At the April City Council meeting the 2013 audit was
presented by our auditor Schlenner Wenner.
Highlights of the audit were presented which included revenues and
expenditures of the general fund, sewer fund and special revenue funds. Overall the city is in good financial shape.
On the revenue side the city ended the year $51,648 ahead of
budget. A portion of these funds,
$27,181, were owed the city in 2012 but came in after the first of the
year. The remainder of the funds
included collections of revenues ahead of budgeted amounts.
On the expenditure side of the budget it showed a negative
variance to budget of $76,807. This is
somewhat misleading as a transfer, that wasn’t budgeted for, was included in
the total amount of expenditures. Part
of the transfer, $232,301, is revenues that were moved from the General Fund to
the Revolving Capital Fund. This
transfer activity is done annually to balance the general fund reserves at a
threshold of 45% of the general fund budget for the current year. These funds are preserved in the Revolving
Capital Fund. Removing that transfer
from the expenditures results in a positive variance to budget of
$103,846.
The Revolving Capital Fund, with the transfer discussed
above and other resources improved its balance from $633,691 to $957,742. These funds are set aside for future use in
purchasing equipment or making improvements rather than incurring debt
service. The funds are segregated and
earmarked for specific purposes.
Debt service shows changes made with a total of $1,600,000
paid in 2013. Outstanding debt at year
end shows $4,565,000. This amount is
accurate but needs some explanation.
Part of this debt includes debt for a crossover refunding where funds
have been escrowed to pay a portion of it.
In 2014 there is a total of $2,415,000 to be paid of the outstanding debt
amount. In January of 2014 two bonds
were paid off for a total of $1,030,000.
The refunding bond escrow will pay $1,285,000 leaving a balance of
$100,000 for the city to pay in 2014.
This reduces the overall outstanding debt to $2,150,000 at year end 2014.
The sewer fund shows total assets of $3,461,032. Of this amount $3,210,343 is reserved for
capital expenditures. The sewer fund,
with all funding sources considered, ended with a positive variance of
$215,749.
The auditor was pleased with the position of the city. Fund reserves in the general fund are about
51% of the budget. The city is well
positioned to address costs with the revolving capital fund. Debt service is being drawn down and the bond
rating of the city has increased two steps.
As stated at the start, the city is in good financial shape.
