|AUDIT SHOWS HEALTHY FINANCES|
CITY AUDIT LOOKING GOOD 1-20-11 LMS
The cityís General Fund ended fiscal year 2010 with a very positive balance according to a draft audit report presented January 19th to the Salmon City Council.
Certified Public Accountant Bob Baker reported excess revenues over expenditures were around $165,000 and that a General Fund loan of $74,000 was made to the Streets and Alleys Department.
Baker said, ďSo, in a nutshell the General Fund is healthy. Itís setting as well as itís been in a number of years with a fund balance of around $520,000.Ē
He said the Streets and Alleys ledger is on the other side of the spectrum showing a deficit of about $57,000 on its fund balance. The department borrowed money from the cityís General Fund and used it primarily for the street sweeper purchase. Baker said, ďAs the loan is paid back in the next two years, from these additional revenues allocated to the Streets and Alleys, the fund balance will be back in the positive. So, itís more of a timing difference than it really is a black eye. Itís just the way the numbers fell in terms of timing there.Ē
The audit shows the Sacajawea Interpretive, Cultural and Educational Center had a positive fund balance of around $95,000 at the end of September. Baker said, ďIt had excess revenues over expenditures of $11,000. So, steadily itís been increasing and finding itself in the black.Ē
Even though the cityís Water Fund shows a bottom line net loss of $167,000 Baker explained when depreciation for the water plant and its assets is figured in, the fund actually had a positive cash flow of around $115,000. He said, ďAs far as operational flow the Water Fund is doing fine.Ē He said the last of the capital leases have been paid, ending lease obligations. That leaves the DEQ loan and the FHA bonds as the only debts. There are 28 years of payments left on the loan from DEQ and Baker said the FHA bonds on the books are current on payments and interest.
The Sewer Fund showed a net profit of around $280,000 after approximately $90,000 in depreciation of write-offs on the improvements and capital assets. The fund showed a positive cash flow of around $150,000. Baker said, ďIt was a big year for improvements out there. There were a lot of expenditures and there are some payables that fell into this last fiscal year but with all the activity thatís gone on, this particular fund had more capital improvements but still has no debt at this point in time. And, thatís something you folks are looking at now in terms of some potential long-term financing there.Ē
The Water and Sewer Fund is in healthy shape however long term debt is a focus as far as what might be the best options for the city sewer system.
Baker said City Finance Director Amy Fealko is working on the Management Discussion Analysis which is the last component of the audit report. He said he will attend the councilís February 2nd meeting to answer any questions council members may have on the final audit report.
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