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Local News

April 25, 2013

CVP&D paying down loan

Iowa’s auditor Monday released an audit report for Chariton Valley Planning and Development, a Council of Governments, for the fiscal year ending June 30, 2012.

The Centerville-based council took in $369,921 in receipts: $235,397 from intergovernmental; $113,485 from matching transportation reimbursements; and $20,750 from membership dues.

Disbursements for the year came to $314,264: Salaries and benefits totaled $100,225; office equipment and supplies totaled $19,981; legal, accounting and auditing totaled $10,342; and principal and interest payments totaled $146,188.

Interest payments due to long-term debt came from two different loans. Both originated with First Iowa State Bank and both loans had a 7.125 percent interest rate.

The council’s long-term remaining debt for the year ending June 30, 2012: Line of credit originating from July 2, 2007 was $90,303: Line of credit originating March 26, 2009 was $356 for a total of $90,659.

The first loan was taken out on July 2, 2007 for a line of credit not to exceed $200,000. The line of credit originally matured on Jan. 30, 2008 but was extended several times to a maturity date of July 31, 2012. On July 18, 2012 the council refinanced the remaining balance with a maturity date of Aug. 17, 2017.

The second loan was taken out on March 26, 2009 for a line of credit of $35,000 set to mature on Oct. 31, 2009 but was extended until the note was paid in full on July 16, 2012.

A contingent liability the state auditor addressed in this audit was the special investigation of CVP&D dated Feb. 7, 2012 that identified $101,789 of disbursements which were an unallowable use of federal funds for programs administered by the council. Any disallowed claims from grantor agencies, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of disbursements which may be disallowed by the grantor cannot be determined at this time, states the audit.

The audit questioned two disbursements: $247 paid to Honey Creek Resort State Park for an office Christmas party and $104 paid to Hy-Vee for cake and bakery items for transportation planning meetings. The payments may not have met the requirements of public purpose since the public benefits to be derived have not been clearly documented.

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The Iowegian wants readers to think about the solicitation ordinance that will prevent groups or individuals from entering a roadway to solicit money. The Centerville City Council in June by a 5-0 vote passed the first reading of just such an ordinance. Public pressure and during a subsequent special meeting, the council voted 3-2 to table the ordinance. A second special meeting to discuss the solicitation ordinance is scheduled for 5:30 p.m. Thursday, Aug. 7 at City Hall. So, the question of the week is, "Do you or do you not support the ordinance to prevent solicitation of funds in city streets?"

A. I support the ordinance
B. I do not support the ordinance
C. Not sure
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