 — The new Bardstown City Council spent time at its first meeting going over the city’s recent audit and asking questions about the findings that included overspending in the city general fund.

Councilman Bill Sheckles makes a point during a discussion about the city audit at Tuesday night’s meeting.

The questions were directed to Tracey Hudson, the city’s chief financial officer about the city’s audit which was presented last Tuesday to the outgoing council.

During her discussion of the audit, Linda Gray, of Louisville-based Peercy & Gray, voiced some concerns about portions of the audit. Among those concerns were the general fund’s net loss, and several of the city’s utilities ending the year with a loss.

Heaton explained his concerns with the audit are based on the fact that helping draft and then approving the city’s budget — and monitoring the city’s spending — are some of the city council’s most important tasks.

“The four of us being new, I thought it important for us to try to get our hands around what happened last year,” he said. “I wanted to see if we could get some explanation on some of the entries (by the auditor).”

Councilman John Kelley Jr. also asked for an explanation of the audit’s finding that the city general fund’s expenditures exceeded their budget by $233,805.

• Click here to download the City of Bardstown’s 2015-16 audit (new window will open).

The audit notes that the overspending was covered partly by the balance in the general fund; the rest was covered by utility transfers.

The overspending was due to a variety of causes, including overtime and health insurance expenditures that went over budget.

Councilwoman Kecia Copeland listens during a discussion at Tuesday’s city council meeting.

Kelley asked why the spending didn’t stop when a department’s budget was exhausted. Hudson said the department heads were responsible for watching their budget expenditures. “It’s hard to not pay the bills when they come in and people want their money,” she said.

Kelley said that as a councilman, he felt the council should review the budget as it is being spent throughout the year.

Hudson said the city will amend its budget as necessary this year to prevent a repeat of the end-of-year budget shortfalls.

WORK SESSION NOW A MEETING. For years the city council has had two regular meetings each month, and an informal work session on the first Tuesday of the month on an as-needed basis.

Councilman Kelley raised questions regarding the council meetings and the legality of the work session in particular.

Work sessions have typically been informal meetings where the council can discuss various topics outside a formal council meeting. No final action was usually taken at a work session.

City Attorney Butler said after Kelley raised a question about working sessions, it was determined there was no record that established the time, date and place of working sessions — requirements that exist for regular city council meetings.

The work sessions are still considered council meetings, Kelley said, and he suggested the city specifying the work session as a third formal meeting — one which could be canceled if there was no reason to meet. After discussing the matter, the council informally agreed to take the matter in the form of an ordinance that will create a third monthly meeting for the first Tuesday to replace the working session. The new meetings can be canceled if there’s no council business to discuss. The council will have the option to take action on an issue at the meetings if it wishes.

NEXT UP. An ordinance establishing the working session as a formal meeting will be considered by the council as early as its meeting on Tuesday, Jan. 10, 2017.

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