Marion gives employees 5% raises
Staff writer
Marion City Council members, hurrying Monday to complete a meeting before a storm was predicted to hit, appointed new city officials, approved 5% raises for all employees and declined to set a spending limit for department heads until the council’s May 20 meeting.
Members also heard an audit report from Christina Henson of the Loyd Group accounting firm.
Henson said no laws were violated in the city’s stewardship, compliance, and accountability.
The audit report states that although banks are required to pledge securities for deposits in excess of FDIC coverage, the city has no policy that would further limit investment risks.
“At Dec. 31, 2023, the city’s carrying amount of deposits was $2,259,945 and the bank balance was $2,534,721,” the report reads. “The bank balance was held by two banks resulting in a concentration of credit risk. Of the bank balance, $250,947 was covered by federal depository insurance and the remaining $2,283,774 was collateralized with securities held by the pledging financial institutions’ agents in the city’s name.
“For an investment, this is the risk that, in the event of the failure of the issuer or counterparty, the city will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. State statutes require investments to be adequately secured.”
Council members set future work sessions for May 13, July 22, Sept. 23, and Nov. 25.
A budget meeting is planned for June, and a budget hearing will be June 24.