City gets good audit report

This article submitted by Linda Stelling on 5/2/01.

The city of Paynesville's financial condition improved over the year, according to Loren Viere of Kern, DeWenter, Viere, Ltd, tcity auditor. Viere presented the city's audit to the Paynesville City Council at its Wednesday night meeting.

The city ended the year with a fund balance of $1.6 million. This compares to $1.5 million for the previous year. The city's revenues exceed expenditures by $111,396. The city's general fund revenues increased 12.59 percent while the expenditures increased only 5.46 percent, going from $854,573 to $901,234.

"The revenue figures are misleading as by luck we ended the year at a good time when investments and interest rates were up," said Mayor Jeff Thompson. "Everything looks good on paper," he added.

According to Viere, the city has done a good job of budgeting their money. They have $1,516,930 in the general fund, which equals about 21 months worth of expenditures.

Thompson felt the city was sitting pretty good financially as it is recommended that cities the size of Paynesville have nine months or more of funds available to cover expenditures.

Sources of the city's revenues are: state and federal aid, $494,933; charges for services, $109,966; licenses and permits, $104,673; property taxes, $470,338; miscellaneous, $171,883; and fines, $12,597.

Viere added all the capital project funds have healthy fund balances ranging from $48,000 to $496,000. Capital projects include streets, sidewalks, airport, wells, and police.

According to the audit, the liquor store funds have increased five years in a row. Sales increased by 8.8 percent this year from $613,156 in 1999 to $667,219 in 2000.

The audit showed operating revenues in the water fund increased 13.41 percent from $287,454 in 1999 to $326,014 in 2000. Expenses remained virtually identical over the two years.

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