This policy is another step forward for the city in repairing its finances. The city’s external auditor, Bud Addison, and a team of accountants from the Municipal Association of South Carolina recommended several things the city should do to correct its accounting.

The first was to hire an outside accounting firm to be the city’s internal auditor. The accounting firm should report directly to City Council so the city’s elected officials would be the first to know when problems arise. Council members have agreed to do this but have not yet selected a firm.

The second was to adopt a formal investment policy. The city had an informal investment policy — informal as in the city did not follow it. The old policy said the city would not invest in anything longer than seven years. They did anyway. The new investment policy specifically states that the City Manager has to make sure the city treasurer and CFO abide by the policy. Council members can also “revoke the authority of the Chief Financial Officer or City Treasurer … at any time and for any reason.”

While Columbia’s 2007-08 fiscal year ended nearly a year ago, city officials are still waiting on an audit to see how they did.

Wednesday, Bud Addison, the city’s external auditor, told council members the audit was “98 percent complete” and should be ready by mid-July.

Then the real test begins.

Columbia’s accounting department has been in shambles for years. For the past year and a half, Columbia officials have had help from the Municipal Association of South Carolina with reconciling their bank accounts. But those accountants are pulling out of the Capital City on Tuesday. The 2009-10 audit will be a first test of the city’s restructured accounting department.

1. Ordinance No. 2009-030.

• This approves the 2009-10 budget. It is a formality. Council members have to approve the budget twice for it to go into effect. They approved it once last week. Because of that, council members cannot amend the budget. If they do, they have to have a second public hearing and vote another two times on the budget. They don’t have time to do any of that.

2. Ordinance No. 2009-046

• This ordinance eliminates the city’s front-end loader service. This means the city will stop picking up garbage from those big Dumpster-like containers. It also means apartment complexes and businesses will have to hire private companies to haul their trash away. Apartment owners say it will force them to raise rents. However, the city will continue to provide the service to condo owners

3. Ordinance No. 2009-055

• This makes 121 Shop Road part of the city. It’s 133 acres that will be subdivided and sold off for “light industrial” development. City officials expect it will bring in about $13,000 in property taxes every year. The property is in the city’s secondary ring,  another example of its new annexation policy.

4. Ordinance No. 2009-059

• This authorizes SCE&G to buy the bus barn property from the city for $4 million. I wrote about it in today’s paper.

5. Ordinance No. 2009-061(A)

• This allows Jay Dahlgren to sell shaved ice by Finlay Park.

6. Ordinance No. 2009-062

• This authorizes city officials to borrow $975,000 to purchase 11 acres on Beltline Boulevard. The land will be the site of the city’s water and sewer maintenance department. Interim City Manager Steve Gantt says tax rolls have the land valued at $2.6 million, but the city is getting the discount price because the land is in bad shape and has been vacant for many years. It was once home to Newsome Chevrolet. City taxpayers will pay back the loan over three years, interest free.

7. Columbia Canal Front Terrace Building Project

• This is a $2.3 million contract to Buchannan  Construction to build a pavilion connected to the EdVenture Children’s Museum. Called “The Terrace Building,” the pavilion is the first phase of the $10 million Canal Front project. The pavilion will include a meeting room, warming kitchen, a police substation and public restrooms. It will also serve as a catering facility and meeting area for EdVenture and its roof will be a terrace that will serve as sort of a large porch for the museum. The State’s Jeff Wilkinson will have a story about this tomorrow at thestate.com

8. Equipment for the Charles R. Drew Wellness Center

• Not sure what this is about. Council members E.W. Cromartie and Tameika Isaac Devine are scheduled to discuss it.

9. City Manager Search Process

• Council members will discuss the timeline for the city manager search.

10. Letter of agreement for auditing services

• This clarifies the relationship between the city and Webster Rogers LLP, the city’s external auditor.

11. Community Development Block Grant Empowerment Zone Funding

• The city’s community development office and the city’s finance office disagree on how much grant money the city has available. Bud Addison, who works for Webster Rogers, will attempt to explain the situation to council members.

Now Finlay is planning another forum Wednesday night at 6 p.m. at Doc’s BBQ, which Finlay owns. (For the news release, click here).

Finlay has invited the city’s auditor, Bud Addison, to answer questions about the city’s finances. The last time Finlay did this, council members argued for close to an hour over whether they would allow Addison to attend Finlay’s forum. Eventually, council members decided Addison could attend, but only if the city held similar budget forums in Columbia’s other three council districts. They even sent out a news release about it.

Those other forums never happened.

For three years, Columbia City Council members have crafted budgets without knowing how much money they had earned and spent in previous years. They don’t want to do that again, but they might have to if the 2007-08 audit isn’t finished in time.

That task falls to Bud Addison, audit senior manager for Webster Rogers. Yesterday, Addison told council members he couldn’t complete the audit because city staff haven’t given him everything he needs to do it, to which Councilman Daniel Rickenmann had this to say:

“We have to have this done. We need to put a stop to it now. I’m trying to sit here and lower my blood pressure.”