Washington’s fiscal books for fiscal year 2016-2017 are in outstanding condition, according to the city’s latest audit report.

That report was presented during the City Council’s Jan. 8 meeting. The audit was performed by Martin Starnes & Associates, which gave the city an unmodified opinion — the highest recognition possible — on its accounting procedures. The audit found no significant material weaknesses or deficiencies in the city’s internal controls over its finances.

The report shows the city took in $11,611,886 in revenue in its general fund (day-to-day operations) for that fiscal year, which ran from July 1, 2016, to June 30, 2017.  The city spent $11,482,562 in general-fund expenditures for that fiscal year, or $129,324 less than it took in. Those revenues and expenses do not include transfers or debt issued.

In the previous fiscal year, the city took in $11,099,297 in revenue for its general fund and spent $11,558,218, meaning the revenues did not cover expenses.

At the end of the 2016 fiscal year, the city’s fund balance (rainy-day fund) was at  $7,269,872. At the end of the 2017 fiscal year (June 30, 2017), the fund balance was at $8,401,662, an increase of $1,131,790.

Of that $8,401,662, the city had $6,873,791 available to use under an unrestricted basis. The remaining $1,527,871 that could not be spent because state law places restrictions use of the fund balance.

City Manager Bobby Roberson, asked if one thing in the report stood out to him, said, “Absolutely. There’s no question about it. It’s the amount of money we had in the general fund. We had a $1.2 million increase in the fund balance. … That was the most important thing, I think, that I saw.”

Roberson said the general fund revenues coming in at more than general fund expenses was good news, too.

The Local Government Commission, which oversees finances of local governments, recommends a local government have a fund balance of at least 8 percent of its annual general fund budget. For fiscal year 2016, the city’s fund balance (general fund) was 47.53 percent, increasing to 57.29 percent in fiscal year 2017.

The report shows the city’s debt service declined from $252,696 in fiscal year 2016 to $221,347 in fiscal year 2017, which reflects the pay-as-you-go policy for major capital expenditures the city adopted several years ago.

The report shows the city transferred $908,723 from its electric fund to the general fund during fiscal year 2017 to help balance the general fund.

Several years ago, the city was transferring a little more than $1 million each fiscal year from the electric fund to the general fund. In fiscal year 2012, the city transferred $973,150 from the electric fund to the general fund. By fiscal year 2015, that transfer fell to $470,000. In fiscal year 2016, that transfer was $654,281.

Council members have said they want to eventually wean the general fund off transfers from the electric fund.