City agrees to transfer $92,000 into general fund

Melodie Phelps, News Editor

Monticello — To help alleviate possible cash flow issues, the Monticello City Council

agreed to transfer a $92,000 certificate of deposit into the general fund

until November when property taxes are collected.

During a meeting held on Monday, City Clerk-Treasurer Greg Latham

explained to the council that in the past the city has enjoyed a significant

fund balance that helped them through months when revenues were down. But

with the tough economic times, that fund balance has dwindled and it has

left the city facing a potential cash flow problem until property taxes are

collected this fall.

Councilmen Phillip Duncan and Alvin Sexton both had questions regarding

the city's financial picture. Duncan asked about the city's spending, if it

has been cut back to reflect the economic situation. Mayor Kenneth Catron

said he had met with department heads and at this point unless there is an

emergency, spending has been cut.

Sexton questioned that after November, when the $92,000 is replaced,

would the city be back in the same situation.

"Our cash does not come in equally over a 12-month period," said Latham.

"This money will be put back in November when property taxes are

collected....This is not a major financial problem. At the end of the year,

we'll be right where we are supposed to be."

The transfer was approved by a 5-1 vote, with Sexton voting against it.

Also during Monday's meeting, the council heard the first reading of the

ordinance setting tax rates for 2009-2010. The proposed property tax rate is

down slightly this year, from 12.3 cents per hundred dollars assessed value

to 12.1 cents.

The tax rate for taxable personal and tangible property will remain the

same at 14.1 cents per hundred dollars assessed value. The vehicle and

watercraft rate will remain the same at 22.5 cents per hundred dollars

assessed value.

The ordinance requires a second reading and council approval to take

effect.

Local businessman Jimmy Ballou addressed a list of questions to council

members regarding the streetscaping project in the downtown area. Ballou

said that his business took a loss last year, when the first phase of the

downtown water and sewer project caused street closures throughout the area.

He asked about the number of days businesses in the downtown area would

be affected by this project. Catron noted that the project is slated to

begin at the end of this month and should be completed in early December.

Ballou asked about how it would affect parking, and Catron said that no

parking spaces will be eliminated by the project, which is designed to

relocate all utilities underground in the downtown area.

Ballou also voiced concern about liability, if anyone is hurt while

sidewalk construction is going on. He asked about plans regarding some of

the historical buildings in downtown Monticello that are in disrepair.

Catron said that there are efforts underway to secure grant money for fixing

some of the historical buildings.

Catron assured Ballou that the Mayor's office and the council will be

available to help with any problems that may occur for businesses that are

affected during this project.

In other action, the council:

€ Accepted the resignation of Jane Dalton from the Park Board and

appointed Randy Gregory to replace her.

€ Approved a resolution authorizing a grant application to seek funding

for improvements to the city's water plant.

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