SPRINGFIELD — An audit of Springfield’s finances shows that on the heels of a $457,000 shortfall, the city’s deficit soared to about $1.9 million at the end of fiscal year 2011-2012.
The City Commission received a presentation about the 2011-12 audit during a meeting Monday.
Major problems areas that year were a $432,000 loss in the water fund and a $110,000 with the now defunct cable department.
Katherine Lynn of Carr, Riggs and Ingram conducted the audit, starting it last August. Mayor Ralph Hammond said the audit is two years late, saying the process took longer than usual because the auditor did not have many receipts and invoices to work from.
“It was past due before she even started on it,” Hammond said.
Hammond expects the audit for 2012-13 to be completed in November. He said that audit suffers from the same lack of records as the 2011-12 audit. The audit for 2013-14, when Hammond and finance director Lauren Laramore took over, should be much easier, he said.
Since suffering a shortfall in 2011-12, the city has dissolved the cable department, sold real estate and surplus assets and raised water rates.
However, the continuing precarious position of the city has prompted officials to move toward approving the city’s first-ever property tax for the upcoming fiscal year.
Also Monday, the commission heard a presentation from attorney Doug Sale about the ongoing controversy concerning the Advanced Waste Water Treatment group’s Cherry Street lift station.
Sale said Springfield has three options: stay neutral, support the county’s legal position or support Callaway’s position. The county’s position is financially beneficial to Springfield because it would force Callaway to pay for all the repairs to the station and to solely pay to treat its sewage. Callaway’s position would require Springfield to pay some of the repairs for the station with the other members of the AWT and potentially pay part of the capital improvement of a new air treatment system.
Springfield City Attorney Kevin Obos also is the city attorney for Callaway. The commission informally agreed to allow him to represent Springfield at the upcoming meeting on July 29 between the staffs of the county and Callaway as a part of the conflict resolution process.
“At some point we might have to drop you, but you’ve represented the city so far,” Hammond said to Obos.