Council approves contract to outsource finance director duties; authorizes project payments and building repairs

The City Council approved a contract to hire an outside finance‑services firm to perform interim finance director duties and stabilize the city’s accounting functions.

The City Administrator told the council the 22‑page contract would begin Sept. 1 and run through Dec. 31, 2026, and that the firm would provide broad services including cash‑flow management, reconciliations, monthly and quarterly statements, audit preparation and human‑resources support. The administrator said the monthly fee is about $7,700 and that the firm would do a one‑time retrospective review of January–July 2025 for about $15,000; he estimated transition and service costs could be roughly $200,000 overall.

The administrator said, “my recommendation as city administrator … is to not fill the finance officer role” while the outside firm performs those duties, arguing that third‑party services would let the city clean up internal controls and prepare for a clearer hiring decision later.

Why it matters: Council members were told the payroll and audit functions still require oversight and that bringing in the vendor would allow staff to correct bookkeeping and reconciliation problems identified after the prior finance director left. The administrator and personnel committee framed the contract as a short‑ to medium‑term intervention to restore stable reporting and accountability.

In the same meeting the council moved several related items. Members approved a recommendation to issue final partial payment and close out a long‑running public‑works contract (change order number two) and authorized staff to begin a grant application for the Six Street reconstruction project, which the administrator said may cost roughly $400,000 for full surface replacement if funded. The council also approved a contractor bid from L&M to repair water‑related damage and rot above a staff office and the front of the city building; the bid shown in the packet was $13,675 plus an $800 interior sheetrock charge (just over $14,000 total).

Quotes and sourcing: The presentation and direct quotations came from the City Administrator during the council’s presentation and discussion. Council members participated in votes and asked for regular updates; staff members Jesse and Sue were named as members of the vendor’s team who would assist with budget work.

Votes at a glance: • Motion to adopt the meeting agenda — moved, seconded and approved by the council (transcript records “All in favor?” followed by affirmative responses). • Motion to approve final payment and close out contract (change order #2) — moved and seconded; council voice vote recorded as in favor. • Motion to start a grant application for Six Street reconstruction — moved, seconded and approved. • Motion to approve L&M bid for front‑of‑building repairs (including the $800 interior charge) — moved and seconded; approved. • Motion to approve contract for outsourced finance services (vendor contract beginning Sept. 1) — moved, seconded and approved. (Transcript does not record named movers/seconders or a roll‑call tally for these motions.)

What the contract covers: The administrator said the vendor would provide outsourced finance‑director services (monthly fee ~ $7,700), HR support (estimated $2,500–$4,500 depending on scope), and a one‑time forensic/retrospective review (~ $15,000) covering early 2025 activity. He said the vendor cannot both provide finance services and perform the audit, though it will prepare audit materials for a separate auditor.

Staffing and next steps: The administrator asked the council to consider creating a full‑time office staff position to support day‑to‑day operations while the finance work is stabilized; he asked the personnel committee to develop role parameters. He also pledged regular updates to the council and monthly reporting from the vendor as the transition proceeds.

The meeting included a brief recognition of a visiting state representative (named in the transcript as Keith Allen/Keon) and concluded with council appreciation for staff who have covered added duties during the transition. The council did not set a final date to repost or permanently fill a finance position while the outsourced contract is in effect.