Auditor tells Marksville to keep up good work

Marksville’s finances are a lot better than they were this time last year, but city officials were warned not to ease up on watching their spending.

City auditor Aloysia Ducote, of Ducote & Co., said measures adopted last year resulted in a decrease of about $500,000 in expenses. Most of that was in personnel-related costs, she said.

“I encourage you, stay as attentive as you were last year,” Ducote said, adding that the budget could get out of kilter again if the City Council reverts to past spending practices.

Overall, the city ended the budget year with a surplus of $149,000. That compares to a $560,000 deficit the previous year.

In her audit report of the past budget year, Ducote noted that the city’s water and sewer departments are still a drain on the overall budget. “In most municipalities, the enterprise (utility) funds help out the other funds,” she said. “Here, the General Fund and Sales Tax Funds have to help out the enterprise funds.”

Although a rate study concluded the water and sewer rates were appropriate, she said the city needs to determine why the departments cannot pay their own way.

On a positive note, sales tax receipts were up by about 3 percent last budget year.

BOND REFINANCING

In another matter, the council authorized refinancing $713,000 of sewer revenue bonds. The 1995 bond issue was originally financed at 4.5 percent. By refinancing at 3.25 percent, the city will save $96,000 over the remaining 17 years of the bond issue.

In other business, the council awarded the contract for Phase II of the grant-funded Water System Improvement Project to NCMC of Baton Rouge.

NCMC was the low bidder at $391,366. The highest responsive bid of the seven received was for $592,820.

City Engineer Rene Borrel said Marksville received a $634,530 Community Development Block Grant for the project. He told council members the city will be able to add more water system improvements along Preston Street with the remaining $243,164 of that grant.