Milton City Commissioners heard reports Thursday that the city's funds had stabilized and profited over the last year.

Auditor Jeff Woods of Raisor, Zapp and Woods presented the annual audit and told commissioners the city's General Fund stabilized after moving expenses around to different line items when compared to previous years. Woods also told commissioners that while the city's property tax income was slightly down last year, the insurance tax had increased.

"That is a good sign of the times," Woods said of the increase.

The water and sewer company showed a $40,000 profit after rate increases took effect about 18 months ago.

"This is the first full year with your rate increase," Woods told commissioners.

The profit will help to pay for the city's meter replacement project, as well as the city's loan at the Farmers Bank of Milton.

Overall, the city of Milton had several positives in the past year's audit, Woods said.

"You're going in the right direction," he said. "You all have come so far in the last three or four years we've been auditing."

Woods said the current economic conditions hit Milton early on, but the city's funds seem to be improving. Not all cities have seen such a turnaround, he said.

 "There are a lot of cities struggling right now," Woods said, "And you are not."

Also during the meeting, commissioners discussed new employee policies for vacation, personal and sick days.

The commission discussed allowing employees after one year of service to have 5 days of vacation. Employees with two to seven years of service would earn 10 days, and employees with eight to 14 years of service earning 15 days of vacation. Employees with 15 or more years of service would earn 20 vacation days. Commissioners talked about the option of requiring those vacation days to be used in the calendar year.

Personal days would be limited to four days a year without the days accumulating over the years. Employees would also earn four hours of sick leave each month of employment as well.

The changes would take effect on Jan. 1, 2014, if commissioners approve the changes.

Commissioners plan to discuss the changes again at the next meeting.

In other business:

• Commissioners held a moment of silence for former City Commissioner Gerald Owens who passed away recently.

• Commissioners looked at various options for new gateway signs. Several options from area companies were available during the meeting.

"I just want something to look nice when visitors come through town," Mayor Denny Jackson said.

Commissioners agreed to meet with some of the sign companies during the next meeting.

• Commissioner Cecil Robak asked the commission to consider an animal ordinance because of dogs roaming around the city. Jackson said the city falls under the county's ordinance for animal control and leash laws, and any animal issues should be reported to the county animal control officer.

Other commissioners suggested providing residents with a flyer that outlines the county's ordinances pertaining to animals and asked that residents not allow animals to roam away from their property.