Members of the Houston City Council on Monday received a copy of its annual audit covering last year and heard an update from its parks and recreation department.
The audit presentation came from Jon Cummings of KPM CPAs and Advisors in Springfield. Cummings provides audit services to clients primarily in the non-profit, education and government areas.
Cummings, conducting the annual routine audit for the year ending Dec. 31, gave a clear opinion of the city’s finances.
“Overall, it was pretty good financially for the city,” Cummings told the council. Like past years, the city’s chief source of revenue is profits from the its municipally owned electrical system. Other contributors are four sales taxes, property taxes, water-sewer revenue and grants. Following passage of a one-cent sales tax in April, another income stream will be available later this year. It will be used for fire, police and parks and recreation functions.
The lion’s share comes from the income generated from the electrical department.
Cummings walked the six-member council and mayor through the numbers in the budget. Highlights included:
•A previously segregated Urban Development Action Grant (UDAG) fund totaling $167,440 and used for industry projects was closed out at the end of the year and moved to the general revenue fund.
•Grant revenue —which floats up or down depending on the projects underway — was down for the year.
•Cash generated from retail sales of electricity was strong.
•Like most small towns, Houston doesn’t have enough staffing to adequately separate duties for various office staff to strengthen controls against wrong-doing.
•Cummings highlighted some year-end actions to comply with Generally Accepted Accounting Principles (GAAP) and some changes planned for this year and 2020, including how leases — whether capital expenditures or rentals —are accounted for on the books.
Cummings urged the council to keep close tabs on the operation of the city in light of several personnel changes over the years. He also urged it to perform cross-training of employees, when possible.
PARKS AND RECREATION DEPARTMENT REPORT
Kayla Sloan, parks and recreation department director, gave an update on the operation of the swimming pool, a recently opened splash pad and a swim meet at the Houston Municipal Swimming Pool.
Sloan said Houston’s Little League program will participate in a special night for them at an Aug. 8 Springfield Cardinals baseball game. Tickets, which cost $12, also will act as a fundraiser. The top seller gets to throw the first pitch. It is also “Route 66 Super-Soft T-shirt Giveaway Night.” On June 29, a “Freedom Run” —with several planned activities before an evening fireworks show —is planned in Houston.
VISION FOR DEPARTMENT
Sloan described several West Side Park projects under discussion in her department. They include completion of a splash pad project by the end of summer that would include a rubberized mat, T-swing designed for ages 5 and under, park benches and a structure for shade.
Sloan said thanks to the generosity of a local manufacturer, Durham Co., a metal box would be constructed to house controls for the splash pad.
A recirculation water system for the new splash pad project was also discussed. The cost is estimated at $80,000 – $100,000. Water isn’t recycled in the current setup.
Sloan also discussed the possibility of adding coin-operated batting cages that would have four stalls. The cost is $148,000-$172,000. They might be included at a quadplex or recreation center that was discussed during a successful campaign for a sales tax with a portion of the revenue used for recreation purposes. There is no location yet. A need for full-size basketball courts at Emmett Kelly Park also were highlighted.
In other matters, members:
•Approved Mayor Willy Walker’s appointments for the Houston Park Board: Jerry Spencer, chairman; Jeff Richardson, Missy Gayer, Rachel Kelly, Justin Brown, Bennie Cook, Brad Evans, Larry Benoist, Jennifer Shelton; and Heather Sponsler, secretary.
•Adjourned into a closed session. No votes were taken.