KEYSER, W.Va. — The city of Keyser is continuing to work on getting its finances in order.
During, Wednesday’s meeting the council gave approval to Kathy O’Brien, president of NPO Resources, to perform an in office account reconciliation the next day. The council also directed O’Brien to communicate the necessary documents via email to Griffiths & Associates, Certified Public Accountants located in Alum Creek.
The 2010 audit can be viewed at the city’s website at www.cityofkeyser.com and by clicking on the budget listed under the Government tab.
“We have got the July reconciliation of the general (budget) done,” said Mayor Randy Amtower.
At the last council meeting in January, the council agreed to go ahead with an ordinance to refinance the 2001 series B bonds. The second reading of the ordinance to refinance the bond, was done during Wednesday’s meeting. Before the ordinance is fully adopted, a public meeting will be held and then a third reading will be held at the March council meeting.
In order to refinance the bond, the sewer account, which is part of the general account, has to be balanced, according to Amtower.
“Because our accounting system uses one checking account and uses do to’s and do from’s for multiple funds within one account you have to have the entire general (account) reconciled to be able to have your water and sewer (accounts) reconciled,” said Amtower. “There were some issues on bond reserves. I think I have most of those worked out.’’
The refinancing of the bonds would save the city $155,665 over the next 13 years, according to a refunding update provided by Crews & Associates, Member First Security Bancorp, at the January council meeting.
The city has been working to rectify an error that occurred with the sewer and water accounts. Upon meeting with bond counsel, Amtower discovered an excess of $47,000 in a sewer reserve. Amtower drafted a letter to the bond counsel and received the money three days later.
“That money was placed into the sewer account,” said Amtower noting that he checked the restrictions on that money. “Being as it was an excess in that reserve it was allowed to go right back into the sewer account, which helped a lot with the deficiency in the sewer account.”
The city is still working on rectifying the water account, according to Amtower.
“We are working on the water first because it is in the worst shape,” said Amtower. ”We have an overage on sewer and a shortage on water. We feel that it was placed there in an error.”
Amtower is waiting on a final ruling to accept the shortage on water. The auditor has approved the ruling, with the stipulation that John Stump from Steptoe and Johnson, the city’s bond counsel reviews the documents and makes certain there is nothing missing, explained Amtower.
“Once we get that it will be brought to the water and sanitary board, then it will brought to the general meeting for an approval to move those funds at which time all of our bond reserves will be 100 percent current,” said Amtower.
Once all the accounts are balanced, the next step would be a proposal to have independent checking accounts for the water and sewer accounts, so it is known how much money is in each account, explained Amtower.
“What it amounts to is, if I have a checking account and I pay your bill then you have a ‘do’ to from you to me, to put it back into my account,” said Amtower.
Contact Elaine Blaisdell at eblaisdell@times-news.com.
