The Killeen City Council will consider giving City Manager Ron Olson more annual vacation time and deferred compensation at its workshop session Tuesday.
The council will vote on two addenda to Olson’s contract that will extend his vacation time from four to six weeks and provide an additional $4,000 in deferred compensation each year. Olson’s annual performance review was conducted in closed session Tuesday.
Olson, 68, was hired on with the city in February 2017 with 38 years of city management experience. Olson previously served as city manager of Corpus Christi. He also held executive posts in Middletown, Ohio; Belding, Mich.; West Jordan, Utah; and served as deputy city manager of Arlington.
Under his current contract, Olson makes $225,000 in annual base salary with $18,000 in deferred compensation retirement benefits.
Upon his hiring, Olson was also given a $7,200 car allowance and a $10,000 housing and relocation allowance.
The new benefits would bring Olson’s annual payout to roughly $247,000.
Also on Tuesday, the council will consider accepting an annual audit report from Houston-based Belt Harris Pechacek accounting firm.
Belt Harris Pechacek, hired by the city Aug. 8, was paid $127,450 for the fiscal year 2017 audit with another guaranteed year on its contract.
Robert Harris, a partner with the firm, applauded the city administration’s cooperation and financial preparation and said the results showed strong controls.
“For a city this size, this is probably the lowest amount of alterations we’ve had to make to any audit all year.”
Although the city has received a slate of “clean” external audits for years, the federally mandated annual reviews are limited in scope and insight.
Because an annual audit is not forensic in nature and only examines the city’s financial framework in a given fiscal year, routine audits presented the city’s finances as stable and did not address signs of distress in recent years.
By federal law, cities’ comprehensive annual financial reports produced each fiscal year must be audited by an outside accounting firm for compliance with Governmental Accounting Standards Board requirements. The central aspect of the review is “material weakness,” or a given municipality’s lack of adherence to internal and GASB standards.
However, the national accounting standards do not consider long-term planning, strength of financial policies and controls, and other concerns raised during the city’s special management audit completed in August.
According to the special audit, conducted by Houston-based McConnell & Jones, the city maintained a weak financial policy framework and utilized short-term decision making in capital improvements and bond issuances. Other areas of concern included weak oversight of “city owner” development agreements, improper transfers of bond proceeds and more.
The council’s meeting will begin at 5 p.m. Tuesday at the council chambers at City Hall, 101 N. College St.