The fiscal health of the City of Breezy Point has been a concern for the city council. All aspects of accounting have been scrutinized to address concerns. A good number of factors have played into these concerns.
We have seen issues with detachment. This has resulted in the loss of property and tax payers. We have seen a tax appeal that not only reduced taxable value of the community but also reduced the amount of taxes to be collected. This was further compounded with the reduction in taxes being retroactive for the year past. General taxable value of the community is in decline with the real-estate market reductions. Tax appeals and value reductions continue to plague the city.
With these factors of concern the city did what it could to reduce spending. We also did what we could to improve revenues. In the end between spending cuts and improved revenues the city was able to increase the unrestricted fund balance by a good margin.
The city also has adopted a policy concurring with Governmental Accounting Standards Board rule number 54. The policy the city adopted, among other things, provided for the maximum unrestricted fund balance as a percentage of the current operating budget. Comparing the fund balance against this policy has allowed the city to move some funds from the unrestricted fund balance to a reserve account for future improvements.
Upon finalizing the audit the city determined that funds could be transferred as discussed. Funds have been transferred and approved by the city at their June meeting. These funds improve the fiscal health of the city while also maintaining an adequate unrestricted fund balance to meet cash flow requirements. The transfer amount of $200,065 remains in the general fund but becomes assigned for future use and remains an asset of the city.
