Gibson: Action fended off state takeover of Stevensville
Council president says steps taken ensure the village has its 'checks and balances in place'
By WILLIAM F. AST III - H-P Staff Writer
Published: Friday, February 12, 2010 1:09 PM EST
STEVENSVILLE
Once Stevensville Village Council members knew their financial books were in such disarray an audit was impossible, their quick action prevented a takeover by state officials, council President Lori Gibson said.
"The council was in 100 percent agreement on what we needed to do," Gibson said at Thursday's Village Council meeting. "We put steps in place. That helped us from being taken over by the state."
State officials also knew the village had quickly contacted Berrien County Treasurer Bret Witkowski, a former manager of the village, Gibson said. The state recognizes Witkowski's knowledge of municipal finances, and that was another positive factor, she said. Witkowski is now serving as Stevensville's interim manager.
In the case of the village of Three Oaks and its recent financial crisis, the Michigan Department of Treasury appointed an emergency financial manager to take over village operations and help prepare a five-year deficit elimination plan. Stevensville was able to avoid that, Gibson said.
Treasury officials have since audited Stevensville's finances for the past two fiscal years and will present that audit at a special council meeting on Wednesday. Gibson on Thursday said the state will likely do an audit on the current fiscal year as well.
"I think they will, and I'm thankful for that," Gibson said after the meeting. "It will keep us on our toes and make sure we have all our checks and balances in place. It's Government 101, and that's what we're going to do."
In response to a question from former council member Carl Steinberger, Gibson said the audit will probably include a number of recommendations to improve operations and financial accountability. Witkowski already has put a number of checks and balances in place, she said.
For example, the village clerk prepares bills, the treasurer brings bills with checks attached to Gibson, who reads each bill, and both Gibson and the treasurer sign the check. For deposits, one official makes out deposit slips, and another official actually makes the deposits, Gibson said.
Also Thursday, the council approved budgets for the upcoming fiscal year, which starts April 1.
The general fund shows revenues of $475,100 and expenditures of $376,020, leaving a balance of $99,080.
Witkowski said the balance may be misleading, as the village has unpaid bills in the current fiscal year totaling more than $262,000. He has restricted bill payments to no more than $35,000 a month until the arrearage is paid off.
In other matters, the council approved six organizations that may use the corner of St. Joseph Avenue and John Beers Road for fundraising.
They are the Stevensville American Legion, Lakeshore Lions Club, Good Fellow Fund, Miss Stevensville and Court, Lakeshore Public Schools, and Relay For Life. Municipal organizations such as the Lincoln Township Fire Department will also be considered, council members said.
wast@TheH-P.com
