Mt. Vernon Register-News

September 19, 2013

City receives 'Clean' audit

By TESA GLASS tesa.glass@register-news.com
The Register-News

---- — MT. VERNON — Auditors from Krehbiel & Associates gave the city a glowing audit.

"The audit is 143 pages, and there were no findings, no issues we have to report," said auditor Greg Charlton. "It's a very clean audit."

Highlights presented to the council by Charlton during a presentation on Monday included information on the Public Utilities funds, Sanitation Fund, Downtown TIF, Health Insurance Fund, bonding and police and fire pension funds. The audit was for fiscal year 2012-2013.

In the Public Utilities Fund, Charlton said there was a "pretty good increase" on the income side, coming in at $266,528. Net capital assets before depreciation was $1.3 million.

The Sanitation Fund showed a net income of $25,000.

The Downtown Tax Increment Finance Fund showed $180,403 in improvements to the downtown area during the fiscal year.

"The TIF fund is creating a lot of improvement to the downtown area, and I believe we will continue to see that throughout the life of the fund," Charlton said. "The other TIF funds are in the beginning of their life, and I think they will also be successful once they get underway."

Charlton commended the council and city on its decision to create a self-insurance fund for employee health insurance.

"The fund was created to save money for the city and its employees," Charlton said. "It has worked very well in accomplishing that goal, and I believe the council should be commended for creating that fund."

According to the audit report, the health insurance fund showed a decrease in net assets of $41,810 during the fiscal year, as medical claims were more than expected. Funds accumulated by the fund in past years offset the future healthcare costs.

Pension information was highlighted during the report.

"This was a good year for investments in the funds," Charlton said. "When those funds go down, that increases the levy required, and when they go up, it should decrease the amount of the levy. ... Pensions are something that is affecting all municipalities, including us, but it's something that will need to be fixed at the state level, there's not much that can be done here."

During the fiscal year audited, the Police Pension Fund investments experienced an increase in market value of $716,034 and during the year which ended April 30, 2012, the fund investments had an increase in market value of 18,043. The Firefighter Pension Fund investments for the year ending April 30, 2013, had an increase in market value of $957,592; during the fiscal year ending April 30, 2012, the fund investments had a decrease of 328,317.

Overall, the net revenue for the city was $4.6 million, with expenses of $2.6 million. Capital assets were at a total of $14.2 million.

The audit will be discussed by the council in more detail during a workshop session, prior to officially accepting the audit report.