Delayed audit, Girod Street wheelies and several prepared statements dominate city’s budget hearing
MANDEVILLE — Mayor Clay Madden assured the City Council that Mandeville remains financially sound despite a delayed annual audit that officials traced to fixed-asset records dating to the 1960s and at least one city asset whose original purchase price was listed in Confederate currency.
Councilman-at-Large and Council Chairman Scott Discon opened the hearing by reading from a prepared statement welcoming everyone to the hearing.
“As Mandeville’s councilman at large and your council chairman, I want to thank everyone for being here tonight as we undertake the important responsibility of reviewing the people’s budget,” Discon said from the prepared statement.
In a second prepared statement, Discon asked Councilman-at-Large Jason Zuckerman to lead the Pledge of Allegiance.
“I pledge allegiance …,” Zuckerman began without prepared remarks, briefly alarming the two citizens in attendance.
Much of the early discussion centered not on the proposed budget but on the city’s delayed annual audit, which officials said was complicated by an ongoing effort to reconcile decades-old fixed-asset records.
Finance officials said some of the records date to the 1960s, when municipal accounting standards apparently consisted largely of writing “city stuff” on a piece of paper and putting it in a drawer.
Among the assets still being reconciled are three typewriters, a mimeograph machine, two desks last seen during the Johnson administration and a 1967 backhoe that was apparently depreciated for 43 years as “miscellaneous.”
Officials also said the city may own a mule.
“We haven’t found the mule,” Madden said. “But until the auditors tell us otherwise, we have to assume it’s still an asset.”
“Trader Joe’s is now open,” Madden added.
Madden, who arrived several minutes late to the city’s budget hearing after getting stuck behind a group of teenagers riding wheelies down Girod Street, said the administration inherited many of the accounting issues and has been working methodically to correct them.
The mayor was temporarily unable to provide additional details because the relevant documentation was stored in a filing cabinet that had not been opened since the Apollo 11 Moon landing.
“As your councilman at large, I think the citizens of Mandeville deserve to know where their mule is,” Discon said in a prepared statement.
Zuckerman asked whether any of this would affect the proposed fiscal year 2027 budget.
“No,” Finance Director Jessica Farno said.
Zuckerman asked whether the city could then discuss the budget. Discon consulted his prepared statement. “Eventually,” he said.
The proposed budget projects the city’s unassigned General Fund balance at roughly 43% of annual operating expenditures, above the council’s recently adopted target range of 30% to 40%.
The disclosure raised the unusual prospect that Mandeville could enter the next fiscal year with slightly too much money.
Councilwoman Jill Lane sought clarification. “So a deficit would be bad, right?” Lane asked.
Farno said yes.
“And having money is good, right?”
Farno nodded in agreement.
“But having too much money is bad?”
Farno looked at the ceiling, then added, “Apparently.”
Lane nodded.
“OK,” she said. “I think I’m getting it.”
Discon fired back, saying the city’s financial position should not distract officials from their responsibility to complain about it.
“As Mandeville’s councilman at large, your council chairman and someone who takes very seriously the responsibility entrusted to me by the citizens of this community, I believe it is incumbent upon us to remain vigilant,” Discon said in a prepared statement.
Zuckerman, who was not absent, asked what specifically the council should be vigilant about.
The hearing then moved into a discussion of capital spending, including projects that will require the city to temporarily advance money before receiving reimbursement from outside sources.
Madden explained that the reimbursements could occasionally create timing differences in city financial reports.
He was 11 minutes late providing that explanation because a train was blocking Girod Street.
Mandeville does not have a railroad.
“It’s complicated,” Madden said.
Lane returned to the broader financial question.
“What if,” she said, “we just spend less money than we take in?”
The council recessed for 20 minutes while city officials investigated.
Upon returning, Farno confirmed that Lane’s proposal could, in theory, prevent a deficit.
“That’s essentially how a balanced budget works,” Farno said.
Lane smiled.
“I knew there had to be a way.”
In a prepared statement drafted during the recess, Discon praised the councilwoman for asking important questions.
“As your councilman at large and chairman of your Mandeville City Council, I have always believed that good government begins with asking difficult questions,” Discon read.
After nearly two hours of discussion, Zuckerman asked whether there were any remaining questions about the proposed FY2027 budget.
Discon shuffled several pages.
“As your duly elected councilman at large, chairman of the Mandeville City Council, King of the Andals, the Rhoynar, and the First Men, longtime resident of this great community and the individual presently entrusted with possession of this gavel, I believe we have accomplished a great deal tonight,” Discon said in a prepared statement.
No additional questions were raised.
“As Mandeville’s councilman at large, your council chairman, the King of Sting, the Master of Disaster, and, most importantly, a citizen who cares deeply about the future of this community, I move that we adjourn,” Discon said in his final prepared statement of the evening.
The motion passed unanimously.
Lane asked whether that was good.
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