Seckman: Lovell town finances in good shape

The Town of Lovell received a financial clean bill of health last week at the regular November 14 town council meeting in the form of an audit report by CPA James Seckman of Powell.
Seckman, in a summary presented to the council, said the only minor issue with the town finances is the segregation of duties, which happens in most small towns.
“There is a way to get around it,” Seckman said, noting that the town could have “compensating controls” like having a member of the town council sign checks.
As for the finances themselves, Seckman said the general fund has $3,932,759 in cash, with $1,968,766 in operating expenses, which means the town has 24 months of reserves on hand.
“I like to see six to 12 months on hand. You have double that, so you’re in really good shape with a very healthy general fund,” he said.
The water fund is a different story, Seckman said, with cash in the amount of $1,080,880 and operating expenses of $941,883 – about 13 months in reserves.
“Twelve months in the bare minimum, up to 36 months,” he said. “So 13 months is on the low end of that. I’d like the town to consider raising water rates by as much as $4 (per month). The fund
is growing, but not at the rate I prefer. It would take about three years to get to where we should be.”
The sewer fund is in good shape, “right where we want it to be,” Seckman said, with $1,003,689 in cash and annual operating expenses of $484,558 – roughly 24 months in reserves, with 12 to
36 months recommended.
As for the sanitation fund, the town has 17 months of reserves with cash in the amount of $640,904, which Seckman said is enough to cover the cost of replacing a garbage truck and receptacles. He said the town may need to look at sanitation rates next year after purchasing a new garbage truck.
Looking at the town’s long- term debt, Seckman said the town still has $3.6 million left to pay on the loan for the water and sewer infrastructure project, making annual payments of $450,000, but he said the loan has an interest rate of 3.05 percent, whereas the State Loan and Investment Board has a new loan rate of 1.5 percent, meaning the town could cut the interest rate in half and pay off
the loan substantially sooner.
In answer to a question from councilwoman Carol Miller, Seckman said the water and sewer loan has nine years left at the current interest rate.
“Your books and records are in good shape,” Seckman summed up. “It’s a pleasure working with your staff.”
 

PARK PROJECT MOVING FORWARD
The council reviewed the consulting agreement with Pryor Mountain Engineering for Phase II of the Constitution Park Project. The agreement has been reviewed by the town attorney and signed by Pryor Mountain,
Nebel said. The council voted to approve and have Mayor Tom Newman sign the consulting agreement. Nebel reported that, if employees elect to take their work vehicle home, a fringe benefit item will need to be listed on their W-2 form, a process he hopes to get in place by January 1.
“This will keep us legal and complying with the law,” Newman said.
Added public works director Adrin Mayes, “All of the employees are in favor of doing the correct thing.”
Nebel said he was approached about allowing hunting on town property for land the town owns like the vegetative waste site. The
council decided to maintain the “no hunting” policy.
“Personally, I don’t think we have any land that is great for hunting,” Newman noted.
In other action November 14:
• The council voted to approve a quarter page employee recognition ad for the Lovell Chronicle Thanksgiving special edition.
• The council scheduled a work meeting for November 28 at noon to discuss new employee job descriptions and personnel policy changes.
“Jed has spent a lot of time clearing up questions from our employees,” Mayor Newman said. “It’s a fluid document, but this gives us a place to start.”
• The council voted to approve a software and services proposal from the Caselle accounting software to meet the requirement that W-2 forms will soon need to be filed electronically.
• After a presentation by Nebel, the council voted to approve an agreement with Rocky Mountain Power for a new streetlight at Railroad and Big Horn Avenue.
• The council voted to approve a request from Big Horn County to send payments to the town electronically rather than through the mail.
• The council elected to not renew the current preventative maintenance agreement for the heating and cooling system at the community center. The council also approved having Trautman Cleaning Service
clean the carpets at the community center.
• Presented with an election form for the Local Government Liability Pool board, the council asked the office staff to vote as they see fit.
• Nebel informed the council that TCT is willing to donate some services to install internet at the town parks so cameras can be installed.