Milford approves corrective action plan after auditor flags high general-fund balance

Milford city staff presented a corrective action plan Jan. 20 after a state auditor inquiry found the city’s general-fund balance exceeded the recommended threshold. Staff said the plan explains why the balance exists and how the funds will be used or earmarked.

Unidentified Speaker 2 told the council the packet includes a detailed letter and a corrective action plan that inventories candidate capital uses: replacement of the swimming-pool roof, drainage on 600 North, new bay doors at the maintenance shed, purchase of a backhoe and Industrial Park Road Phase 2 and 3. Those items were tallied at $595,500 in the packet. Staff proposed either expending on these projects or creating a capital improvement fund to earmark money for larger purchases and partnerships with other entities.

Unidentified Speaker 3 supported creating a capital fund to make the balance part of an actionable plan that can accept donations or partner funding. Council moved to approve the corrective action plan and instructed staff to submit it to the state auditor’s office.

Next steps: staff will file the approved corrective action plan with the state auditor and continue monitoring the general-fund balance to remain within the 35% guideline the city cited.