chad
16th January 2012, 10:59 AM
be interesting to see if they suddenly "find" a bunch of money they "forgot" they had, etc. that cafr dude should be all over this one.
http://www.omaha.com/article/20120116/NEWS01/701169947
BLENCOE, Iowa — Mayor Kristie Ruffcorn learned a hard lesson in 2011.
She lost her re-election bid by 30 votes in this western Iowa town of 224 that she had served since the mid-1990s. Friendships have been strained, reputations sullied and her town is not able to collect property taxes this fiscal year — all because the city's former part-time clerk missed a deadline to file an 13-page form with the Iowa state auditor and the mayor failed to follow up.
"Keep on top of everything," Ruffcorn said, asked what advice she would share with other small-town mayors. "Try to assist in any way possible to make sure that this doesn't happen."
The missing form, a financial report from the 2010 fiscal year, deprives flood-damaged Blencoe of its legal authority to collect property taxes this fiscal year.
While a year without local property taxes might sound like good news to residents still recovering from Missouri River flooding, it is shaving the town's nearly $200,000 annual operating budget by roughly a third.
"They did not have an annual financial report, therefore they could not have a budget," said Steve Ford, a fiscal and policy analyst for the Iowa Department of Management. "Statutorily, you can't spend public funds without a budget ... so they can't collect taxes."
All cities in Iowa follow the same budgeting rules. They first produce a financial report wrapping up the previous fiscal year. Then they draw up budgets, identifying tax rates for the coming year and estimating how much revenue they plan to collect.
Blencoe filed its budget on time, but the filing lacked the previous year's financial report. A Monona County auditor picked up on the discrepancy in time, warned the Blencoe clerk more than once and was assured that things would be handled. They were not.
"You ask most city officials: This is not an onerous process. It's just not," said Alan Kemp, executive director of the Iowa League of Cities. "It's very easy to make the timeline. So most cities don't have a problem."
Many larger communities employ accountants and administrators who make sure everything goes as it should. But smaller towns rely on city clerks.
Generally, one or two Iowa cities per year get themselves into Blencoe's predicament. No comparable number for Nebraska was immediately available. Last year, Beaconsfield, Iowa, could not collect property taxes. The year before, New Albin could not. The previous year, Coin, 83 miles from Omaha, went without.
Coin ran into trouble after three of its city council members quit and notices were not printed when expected in the local newspaper, said Karlette Thornton, mayor at the time. No quorum means no legal council meeting, and that means no budget passed in time.
The Iowa League of Cities conducts six budget workshops per year to help local officials and clerks through the process and sets up small-town clerks with mentors, if needed.
Ford, who specializes in city property tax issues at the Department of Management, makes himself available to those who need help. The department can grant deadline extensions.
But after June 15, if the complete budget is not in to the state, nothing can be done. And Blencoe missed that drop-dead date.
The Blencoe city clerk is a part-time position that pays $9 per hour. From January 2008 to September 2011, that job was held by Kym Harris of nearby Onawa.
Ruffcorn, the former mayor, said she was pleased with Harris' performance and work ethic, saying she worked through a significant recent illness. Last summer, during the flood, she made calls and arranged water and other items for volunteers filling sandbags.
"She bent over backwards to do everything and anything to help out," said Ruffcorn, a home-health aide.
Ruffcorn says she was unaware there was a problem until the Department of Management sent her a letter June 27. It said the town would be able to collect $0 for its tax levee in fiscal 2012, which began July 1, 2011.
Council members told Ruffcorn to seek Harris' resignation.
"It was one of the hardest things I ever had to do," Ruffcorn said. "I've tried calling her and she won't return my calls. I feel bad."
Reached at home last week, Harris said she could not recall whether anyone had tried to reach her about completing the form. She was going through cancer treatments and "everything was kind of in turmoil."
"It was just a clerical error," she said. "It just got missed is all."
The city collected $64,297 in property taxes during fiscal year 2011. This year, without the ability to collect taxes, there are still bills to be paid. Public buildings to be heated. Snow to be pushed from the streets.
One option being considered is taking out a loan and using future taxes to pay it off.
The city's new clerk, Deb Alexander, is determined to ensure that there are no repeats.
She is preparing an informational meeting with the City Council on Jan. 25, to make sure members understand the budgeting process. She already made sure the proper financial report, this one for fiscal 2011, was turned in on its due date of Dec. 1.
