PRESORTED STANDARD
U.S. Postage Paid
Vernonia, OR 97064
Permit No. 37
Vol. 22, No. 4
“Voice of the Upper Nehalem River Valley”
February 15, 2007
Helping hands
Vernonia Girl Scouts, Neighborhood 4-2, happily display the fleece blankets they made to donate to Emanuel Children's Hospital, Vernonia Ambulance Associa-
tion and Vernonia Police department.
Overall audit is ok, but shortages found in City’s reserve funds
The results of the city’s
budget audit and the supple-
mental budget, presented by
city administrator Dick Kline,
occupied most of the evening
at the February 5 Vernonia City
Council meeting.
As Kline had reported at an
earlier meeting, the city budget
had a negative balance
($384,174) in the Community
Development Fund. The audit
also found that reserve funds
required to service bonds and
loans were not present in two
instances.
A Water Fund bond from
2000 with a payment schedule
through 2041, does not have a
required $83,965 reserve. A
How are local
budgets put together?
See Budgets 101
Page 4
Sewer Fund loan received in
June 2005, does not have a re-
quired reserve of $51,698.
Three other reserve accounts,
totaling $355,306, were in
place as required.
The audit also noted that the
city does not maintain ade-
quate historical cost records for
capital assets and that a Man-
agement’s Discussion and
Analysis, required by generally
accepted accounting standards
as supplemental information,
was not provided to the audi-
tors.
Overall, the audit report
found “no matters involving the
internal control over financial
reporting and its operating that
we consider to be material
weaknesses.”
On the issue of the lacking
reserve funds and the negative
fund balance in Community De-
velopment, Kline said he is
“Confident and optimistic about
the future of this community.
We are not broke, but we are
wounded.” He then explained
to council a supplemental
budget that brings the reserves
up to where they need to be,
and begins to offset the nega-
tive balance fund.
Kline also discussed pro-
posed changes to budget line
items that he hopes will help
make the budget process more
transparent regarding where
funds come from and where
they are spent. At the end of
Kline’s presentation, the coun-
cil by consensus, told Kline to
continue in the direction he’s
headed on the supplemental
and regular budgets.
Kline discussed an Observa-
tion Report of Vernonia Lake
provided by Clifton E. Deal En-
gineering that cost the city
$400. This is the first step for
any future projects to fix seep-
age problems at the Lake. The
report provided cost estimates
and potential solutions. No ac-
tion was taken; Council and
committees will review the re-
port before deciding on any fu-
ture actions.
In other business, council:
• heard Mayor Sally Harrison
appoint Casey Mitchell and
Noni Andersen to fill open posi-
tions on the Parks Committee
and reappoint Nancy Dailey
and Dan Murphy to four more
years on the Planning Commis-
sion.
• approved city water service
to 60265 Stoney Pt. Rd. Hous-
es on both sides of this address
are already hooked up to city
water.
• heard that 75 guests at-
tended the Mayor’s Ball. The
Ball paid for expenses with
$2,700 left over. $2,000 was
donated to local charities, with
$1,000 going to the Learning
Center, $500 to Hands on Art
and $500 to the skateboard
park project. The remaining
$700 will be kept in reserve.
• came out of an executive
session and unanimously ap-
proved a salary schedule for
the police department’s new
sergeant position.
The next regularly sched-
uled council meeting will be on
Tuesday, February 20 (not the
19th due to President’s Day), at
7:00 p.m. at Vernonia City Hall.
Blood drive slated for
Vernonia High School
There will be a blood drive
at Vernonia High School on
Tuesday, February 27, from
11:00 a.m. to 5:00 p.m.
Drop in donors are wel-
come. If you need to schedule
a specific time, contact VHS
Activities Director James
Brookins at 429-3521, Tuesday
or Thursday afternoon.