Representatives from Jefferson City-based accounting firm Williams-Keeper LLC presented the city's annual audit and financial report for the 2018-19 fiscal year Monday during a work session of the Mexico City Council. The city received an unmodified, or clean audit, which is the best the city can receive.

The city releases a comprehensive annual financial report, or CAFR, after the audit process finishes, which included Monday's review of the report by Amanda Schultz and Kristen Brown, both of Williams-Keeper.

Schultz reviewed the firm's opinion on city financial statements, while Brown reviewed the communications given to Mayor Ayanna Shivers and the rest of the city council. Schultz is Williams-Keeper's lead partner on governmental audits, while Brown is the lead supervisor on governmental audits, and was in charge of Mexico's audit.

Williams-Keeper does not prepare the city's financial statements. Those are tabulated by the city's administrative services department. Williams-Keeper does review them for any inconsistencies. The firm does not review all city financials. In other words, they do not look at the day-to-day financial transactions, but do look at the city's overall financial statements.

The city's CAFR does include more than the basic financial reporting requirements, Schultz said. The report includes an introductory section and statistical section.

"There's a lot of good information [in those sections] to support the financial statements," she said.

The unmodified opinion means the financial statements are properly prepared by city staff according to generally accepted accounting principles.

"This ultimately means the users of your financial statements can rely on them. So both the financial statements themselves and the notes that support them," Schultz said.

The city saw an increase in revenue of $768,000 from grants and contributions due to the Holt Street grant and two sidewalk infrastructure grants. The city did however have a decrease in revenue due to declining franchise and sales taxes, $384,000. City capital assets also increased $1.28 million, or 1.6%.

The city's liabilities decreased about $635,0000 due to debt service payments. Despite these changes, the city's total revenues were fairly consistent with 2017-18. The city did, however see increased expenditures, $993,000 or 12%, on capital outlay, or funds set aside for city capital projects, such as city infrastructure improvements. Operating revenues and expenses were stable, though. The city continues to increase its net position in its funds.

"So, essentially net income of about $504,000 during fiscal year 2019, compared to $408,000 in fiscal year 2018," Schultz said.

The auditor's communication letter also highlighted that city financial statements were neutral, consistent and clear, Brown said. Willliams-Keeper had no difficulties in working with city staff, she added.

"Roger [Haynes] and Vicki [Duenke] are great to work with as well as all their staff,” Brown said. “They provide everything in a timely manner before, during and after field work and getting reports prepared."

Engineering agreements; Equipment purchase

The city council approved agreements with two engineering firms — Bartlett and West of Jefferson City and Engineering Surveys and Services of Columbia — to be the city's on-call project engineers. Requests for qualifications were sent to nine area engineering firms. The qualifications were reviewed and by Haynes, Parks and Recreation Director Chad Shoemaker and Public Works Director Kensey Russell.

"They were scored independently on a ranking sheet and then we met together to discuss it," Russell said.

Bartlett and West already was one of the city's on-call engineering services. They helped with the Holt Street engineering design. Engineering Surveys and Services also was selected because of its scope of services being slightly different to Bartlett and West, which gives the city a broader range of services to access and so if one firm is not available for a project, the other might be, Russell said.

"These are master services agreements. There's no cost to enter into them. Any services we would ask them to perform would be handled through a task order," he said.

Engineering Surveys and Service has done work in the Mexico community in the past, which helped with the selection process.

Two vertical-shaft sump pumps at the Mexico wastewater treatment facility are more than 20 years old. The city council approved a bid from Municipal Equipment Co. Inc. of St. Louis for $13,365 to replace the two pumps. The cost is part of the $60,000 budget for building improvements at the wastewater facility and would be the first expense applied to that budget allowance.

"These pumps are in our sludge pumping building," Russell said.

The pumps are in the basement with the sump pit about 7.5 feet deep and any of the sludge in them is pumped up about 20 feet. Any pumped sludge is put back into the treatment system, he said.

In other business:

— The city council declined to seek an ordinance to allow street parking on the north side of East Jackson Street, between Coal and Calhoun streets. The city had received a request from a resident for the council to consider an ordinance. A preliminary review by the city's engineering department did not have objections for the on-street parking, but other city departments did, City Manager Bruce Slagle said.

"Based on that finding, I had determined and sent a letter, which in the best interests of the community that [city staff] would not recommend a change," he said. "The individual did appeal to the council to change that parking [through an ordinance]."

— Mexico resident Joshua Price inquired why a handicapped stall in the men's changing area of Fairgrounds Pool had been taped shut over the summer. Shoemaker said he would look into the reason, but did offer that aging equipment may be a factor.

"Because of the kind of fixtures they put in that pool house, they are not readily available now, he said. “We can't replace some of those parts. [The handicapped stall] should be open. I'll find out what happened.”

— The January Munch with the Mayor is 11 a.m. Thursday at the Hart Career Center. The Jobs for America's Graduates program at the center had requested to host the event, Shivers said. Shoemaker will be present to share about Fairground Pool

— The Fairground Pool informational public meeting is 6 p.m. Feb. 4 at the Audrain County Courthouse basement community room.

cdunlap@gatehousemedia.com