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| Magnolia cites drop in property tax revenue for negative fund balance |
The City of Magnolia has a negative balance in its general fund of $126,899, according to a recent financial audit.
According to the report, for the fiscal year ending September 30, 2008, the negative budget is attributed to “property taxes and fines and forfeitures reporting less than expected revenues during the year.” The audit was performed by Belt Harris and Associates, LLP and was presented to the council at a July 7 meeting. Fifty percent of the city’s revenue comes from sales taxes while the rest comes from property taxes, charges for services and other revenue, the audit reported. Last year, the city budgeted $401,800 for property tax revenues but only accrued $178,547. As far as expenses, 58 percent goes to public safety, while the rest goes to general government, public works and interest and fiscal agent fees. The city spent $1,202,489 in total public safety fees last year, which includes the police department, the city marshal and the municipal court. At a July 14 city council meeting, Municipal Judge John Purvis told the council there was more than $1 million in uncollected warrants for the city. According to the audit, the general fund is “used to account for all financial transactions not properly includable in other funds. The principal sources of revenues include local property taxes, sales and franchise taxes, licenses and permits, and fines and forfeitures. Expenditures include general government, public safety, and public works.” The audit listed municipal court procedures as a “significant deficiency,” finding that “the City did not maintain adequate detail related to the municipal court deposits that are made daily into the City’s cash.” The auditors recommended the City “print a detail of all money received that is used to reconcile that day’s activities in preparation of the daily deposit.” According to the audit, the city reported an increase in sales tax during the year due to the increased development within the City, but a decrease in the general fund balance due to the addition of personnel to city services. From an operational standpoint, the city is functioning fine, the report stated. During the July 7 meeting, City Administrator Ryan Kelley said the Council was “way over budget” last year. Last year the city budgeted $2,197,180 in total revenue and collected only $2,031,974 in revenue. The Council discussed over-projecting revenues and making less than expected in property tax revenues, as well as changing the water and sewer policy, which Kelley called an “unfortunate reality.” “Our water and sewer funds are not making ends meet,” Kelley said. Council members cited the recession and the slow development of the Magnolia Ridge housing development as partly to blame. However, Mayor Jimmy Thornton told the council that investors “dumped $3 million” into the Magnolia Ridge housing development “to continue” the project. So far, nearly 20 lots have been sold. Kelley suggested conducting “monthly closeouts” to keep tabs on the city’s finances. He said he and finance clerk Beverly Standley will get together and make cost-cutting measures for the city. “We’re tightening our belts,” Kelley said.
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written by LittleMissMuf45, July 20, 2009
Missing funds ??? NOT Magnolia ... What happened to all of the money from the Music Festival (over 50,000), from over 600,000.00 in warrants collected and all of the rest ??? Can payroll be met ?
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written by Dave Sutherland, July 20, 2009
OK folks, get ready for the "unfortunate reality" of a water & sewer rate increase so the wasteful spenders can "make ends meet".
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written by Jo A Windham, July 20, 2009
Maybe we need to get rid of the City Administer and the insurance payments for Council Members Williams and Kana. This will save some money.
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written by Jo A Windham, July 21, 2009
I would just like correct my wording of the above comment.
Maybe we need to get rid of the City Administrator and the Health Insurance payments for Council Members Williams and Kana. This will save some money.
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written by CitizenCane, July 21, 2009
Cost-cutting measures? Time to pull straws to see which employees get to stay and which have to go for cost-cutting purposes.
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written by exposed, July 23, 2009
Negative Balance
Negative is fitting when it comes to the attitude of the Council but now they have taken it a step further, a negative balance in the General Fund to go along with their attitude. This is according to a financial audit for the fiscal year ending September 30th 2008. The audit was presented to the City on July 7th 2009. So how many months have pa*sed without an end of the month closeout to know where we stand, but keep on spending and hiring new personnel. The City budgeted $401,800 for property tax revenues but only accrued $178,547, a difference of $223,253. Isn’t this set by the tax rate? The City sets this figure, was it wishful thinking. You must have been counting on Magnolia Ridge that has only cost the City money since its conception. The Mayor boasts that Magnolia Ridge has sold NEARLY (key word) 20 lots. Nearly, almost, maybe, close to, that’s rea*suring, but not one home is standing, but we have water thanks to the citizens of Magnolia that the Mayor and Council shoved down our throats. Kelley said, our water and sewer funds are not making ends meet, it’s because the new well and water lines that was laid for Magnolia Ridge was suppose to offset the cost and pay for itself, that’s not happening. The investors dumped 3 million to continue the project, according to the Mayor. Is that, have dumped, will be dumping, or soon to dump. If we believe that we have just been dumped on. The audit listed municipal court procedures as a “significant deficiency”, Judge where did your money GO? Maybe you can get with Mr. Kelley; he also is missing 15 months that he cannot account for. I guess he doesn’t remember where he was, and he is watching over the City’s Finances. Smoke and mirrors, how many of us know what we have in the bank, how many of us balance our check books and stick to our budget. A famous quote from Councilwoman Williams “I believe in the professionals (Kelley) that’s what we pay them for”. I bet Kelley he knows what he has in his bank account. From an operational standpoint, the City is functioning fine, the report stated, another PROFESSIONAL statement.
