|Chris Flaig, of BKD*, the City of Monroe's independend auditing company, told the board that several city funds were operating with cash deficits. He suggested establishing an audit committee. Mayor, Mike Morris said council will evaluate putting an audit committee together to work with its finance committee in order to come up with a financial plan.
Funds operating in the red include Police and Fire. The city has recently negotiated bargaining agreements with the fire and police departments that increased the city's costs significantly. Police and Fire funds are not adequate to cover the higher labor costs that the departments negotiated. Money is diverted from the general funds to keep both Police and Fire Departments operating.
Dave Collins, the City Finance Director, said "The city will have to make cuts in spending." Eliminating staff has not been ruled out, but new equipment purchases and City Fest have been cut from this year's budget.
Robert Youtsler said of the budget problems, "We are operating the city (of Monroe) on a village budget."
*BKD is the 7th largest certified public accounting and consulting firm in the country. To find out more visit their website at BKD.com