The City of Martin heard good news Monday night after a recent audit showed the city in good financial shape from the previous fiscal year.
According to an audit report conducted by Reese Financial, the city’s net worth were more than its liabilities.
“On the audit report, we issued an unqualified opinion, which is a good report. It means that we didn’t find anything that would be against generally-accepted auditing procedures or practices,” Jack Reese of Reese Financial told the Martin Mayor and Board of Aldermen Monday evening.
Reese told the board the met assets exceeded all of the city’s liabilities “significantly” and the city appears to be in good financial shape.
“Of the findings and recommendations that we had, we only had one finding this year. All prior findings have been corrected with the exception of this same one and that’s the Solid Waste Fund that has a negative fund balance. This time, it didn’t run in the red. You all made some corrections there and it had a positive profit, you could say this year,” Reese added.
The City of Martin adjusted rates in December of 2010 and as a result, the Solid Waste Fund appears to be climbing its way out of a deficit.
Martin City Recorder Chris Mathis said, historically, the Solid Waste Fund has taken in more than what was spent and it had not had sufficient revenue to cover expenditures.
With the adjustment of rates in 2010, along with the closure of the city’s landfill, the Solid Waste Fund is expected to turn around.
Other financial reports listed in the fiscal year 2010-11 audit included:
• State and county sales tax revenues increased by $98,000.
• State and federal grants decreased by a little more than $29,000.
• Administrative revenues decreased by nearly $37,000.
• Property tax revenues increased by a little more than $11,000.
• Intergovernmental (state-shared revenues such as state sales taxes) decreased by $1.6 million.
While a number of budget line items showed increases or decreases, the City of Martin actually spent nearly $34,000 less than what was budgeted for the fiscal year.
Budget line items which showed variances in the audit included:
• City court fine were approximately $57,000 compared to a budgeted $69,000.
• State income taxes (Hall Income Tax) were approximately $31,000 compared to a budgeted $50,000.
• Interest income (CD’s, checking accounts, etc.) was approximately $47,000 compared to a budgeted $21,000.
• Downtown Enhancement grant revenues were approximately $553,000 compared to a budgeted $701,000.
The city’s natural gas fund ended with revenues exceeding expenses by nearly $165,000.