Audit: City improves financial position for sixth consecutive year
The City of Andalusia increased its net position for the sixth consecutive year, auditors told the Andalusia City Council on Tuesday.
Missy Pierce, CPA, and Gail Hayes, CPA, from Rabren, Odom, Pierce and Hayes, P.C. presented a draft of the city’s audited financials for fiscal year 2020 Tuesday night. The council approved the draft.
Pierce said the city increased its net position by $6 million in FY 2020. The value of the City of Andalusia’s assets and deferred outflows exceeded its liabilities and deferred inflows by $34,467,797 at the end of FY 2020, Pierce said.
City revenues increased by almost $3 million over the prior year, she said, and expenses decreased by $1.4 million, or 7 percent.
“The city is in the strongest financial position it has ever been in,” Mayor Earl Johnson said. “This is over-the-top good news for the city, and it is because of the guidance of the council and the contributions of everyone who works for the city.”
Other highlights included:
• The City’s cash balance at Sept. 30, 2020 was $13,696,832, which was an increase of $3,172,844 from the prior fiscal year. The City’s unrestricted cash increased by $1.1 million from the prior year, and represents approximately 49 percent of the balance at year end.
• The City made payments of $1,093,110 on its long-term debt during the 2020 fiscal year.
• The City’s governmental activities reported $24,821,535 generated from taxes, program revenues, and transfers in, a 13.5 percent increase over the prior year. The program expenses for the governmental activities were $18,628,785, which is a decrease of 7 percent from the prior year. This resulted in an excess of revenues over expenses of $6,192,750.
• The City’s largest single source of revenue, sales and use tax, increased approximately $910,871 from the prior year.
Pierce said the auditors issued an unmodified opinion, “which is the best we can give.”
• Agreed to pursue a Community Development Block Grant to improve water lines on North Cotton and Eighth Avenue, and to resurface the streets after the water lines are updated.
• Approved a retail liquor application for The B Pub LLC, located at 239 Church Street in Andalusia.
• Appointed Seth Hammett to the Utilities Board of the City of Andalusia.