Kempner City Council last week voted to commit $250,000 for future capital and infrastructure expenditures. The action came as a result of a recommendation by Preston Singleton of Singleton, Clark and Co., the city’s auditor.

Singleton reviewed the 2011-12 fiscal-year audits and said at the end of the fiscal year the city has approximately $366,000 in its fund balance – an increase of $14,000 from the previous year.

“The city brought in more money than it spent,” the auditor said. “From all sources, the city brought in about $252,000, and total expenditures were about $174,000,”

Most governmental entities like to maintain at least enough funds to operate for three to four months. Singleton said Kempner has enough excess funds to operate from 18-24 months.

Because of the excess funds available, the council earmarked the $250,000 for possible projects such as a wastewater treatment facility or other improvements to the city’s infrastructure.

“We have some extra money,” Isenhour said. “And I think one day we are going to need a wastewater system, and that is going to take bunches of money. However, it could be years before a system is needed or until Kempner can afford such an operation.”

Mayor Pro Tem Paul Cook said when the south bypass around Copperas Cove is completed, it will bring changes to Kempner, and other city projects may be needed.

Isenhour said the council is responsible for planning for the future, and setting aside the excess funds shows the city is thinking of the future. The money could be used for other projects such as water lines or road construction.

The funds, with council approval, could be moved back into the general fund if necessary, he said.

Concerning the audit report, Singleton said the city is in good financial condition and has good financial controls in place. The council then voted to accept the audit.

Inotherbusiness,thecouncilconvened in closed session to discuss legal issues regarding Kempner’s lawsuit against Gene Doss Construction Co., and United Fire and Casualty Co.

After about 10 minutes, council members reconvened in regular session and voted to accept a settlement. They authorized the mayor to execute any documents to close the lawsuit.

The final settlement was about $15,000 and will be spent for building repairs. Gene Doss Construction was the general contractor for the City Hall building, which was constructed in 2011.

Several problems surfaced after its completion, and the contractor refused to cover some of the needed repairs under its warranty.

Kempner City Council will meet again in regular session July 23 at 7 p.m. in City Hall Council Chambers.