The city of Coon Rapids has received a clean bill of financial health from its external auditor.
Representatives from the certified public accounting firm of HLB Tautges Redpath Ltd., the city’s external auditors, presented the 2011 comprehensive annual financial report to the Coon Rapids City Council at a work session prior to the June 5 meeting.
At it regular meeting, the council formally accepted the 2011 financial report.
According to Sharon Legg, city finance director, and Kevin Vouk, manager of accounting/treasurer, the external auditor issued an unqualified “clean” opinion of the city’s financial statement for the year ended 2011.
During the year, the city brought in more revenue than budgeted and spent less than budgeted.
The report shows that 2011 city general fund revenues totaled $26,047,126 compared with a budget of $25,009,876, while expenditures amounting to $23,880,554 were under the budget of $24,588.520.
Put together, the 2011 financial report was in the black by $1,745,216 and the general fund balance grew from $12,133,563 to $12,595,697.
According to the financial report, the general fund balance is at its highest level with figures going back to 2004 when the balance was $10,157,389.
Auditors recommend the general fund balance be kept at around 45 percent of the following year’s balance for cash flow purposes because the bulk of the city’s revenue – property taxes – is not received until June and December.
The current working capital reserve is 45.8 percent.
The largest source of revenue increase came in charges for services at $394,880, while licenses and permits brought in $196,649 more than expected and investment income grew $167,323 more than anticipated.
On the expenditure side, personal services (staff salaries and benefits) were $349,819 less than anticipated and $135,505 was left unspent in the contingency fund.
Costs for supplies, fuel and parts chargebacks and capital outlay were also under budget.
The financial report also looks at the city’s four enterprise funds – water, sewer, storm drain and golf.
• The water fund had an operating loss of $68,130 in 2011; however, revenue increased by $215,114 and expenses dropped by $182,192.
• The sewer fund showed an operating income of $217,032 in 2011 with an increase of $224,083 in revenues and a drop in expenditures of $22,478.
• The storm water drainage fund had an operating income of $128,520 last year. Revenues were up $14,031 and expenses decreased by $76,668.
• Both golf course revenues ($339,825) and expenditures ($316,895) increased in 2011 with the fund showing operating income of $48,197 for the year.
According to Legg and Vouk, some of the financial highlights from the report are:
• The city’s assets topped its liabilities by $285.3 million by the end of 2011, with $65.9 million available to meet the city’s ongoing costs to citizens and creditors.
• The city’s total net assets increased by $2.2 million.
• The city’s total debt dropped by $3.3 million in 2011 resulting from a prepayment of a bond issue of $1.37 million and schedule principal bond payments of $1,895 million.
Peter Bodley is at [email protected]