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written by CitizenCane, July 23, 2009
Corrupt- false, untrustworthy. Corrupt, dishonest, venal apply to one, esp. in public office, who acts on mercenary motives, without regard to honor, right, or justice. A corrupt politician is one originally honest who has succumbed to temptation and begun questionable practices. A dishonest politician is one lacking native integrity. A venal politician is one so totally debased as to sell patronage. 3, 4. contaminated. 4, 5. putrescent, rotten, spoiled. 6. demoralize, bribe. 7. debase, vitiate. 10. contaminate, pollute, spoil, defile. 11. putrefy.
Do any of the words above remind you of the Magnolia City Counci?
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written by LittleMissMuf45, July 27, 2009
Heard through the rumor mill that direct deposits were not made on time this last pay day and that several employee's had some of their personal checks bounce ?? Employee's were paid with paper checks instead of direct and that was after pay day ???
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written by Ryan.Hess, July 27, 2009
This is occurring in cities and states all over the country, its the rapid drop in property taxes, a distinct result, among other things, of the housing market collapse. It's why California was 50 billion dollars in the hole, and most states having to slash their budgets in order to continue to operate. If you didn't think this would happen to individual cities, you're living in a pipe dream.
Do what you can to increase the rate in which warrants are collected, and yes, finish the housing projects as quickly as possible. If theyre not making enough money now, they surely will not make enough money sitting around uncompleted. Complete them, it can only make things better.
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written by towncryer, July 27, 2009
I'm not buying it...call in the Texas Rangers and investigate where the funds went to. Already we see the landscape contract overpaid by 500 bucks a month....I bet there's other little "mistakes" like that too...I am entering Magnolia into the most scandal ridden, backwater, podunct town contest right now...we should be ashamed of our so called town leaders and elected officials as well as the past performance of our police....very poor indeed.
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written by CitizenCane, July 27, 2009
The housing market is not why California is $50 billion in the whole.
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written by vivian whitley, July 28, 2009
Still the same small group making complaints. There is scandal because this small group is making it a scandal. Little miss muf45 heard it through the rumor mill. That's reasurring to know that's where you're getting your information.
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written by vivian whitley, July 29, 2009
There are no mising funds. Once again littlemissmuff45 makes a mistake. And citizen cane.
The word is "hole" not "whole" And what good would it do to get rid of the city administrator? You would just have to hire another one. And who would that be? Someone that would like to join your little band of troublemakers?
