The Charleston city council was presented with the annual city audit review at Tuesday’s meeting at City Hall.

Joyce Madigan of the accounting firm of Gilbert, Metzger and Madigan of Charleston showcased highlights of the required annual audit of the city’s finances of previous year’s expenditures from May 1, 2010 to April 31, 2011.

“The audit provides an excellent synopsis of what’s happened in city within the past year,” Madigan said.

Madigan said the accounting firm found no major problems during the audit process.

She said the firm has seen other clients in the area struggle due to the declining economy. However, she said Charleston continues to positively keep up with their finances.

“We’re impressed by the proactive steps that the city takes to keep the financials in good position,” she said. “You’ve managed to keep things in line and keep expenditures in line with a healthy end balance to keep you moving forward.”

Madigan stated in the review that the city had more than $500,000 in federal expenditures, which subjected them to extra compliance testing.

Madigan said in the audit review, the firm did implement a required change that changes the way the fund balance is presented.

The balance is now divided into non-spendable, restricted, assigned and budgeted categories.

Madigan said non-spendable refers to prepaid expenses, while restricted allowances cannot be used except for what they are specifically allocated.

She said assigned allowances may be decided that certain monies are assigned in financial statements. Budgeted allowances are pre-assigned.

Madigan said the report also discloses any funds that exceed allocations.

She said all reports and data collection have been completed and submitted to the federal government and the Department of Insurance.

The council voted on a resolution implementing the provisions of the Illinois Pension Code Act and approving fire and police pension board report with regard to the annual tax levy.

Mayor John Inyart said this resolution is a statutory requirement puts the council on notice as to the condition of the pension funds so the council can intelligently discuss the tax levy.

The file will remain available for public inspection until the next meeting on Tuesday, Dec. 20.

The council also voted to approve an ordinance for the annual tax levy for the fiscal year of May 1, 2012 to April 20, 2013.

Inyart said the tax levy will be used as a benchmark for raising citizens’ tax based on inflation.

“This is how much money we need to run the city on,” he said. “It will be capped and reduced based on what the financial value of the property is.”

City Manager Scott Smith said the current tax levy is based on property values.

He said this amount is in flux until the board of review meets after the first of the year.

Inyart said the final calculation will be made some time in March.

The council also voted to approve purchasing a plot of property adjacent to the water treatment plant at 2801 McKinley Drive for $150,000.

Inyart said the council obtained grant from the Charleston Area Charitable Foundation for half that amount, so the cost of the lot to the city will be $75,000.

“I think this will allow us a lot more control back in the McKinley area,” he said. “I think it’s in our best interest to own it.”

Smith said the city has purchased pedestrian marking devices to be implemented on Fourth Street.

Smith said the devices were ordered after seeing their effectiveness at Southern Illinois University Carbondale.

He added that they will most likely be installed before students’ return to campus after Christmas break.

He said depending on their effectiveness, the devices may be installed campus-wide at crosswalks.

“I think it will slow down traffic on Fourth Street and give rise that there’s a cross walk there,” he said.

Sara Hall can be reached at 581-2812 or [email protected].