The city of Poplar Bluff has about 13 percent left from a $6 million bank account that was once expected to help pay for a new city hall and police department.
The account was created with money from the sale of the city's cable division.
The balance was discussed Friday, when a 2016 audit report was accepted by the city council.
The audit also highlighted ongoing shortages in the health insurance fund which pays for employee premiums and claims. The city's health insurance debt grew by 70 percent in 2016, to almost $3.4 million.
While the city is considered a low risk auditee, the financial statements reveal items the council should be aware of, and likely already is, said accountant Steve Austin, a partner with accounting firm Kraft, Miles and Tatum.
"Obviously, throughout the year, budgets change, but really monitoring the expenses that are flowing out is probably one of the more critical rolls as far as council members to look at," Austin said near the end of his report.
The city started out with approximately $6 million in a bank account established for the cable sale money, Austin said.
It had approximately $800,000 as of Dec. 31.
A transfer of $3 million in 2016 to Municipal Utilities accounts for part of the drop, Austin said.
"The rest of the funds were used for operating expenses," he said.
The cable company was sold in 2014 for $17.5 million. Approximately $9 million was used to retire outstanding bonds.
It was unclear at press time why the account established for the cable sale money held $6 million, rather than $8.5 million.
City manager Mark Massingham, who was not city manager at the time of the sale, was unavailable Saturday afternoon to answer additional questions about the audit presentation.
City management leadership has undergone several changes since the cable sale, including the hiring and firing of former city manager Heath Kaplan. Under Kaplan, the city saw a number of increases in spending, including on technology projects and for professional services.
Mayor pro tem Susan McVey said she would like to see an accounting of the fund from the time it was created through its current balance.
"I'm sad to see how much the funds have already dropped," she said. "We have to work from here to fix it."
Losses in the health insurance fund grew by approximately $1.4 million in 2016, Austin also told council members.
Ward 4 council representative Philip Crocker asked during the meeting if there is a major concern with the health insurance fund.
"There is a concern with the health insurance fund. This is not something that's just sprung up. This has been an issue for years. Ultimately, it's something that management should, and probably is, addressing," Austin said.
The deficit was just under $2 million in 2015.
"Ultimately, the issue is, there is more money coming out than is going into the plan," Austin said. "Obviously, that's something management should take into consideration and make some changes."
Both Ward 5 council representative Robert Smith and council member at large Ron Black say they are concerned about the health insurance fund. This is a matter they say needs to be looked at closely before the 2018 budget is completed.
These are problems faced by all businesses, said McVey. The spending in the fund is driven by the amount health insurance claims made by the people served by the fund, she said.