City receives 2018 audit report
Published 8:18 am Friday, May 31, 2019
Kim Hillberg from CliftonLarsonAllen, LLP discussed the results of the city’s 2018 audit report with the Austin City Council during the council’s work session on May 20.
According to the report, revenues/transfers in 2018 were 102.9 percent of the budgeted amount. The overage was due to $365,000 in additional revenue the city received in an interest payment from Murphy’s Creek Townhomes that was not due until 2028.
The city’s total expenditures were 92.24 percent of the budget. The city would have been at 94.45 percent of the budget; however, the Minnesota Legislature passed legislation that eliminated the city’s requirement to pay nearly $370,000 from Fire State Aid to the Fire Relief Association.
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As a result of these, the city ended up with an Unassigned Fund Balance of 53.8 percent, an increase of 11 percent from 2017.
Other highlights of the report include:
• The assets and deferred outflows of the city’s resources exceeded it’s liabilities and deferred inflows of resources at the close of 2018 by $250,024,894 (net position). Of this amount, $30,215,522 (unrestricted net position) may be used to meet the city’s obligations to citizens and creditors in accordance with the city’s fund designation and fiscal policies.
• The city’s total net position increased by $9,058,926 in 2018.
• At the end of 2018, the city’s governmental funds reported a combined ending fund balance of $22,628,158, an increase of $3,274,189 from 2017. Approximately 68 percent of that amount is available for spending at the city’s discretion.
• The city’s total net bonded debt decreased by $2,120,000, or 8.8 percent, during the 2018 period. No new debt was issued during 2018.
The report broke down the revenue sources for the 2018 budget as follows:
• Grants and contributions not restricted to certain programs – 34 percent
• Property taxes – 27 percent
• Capital grants and contributions – 15 percent
• Charges for services – 11 percent
• Other taxes – 8 percent
• Operating grants and contributions – 5 percent
It was noted that the Government Finance Officers Association of the United States and Canada awarded the city a Certificate of Achievement for Excellence in Financial Reporting for its comprehensive annual financial report for 2017. This is the 33rd consecutive year the city has received the award. Hillberg and Mayor Tom Stiehm praised Administrative Services Director Tom Dankert and the city’s financial department for the work they put into the annual budget and financial report.