Audit shows city went over budget in 2012

But officials say it was simply a money transfer matter

By Jennifer Eisenbart

Staff Writer

The City of Burlington Common Council may have been on a bit of a learning curve with its audit this year.

After listening to Patrick Romenesko explain the city’s finances at the July 2 meeting, the City Council approved the audit – and paying the final $25,000 to Romenesko – at Tuesday’s meeting.

But after numerous questions about the audit two weeks ago, more remained at Tuesday night’s meeting.

Chief among them were the costs involved with the audit. Alderman Tom Preusker specifically asked if the cost of the audit was normally as much as it was during the approval of bills.

The basic answer is yes, though Alderman Tom Vos explained that costs seem to have risen about 1-1.5 percent a year, based on the economy.

Preusker indicated that the limited-scope audits he has seen have fallen in the $10,000-$15,000 range, and Mayor Bob Miller said that the city audit definitely didn’t fall under a limited scope.

But the audit was unanimously approved at the meeting. Among the highlights of the audit as presented on July 2:

• The city went over budget in 2012, and Romenesko said most communities adjust their budget mid-year to show where the increased costs are.

City Administrator Kevin Lahner said officials knew the city knew it would be over, and elected not to adjust the numbers mid-run.

• The city did delve into the general fund because of the added costs, which were attributable to the added costs of garbage pickup (fuel surcharges) and the purchase of the property next to the City of Burlington Fire Department that is going toward an expanded parking lot for the department.

• There is a negative balance in the Environmental Tax Incremental Finance District fund – the TIF where the city’s parking structure, the new Hampton Inn and a planned retail space are located.

Lahner did point out that the city has known that would have a negative balance, and Miller agreed. It is funded in part by TIF 3 and that TIF will eventually be paid back by the value created in the environmental TIF.

On Tuesday night, Miller said the city is fully aware of the negative balance, and that there is more than enough money in TIF 3 to cover the situation.

“We just didn’t transfer over the money,” Miller said. “It’s paperwork.”