The City Council of Webster City approved the 2020-2021 City Audit Monday night as the council met in regular session at city hall.
Members of the public, as well as Councilman Brian Miller, joined the meeting via Zoom. The meeting was also live-streamed on the city’s Facebook page.
Justin Jacobsma, representing Williams & Company, the firm conducting the city’s audit, walked the council members through the audit report.
He listed a few financial highlights, offering a “high level” look at the report.The city had $11.5 million in construction progress on various projects, He also noted that the street department shop project was completed in 2021.
The city also issued $9.690 million in general obligation refunding bonds and $5.055 million in water revenue refunding bonds.
Another item that Jacobsma pointed out were the approximately $60,000 in donations to area non-profit organizations. The list included”
Community and Family Resources, $3,700;
Domestic/Sexual Assault Outreach Center, $2,280;
YSS of Hamilton County, $10,000
Webster City Area Chamber of Commerce, $20,000
Building Families, $25,000.
The council discussed the donations to nonprofits following the audit presentation. City Attorney Zach Chizek offered a legal opinion to the council concerning the donations. Chizek told the council that recently, the state auditor has been reviewing various communities as to their donation practices.
“In light of this, we as a City Government need to ensure that we’re in compliance with the rules, statutes and regulations regarding donations of city funds,” he said in his opinion.
He explained that the city needs to enter into either a contract or memorandum of agreement with the nonprofit providing for the services being provided from the non profit that benefits the city. The state auditor outlines seven requirements that the city must undertake in drafting a contract or memorandum.
“I’m not so ‘doom and gloom’ that we can’t do this . You can still do this,” Chizek told the council. “Other communities are dealing with the same thing.”
He said as long as the city follows the requirements, and the donations to the non-profit are for the greater good of the community,
“The question we’ll run into is when groups ask for funds, we’ll have to pinpoint exactly what public purpose (the funds are) serving,” Chizek said.
View this article as it appeared in the Daily Freeman-Journal.
Last modified: January 19, 2022