Willmar won’t lose money over reporting delay

WILLMAR - A state Revenue Department official has said Willmar will not receive its December 2015 local government aid payment of $2,244,657 from the state if the city does not submit its 2014 financial report by Sept. 30.
Cities are required by law to report their financial activities annually to the State Auditor’s Office, according to Kathy Docter, director of the government information division of the State Auditor’s Office,
The deadline was requested by Docter in a Sept. 8 letter to Mayor Marv Calvin, with copies to state Sen. Lyle Koenen, Rep. Dave Baker and Interim City Administrator Kevin Halliday.
City Finance Director Steve Okins told the City Council this week that the city’s financial statements were uploaded June 25 to the state using the state’s electronic format, five days before the June 30 deadline.
However, Okins said the hard copy of the comprehensive annual financial report is still being reviewed and printed by staff and the city’s auditors, and he asked the state in a June 25 email for a 45 to 60 day extension for filing the hard copy.
Okins cited a staffing shortage in his office for the past two and half years as the reason why the final report has not yet been submitted. City staffing levels have caused workload and scheduling difficulties that are continually being worked on, he said.
Okins said he has had conversations with Rice Memorial Hospital and the Municipal Utilities, which are components of the city, to have their annual financial reports completed sooner to be included in the city’s comprehensive report.
He also said staff conversations with both the city and State Auditor’s offices are ongoing to establish a schedule to meet the Sept. 30 deadline to assure no loss of LGA to the city.
Okins discussed the reporting delay with the council Monday night during a budget work session on 2016 spending proposals.
Okins said his goal was to have the report filed with the state by the end of this week. Okins tried to allay council members’ concerns that the city would lose about half of this year’s local government aid if the deadline was not observed.
“Our goal and direction is to get it out by the end of the week,’’ Okins said.
Council member Audrey Nelsen expressed concern and frustration, saying the council has asked multiple times if the work is getting done.
She said the council has been told the work is getting done, “and obviously it’s not.’’ She also asked who is responsible.
“The letter is pretty formal. It’s a lot of money. Do we need to bring people in?’’ she asked.
Finance Committee Chair Denis Anderson said he also has a concern why this continues to happen.
“Can you give us assurance that next year we’ll be in compliance?’’ Anderson asked.
Okins assured Anderson the reports will be in by June 30 next year.
Council member Tim Johnson said he appreciated Nelsen’s concerns and the response by Okins, and Johnson said he understood the staff shortages.
“But we’re talking about LGA funds,’’ he said. “Regardless of staffing, it seems to me that should get priority over just about everything else. I don’t know if the state has ever withheld LGA funds. I find it hard to believe they would, but there’s always a first time.’’
Johnson said the city “would be dead in the water’’ and services “would come to a screeching halt’’ without that payment.
Council member Ron Christianson said he has full faith in staff to do the right thing, and he said Okins was assuring the council the work would get done.
“I don’t think we can sit here and blame anybody,’’ he said “It will get done.’’
Anderson asked Okins to tell the council in the future if problems arise.
“If it looks like you’re having a problem, please let us know that there’s a problem,’’ he said.