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written by magexposed, July 30, 2009
Ok lets look at this realistically, Ryan Kelley is the City Administrator, the Top Dog of the City. This man makes all the day to day decisions for the daily operations of the city of magnolia. Yet this man did not realize that the city did not have a signed Contract for 2006-2007 (Even though he was not there he should have reviewed the contracts and educated himself with them by now. Now he also did not realize that the monthly price increased a measly 500 smackers a month. He did not realize that his resume had an error and says that the council and mayor knew. Yet Dave Sutherland and Jimmy Thornton both claim that they did not know. Who is lying here? Mayor and Sutherland (who do not get along) or the big man on campus but knows nothing Ryan Kelley? You know most places will not even consider you as eligible for consideration if there are errors on your resume. You get your resume complete and true before you turn it in. Ryan and the City council has known about this report for some time now that the city is in the red for over a 100k, because if you go back and listen to Dave Sutherland who has been holding up big red flags (a par from a big red truck) about city financial problems for years. Maybe with the reports that more than 50% of the city’s budget going to Police Department they should look at a 10% pay cut on the Police Department’s budget since Rodger Carlies made the police departments pay increase comparable to the city of Houston and other way larger cities. From what I can tell the police department has at least 14 officers. They should take a page out of the City of Tomball book and bring on reserve officers to meet the any short falls that they have.(already I have saved the city money) Reserve officer are volunteers (usually news officer looking to get experience) the city of stagecoach is mostly reserve officers. Cut cost and tighten your belts at the city, is what the paper reported that Kelley said. Yet they spend more money on fireworks, magnolia music festivals and they are still in the whole. Has any one ask the question about where all this money that Carpenter brought in, the 600k in warrants that they were bragging about. What about the 50k that the city made in profits from the Magnolia Music Fesival , that big boy mayor was all Skippy about? Is the police department still spending extra money on overtime for their STEP program that back in the day old corrupt former chief Cunningham and Captain Smith where claiming was bringing in boo coos of money every month? Maybe they spent it all on paying settlements, hush money, and repairing police cars after the female officer and the now sergeant played tag in the brand new charger. Maybe some of the money went to paying to have the record expunged after Mr. lee was wrongfully arrested. The fact of the matter is that there is something a rye in magnolia. To take a page out of my newly found cousin Mr. Exposed’s book, Vivian this is all FACT.
Magexposed OUT
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written by vivian whitley, July 31, 2009
I think I will take what you're saying with a grain of salt. I think you and the rest of these people have twisted the facts and made mountains out of molehills. Because everytime I check on something (and not with any of the mentioned people-like the mayor or Ryan Kelley) I find a different story. I don't claim to have all the facts nor do I want to be a politician, but I know a load of XXXX when I read it. I have taken an interest in this because I have found out that there are some "special" people that want these particular offices that would end up making Magnolia a little greasy spot in the ground. At least right now I am seeing growth and progress. And as I have previously stated, every town is having problems during these trying economic times, to take facts and twist them till they are unrecognizable is wrong on several levels. So you and your newly found cousin keep trying, so far you're not winning any brownie points with the average citizen. Did I tell you I recently found a cousin I didn't know exsisted?
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written by exposed, August 01, 2009
I once believed as you do and thought, how could any of the things past or present be true, it's unbelievable, it's uncomprehensible. You will just have to find out for yourself we live and learn. You go girl, just don't ever disagree with Patsy or question any of the issues as we are doing with Facts and ask those to explain. I'm guessing you don't live in the City limits, and feel the pain of the water rates, tax rates or the concerns over Magnolia Ridge, or the money we are paying a second time for City hall. Now a negative balance in the budget and those who are being paid good money don't have a clue. Tell ya what Vivian move into the City feel the pain then you can tell us you know bullxxxx when you read it, because we are living it. I know, you could be the first on the block in Magnolia Ridge and maybe we could get a little of the impact fees the council waved four years ago.
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written by vivian whitley, August 03, 2009
I still see progress in the city. Whitle I do not live there, my kids have attended Magnolia schools since 2000 and have graduated from these schools. The pain is everywhere, this is what I'm telling you, not just Magnolia. And outside of these blogs attacking Ryan Kelley more than anyone, what have you done to make it better. I know the people in Magnolia, not the politicians. Jimmy Thornton, helped during the hurricane, got his hands dirty making sure everyone was ok. When we weren't allowed to deliver sandwiches to the temporay shelter during the height of the storm Jimmy Thornton did it. Ryan Kelley stop what he was doing to help a serious cause in Magnolia, an empty food pantry. He wasn't asked for his time but volunteered it. Patsy and Jonny Williams among many others delivered food to those in need that couldn't get to the outreach locations. These are people I want to know. If you are going to attack the politics, do that. Attacking the individuals on personal levels is wrong. All the things you have been tearing Ryan Kelley apart for are little hiccups in the big picture. Just because I don't live in the city limits doesn't mean I don't work play and run through there on a daily basis. But as long as I see progress in the city I call home, I will continue to support the city and all it does to help others. Sorry you don't feel the same. I think I said before, if you would only use your powers for good not evil, everyone working together would only make things better.
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written by CitizenCane, August 08, 2009
How will the negative balance be corrected? Will the property tax rate be increased? Will city service user fees be increased?
According to the paper out today but not yet posted on this website, the Police Chief is asking for raises for his employees as well as more cars. Is that the answer to the negative balance?
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| Last Updated ( Monday, 20 July 2009 08:42 ) |
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