28 December, 2012 (All day)
Auditors gave Morgan City a clean bill of financial health during the fiscal year 2012 financial report.
Tax revenues increased $30,000 and sales tax increased $50,000 compared to the prior year.
“That means people are spending money in town,” said Jeff Ambrose of Crane, Christensen & Ambrose, Ogden-based certified public accountants.
The city’s net worth is on the increase. Total city-wide net assets increased $75,000, bringing the total in net assets to $12 million.
Land improvements increased $102,000, thanks mostly to the new splash pad and other park improvements. The city’s machinery and equipment worth increased $137,000, which can be attributed to a new truck purchase. Road work and sidewalk and gutter improvements account for a $214,000 increase in infrastructure worth.
“Revenue is higher than you budgeted, and expenditures are less than what you budgeted,” Ambrose said. “That shows that the people in charge of monitoring your budget did a pretty good job.”
Ambrose did identify four items of concern.
A result of more revenues and less spending than anticipated, there was an increase in the fund balance. The city’s unassigned fund balance of $281,000 exceeds the statutory limit of 18 percent of the budget by some $40,000, Ambrose said. Although technically a violation of state code, it is a good violation, he said. The city plans to move some of the increase into the capital projects fund.
Ambrose said the city’s special improvement district fund is “underwater,” although he is satisfied the city is taking steps to alleviate the problem.
In addition, three city departments had expenditures that exceeded budgets, and a budgeted revenue on a tax rate form did not correspond to the city’s budget.