City auditors made a presentation regarding the city’s comprehensive annual financial report for the fiscal year ending Sept. 30, 2016 at the City Council agenda meeting on Tuesday, April 11. 

The General Fund revenues of $70 million were an increase of $3.9 million over prior year collections of $66 million. Included in the increase is $2.3 million in new revenue from an additional quarter-cent sales tax levy that became effective January 1, 2016.  Existing sales tax revenues increased by two percent. Total sales tax revenues of $45 million accounts for 64 percent of all General Fund revenues. Property tax revenues increased by $952,000 or 11 percent to $9 million.

Actual General Fund operating expenditures and transfers of $64.4 million were an increase over prior year expenditures of $61 million. Salaries of $24.9 million accounts for nearly 42 percent of total expenditures and were up $1.8 million.

As a result of the October 2015 election, the City implemented a new pay plan effective January 1, 2016.  All Fire Department personnel received a ten percent across the board increase and all other employees received an eight percent across the board pay increase.  This is in addition to the two percent longevity pay for eligible employees. Entry level pay for all firemen was increased by ten percent and police officers’ pay was increased by eight percent. Starting pay for non-public safety positions was also increased by 8 percent. This follows a two percent across the board increase give to all employees on January 1, 2015. 

In addition to authorized operating transfers to other funds, $7 million was transferred from the General Fund for wastewater capital projects during fiscal year 2016.  The General Fund had an ending fund balance of $30 million on September 30, 2016, which represents 46 percent of 2016 expenditures and operational transfers.

The 2016 budget was amended across all governmental funds to provide for a transfer of $15 million to the Capital Project Fund to provide funding for the $42 million Wastewater Treatment Plant. 

Capital project expenditures were $33 million in fiscal year 2016, compared to $14 million in the prior year. This increase is primarily due to the construction of the new wastewater treatment plant.  Other projects included streets and drainage, sidewalks, lift station and sewer line repairs, water system improvements, and various recreation facility projects.  

The audit was prepared by the firm of McElroy, Quirk and Burch. They issued the City an unmodified opinion on its financial statements for the fiscal year ending September 30, 2016. The report did note two immaterial findings of misappropriation of property, which combined totaled less than four hundred dollars. Both items were discovered by the City and reported to the auditors prior to the audit.