Friday, February 25, 2000
Ludlow city finances get sorted out
BY CINDY SCHROEDER
The Cincinnati Enquirer
LUDLOW — Temporary office workers in City Hall have deposited $46,000 in uncashed checks they found stacked on desks.
They also are cleaning out files dating nearly 60 years in an effort to organize records in the Kenton County city of 4,700, where unpaid bills are mounting.
“We're reorganizing the office from scratch,” said Robin Garrison, an Account Temps bookkeeper, who has 15 years of accounting experience. She blamed many of the problems she encountered on “disorganization and a lack of accounting knowledge.”
The temporary workers arrived Valentine's Day to help with bookkeeping, after Ludlow's clerk/treasurer and deputy clerk resigned.
During their first three days on the job, the temporary workers found $51,000 in uncashed checks — including property tax payments, checks from insurance companies, water deposits and payment for police citations — piled on desks in city offices. Ms. Garrison said workers immediately deposited $46,000, and are attempting to reconcile the remaining $5,000, before depositing those checks.
Since the temporary workers arrived, Mayor Tom Stacy says the city has made partial payments on two of its largest vendor bills.
“There are a sizeable amount of vendors we owe money to,” Mr. Stacy said. Neither he nor the temporary help could say exactly how much the city owes.
“Because of the bookkeeping that was done in here, I'm reconciling the bank accounts,” Ms. Garrison said.
This week, Mr. Stacy said he sent a $50,000 payment to the Northern Kentucky Water Service District, which is owed $72,000 by Ludlow. The city also recently paid about $19,000 to Bavarian, which provides garbage pickup for the city, Ms. Garrison said. Neither she nor the mayor could give the total Ludlow owes Bavarian.
Mr. Stacy said he thought the city has money to pay its bills. “But I want to make sure we have our (financial) records in order before we pay everything,” he said. “I want to make sure everything clears, and I don't want to drain any accounts.”
Steve Martin, an attorney for the Ludlow Volunteer Fire Department, said he has been instructed to send a letter to the city seeking collection of more than $100,000 owed.
The fire department is independent, but has a contract with the city to provide fire and life squad services.
Mr. Martin said fire department records show it has not received a full payment since April.
“The fire department wants to get it resolved,” Mr. Martin said. “They don't want to hurt the city, but they're out of money.”
Ron Barrow, acting general manager of the Northern Kentucky Water Service District, said the utility has sent two late payment notices to Ludlow, seeking money owed from the past six months.
Ludlow, which has its own water department, buys its water from the Northern Kentucky Water Service District.
Part of Ludlow's financial problems stem from the fact the city is a year behind in billing water customers.
Ms. Garrison said she hopes to get water bills sent out within a month.
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