By By MIKE VOSS
Contributing Editor
An audit of Washington’s books for fiscal year 2008-2009 resulted in a “clean” report, according to Crystal Waddell with Martin-Starnes &Associates.
Waddell, who works for Martin-Starnes, the city’s auditors, presented the audit report for the 2008-2009 fiscal year, which ended June 30, to the Washington City Council on Monday. The audit is a “snapshot” of the city’s finances on June 30.
Waddell said the report shows the city’s financial reporting is in compliance with state and federal guidelines.
The report shows the city’s fund balance in the general fund (which pays for day-to-day operations of city government) increased by $845,626 from fiscal year 2007-2008 through fiscal year 2008-2009, coming in at $9,414,678 at June 30.
That doesn’t mean Washington has $9.4 million in its rainy-day fund to spend as it wants or in case of emergencies. Some of the surplus, about $2.8 million, has been reserved for obligations such as paying down debt or set aside for specific projects, programs and equipment purchases.
The unreserved, undesignated part of the fund balance came to $5,536,430 on June 30. On June 30, 2008, the unreserved, undesignated part of the fund balance came to $4,987,212.
Waddell said the city’s overall fund balance is in good shape, with the city having about seven months’ worth of operating revenue on hand in the fund balance.
Still, city officials have concerns regarding revenues this fiscal year.
They noted that so far this fiscal year, which began July 1, the city’s revenues are about $1.2 million less than they were during the same time period in the 2008-2009 fiscal year. Councilman Doug Mercer said the city may find itself closely watching its spending later this fiscal year if that trend continues.
Mercer said the city’s financial picture contains a mix of good news and not-so-good news.
“The good news was that at the end of June, our fund balance was up about $900,000,” Mercer said. “The bad news is our debt service went up about 47 percent.”
The city’s per-capita debt service increased from about $350 per resident to about $500 per resident, an increase of about $200,000, Mercer said.
City officials know they will dip into the fund balance this fiscal year to pay for certain projects and programs.
To fund a workers’ compensation-claims reserve fund, the city chose to take $600,000 out of its fund balance. The city also will dip into its fund balance to pay for a new trash truck and a bucket truck at a combined cost of about $284,000. Those appropriations will decrease the unreserved, undesignated part of the fund balance by those amounts.
Mercer said by taking money from the fund balance to pay for the trucks the city saves the interest it would have paid if it bought the trucks on a 59-month installment-purchase plan.
For additional coverage of the council’s meeting, see future editions of the Washington Daily News.