"Everything is up to date," she said. "Everything at this point is ready."
http://www.omaha.com/article/20120116/NEWS01/701169947
BLENCOE, Iowa — Mayor Kristie Ruffcorn learned a hard lesson in 2011.
She lost her re-election bid by 30 votes in this western Iowa town of 224 that she had served since the mid-1990s. Friendships have been strained, reputations sullied and her town is not able to collect property taxes this fiscal year — all because the city's former part-time clerk missed a deadline to file an 13-page form with the Iowa state auditor and the mayor failed to follow up.
"Keep on top of everything," Ruffcorn said, asked what advice she would share with other small-town mayors. "Try to assist in any way possible to make sure that this doesn't happen."
The missing form, a financial report from the 2010 fiscal year, deprives flood-damaged Blencoe of its legal authority to collect property taxes this fiscal year.
While a year without local property taxes might sound like good news to residents still recovering from Missouri River flooding, it is shaving the town's nearly $200,000 annual operating budget by roughly a third.
"They did not have an annual financial report, therefore they could not have a budget," said Steve Ford, a fiscal and policy analyst for the Iowa Department of Management. "Statutorily, you can't spend public funds without a budget ... so they can't collect taxes."
All cities in Iowa follow the same budgeting rules. They first produce a financial report wrapping up the previous fiscal year. Then they draw up budgets, identifying tax rates for the coming year and estimating how much revenue they plan to collect.
Blencoe filed its budget on time, but the filing lacked the previous year's financial report. A Monona County auditor picked up on the discrepancy in time, warned the Blencoe clerk more than once and was assured that things would be handled. They were not.
"You ask most city officials: This is not an onerous process. It's just not," said Alan Kemp, executive director of the Iowa League of Cities. "It's very easy to make the timeline. So most cities don't have a problem."
Many larger communities employ accountants and administrators who make sure everything goes as it should. But smaller towns rely on city clerks.
Generally, one or two Iowa cities per year get themselves into Blencoe's predicament. No comparable number for Nebraska was immediately available. Last year, Beaconsfield, Iowa, could not collect property taxes. The year before, New Albin could not. The previous year, Coin, 83 miles from Omaha, went without.
Coin ran into trouble after three of its city council members quit and notices were not printed when expected in the local newspaper, said Karlette Thornton, mayor at the time. No quorum means no legal council meeting, and that means no budget passed in time.
The Iowa League of Cities conducts six budget workshops per year to help local officials and clerks through the process and sets up small-town clerks with mentors, if needed.
Ford, who specializes in city property tax issues at the Department of Management, makes himself available to those who need help. The department can grant deadline extensions.
But after June 15, if the complete budget is not in to the state, nothing can be done. And Blencoe missed that drop-dead date.
The Blencoe city clerk is a part-time position that pays $9 per hour. From January 2008 to September 2011, that job was held by Kym Harris of nearby Onawa.
Ruffcorn, the former mayor, said she was pleased with Harris' performance and work ethic, saying she worked through a significant recent illness. Last summer, during the flood, she made calls and arranged water and other items for volunteers filling sandbags.
"She bent over backwards to do everything and anything to help out," said Ruffcorn, a home-health aide.
Ruffcorn says she was unaware there was a problem until the Department of Management sent her a letter June 27. It said the town would be able to collect $0 for its tax levee in fiscal 2012, which began July 1, 2011.
Council members told Ruffcorn to seek Harris' resignation.
"It was one of the hardest things I ever had to do," Ruffcorn said. "I've tried calling her and she won't return my calls. I feel bad."
Reached at home last week, Harris said she could not recall whether anyone had tried to reach her about completing the form. She was going through cancer treatments and "everything was kind of in turmoil."
"It was just a clerical error," she said. "It just got missed is all."
The city collected $64,297 in property taxes during fiscal year 2011. This year, without the ability to collect taxes, there are still bills to be paid. Public buildings to be heated. Snow to be pushed from the streets.
One option being considered is taking out a loan and using future taxes to pay it off.
The city's new clerk, Deb Alexander, is determined to ensure that there are no repeats.
She is preparing an informational meeting with the City Council on Jan. 25, to make sure members understand the budgeting process. She already made sure the proper financial report, this one for fiscal 2011, was turned in on its due date of Dec. 1.
"Everything is up to date," she said. "Everything at this point is ready."