STATE OF ALABAMA

COUNTY OF ETOWAH

CITY OF RAINBOW CITY-COUNCIL MEETING-MAY 18, 2005

The City Council of the City of Rainbow City, Alabama, met in a special called meeting today at 8:00 A.M., and upon roll call the following members were present:

Terry John Calhoun, Mayor

Jeff Overstreet

Bobby McCartney, absent

Lloyd Matthews

Bryan Stone

Kris Cornutt

The same constituting a quorum of the City Council, the following business was transacted.

1. The meeting was called to order by Mayor Terry John Calhoun.

2. Mayor Calhoun stated that the purpose of this meeting is for the auditor to give us an audit report. Therefore, he turned the meeting over to the auditor, Michele D. Wiles.

3. Ms. Wiles stated that the City has implemented a new financial reporting model, as required by the provisions of GASB Statement 34, Basic Financial Statements and Management’s Discussion and Analysis-for State and Local Governments, as of September 30, 2004. The total revenues for the year ended September 30, 2004 were $7,495,135.00 and the total expenditures were $8,018,595.00, leaving a deficiency of revenues over expenditures of $523,460.00. She also discussed that the City entered into an agreement with the Alabama Department of Transportation for the extension of Black Creek Parkway from I-759 to Steele Station Road. The City is obligated to pay $l,l3l,164.00. Also in 1999, the City entered into an agreement with the Alabama Department of Transportation for the widening of Steele Station Road. The balance due on this project is $686,900.00.

4. Mayor Calhoun thanked Ms. Wiles for the good job she did on the audit.

There being no further business to come before the Council at this time, Kris Cornutt made a motion to adjourn.

Time Adjourned: 9:55 A. M.

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Barbara T. Wester, City Clerk\Treasurer

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Terry John Calhoun, Mayor