Bottom line looks good, audit says
City's revenue and assets are on the increase
Brendan Hoover
Mustang received an unqualified opinion from an independent accounting agency for the 2005-06 fiscal year in its yearly audit mandated by the city’s charter, reported Finance Director Brenda Wright at the City Council’s regular meeting Dec. 19.
The Council accepted the audit unanimously.
In her report, Wright stated the unqualified opinion is a fair and clean statement of the financial position of the city and its component units.
“This is the best opinion that can be issued on the financial statements,” Wright said in her report.
The report stated the total net assets of the city increased by $4.6 million or 19.5 percent from the prior year.
“This means taking all funds of the city (general, MIA, special revenues, debt service, capital project) and subtracting the total liabilities (what we owe) from the total assets (what we own). We are better off by $4,649,123,” the report stated.
Wright explained the increase in assets did not mean the city had that mean the city had that much more cash.
“The majority of our increase is due to infrastructure assets (streets, drainage, water lines and sewer lines) built by developers and donated to the city. The assets are recorded at the fair value ($3,155,544) at the date of donation and depreciated over their useful lives,” she reported.
Wright told the City Council that revenues for the year increased by $16.9 million or 9.7 percent over the prior year, due to the continued residential and commercial growth of Mustang. Major revenue sources included: sales and use tax, 35 percent; charges for services, 19 percent; and capital grants and contributions, 19 percent.
The cost to operate continues to increase as the city grows but at a slower rate, Wright reported. Total operational cost increased by 1.6 percent over the last year. A programming cost breakdown included the following: water, sewer and sanitation, 30 percent; administration, 29 percent; public safety, 24 percent; and culture and recreation, 13 percent.
“I really just want to point out to everyone that we are doing very well financially. We are very conservative as a city government,” Councilman Scott Gibson said during discussion of the audit.
Gibson led the meeting as Vice Mayor due to Mayor Jeff Landrith’s absence.
City Manager David Cockrell suggested the increased revenues and slowly increasing operational cost of the city indicated the efficiency of city government.
Wright reported the city received its first certified bond rating to the 2006 Revenue Bonds. Factors that hindered the city in receiving a higher rating was the current population, under 20,000, and limited retail development.
The city saved taxpayers $7.1 million in interest over the next 15 years by refinancing bonds, Wright reported. The city refunded a portion of the 1999 MIA Revenue bonds with the issuance of the 2006 Utility System Refunding Revenue Bonds. The money saved was a result of taking advantage of the low interest bond market and the increase in sales tax received from the one-cent restricted for bond retirement, the report states. The term of the new bonds were shortened by seven years.
“A successful financial year is based upon more than the numbers. A successful year also includes establishing sound financial practices, exploring new revenue streams and planning for the future,” Wright wrote in her report.
Gibson, alluding to the recent bond election failure, said: “We saved more money than a new ball park would have cost. I wonder what it will take to gain the city’s trust.”
In other City Council business:
Jury qualifications for prosecutions in municipal court increased from $200 to $500.
The fire department will solicit bids to install a new heat and air conditioning system in the fire station that will cost less to operate.
Councilman Jay Adams will hold a Ward One town hall meeting on Jan. 29 at the Mustang Community Center to familiarize citizens to the changes of his ward due to the new ward boundaries.
City's revenue and assets are on the increase
Brendan Hoover
Mustang received an unqualified opinion from an independent accounting agency for the 2005-06 fiscal year in its yearly audit mandated by the city’s charter, reported Finance Director Brenda Wright at the City Council’s regular meeting Dec. 19.
The Council accepted the audit unanimously.
In her report, Wright stated the unqualified opinion is a fair and clean statement of the financial position of the city and its component units.
“This is the best opinion that can be issued on the financial statements,” Wright said in her report.
The report stated the total net assets of the city increased by $4.6 million or 19.5 percent from the prior year.
“This means taking all funds of the city (general, MIA, special revenues, debt service, capital project) and subtracting the total liabilities (what we owe) from the total assets (what we own). We are better off by $4,649,123,” the report stated.
Wright explained the increase in assets did not mean the city had that mean the city had that much more cash.
“The majority of our increase is due to infrastructure assets (streets, drainage, water lines and sewer lines) built by developers and donated to the city. The assets are recorded at the fair value ($3,155,544) at the date of donation and depreciated over their useful lives,” she reported.
Wright told the City Council that revenues for the year increased by $16.9 million or 9.7 percent over the prior year, due to the continued residential and commercial growth of Mustang. Major revenue sources included: sales and use tax, 35 percent; charges for services, 19 percent; and capital grants and contributions, 19 percent.
The cost to operate continues to increase as the city grows but at a slower rate, Wright reported. Total operational cost increased by 1.6 percent over the last year. A programming cost breakdown included the following: water, sewer and sanitation, 30 percent; administration, 29 percent; public safety, 24 percent; and culture and recreation, 13 percent.
“I really just want to point out to everyone that we are doing very well financially. We are very conservative as a city government,” Councilman Scott Gibson said during discussion of the audit.
Gibson led the meeting as Vice Mayor due to Mayor Jeff Landrith’s absence.
City Manager David Cockrell suggested the increased revenues and slowly increasing operational cost of the city indicated the efficiency of city government.
Wright reported the city received its first certified bond rating to the 2006 Revenue Bonds. Factors that hindered the city in receiving a higher rating was the current population, under 20,000, and limited retail development.
The city saved taxpayers $7.1 million in interest over the next 15 years by refinancing bonds, Wright reported. The city refunded a portion of the 1999 MIA Revenue bonds with the issuance of the 2006 Utility System Refunding Revenue Bonds. The money saved was a result of taking advantage of the low interest bond market and the increase in sales tax received from the one-cent restricted for bond retirement, the report states. The term of the new bonds were shortened by seven years.
“A successful financial year is based upon more than the numbers. A successful year also includes establishing sound financial practices, exploring new revenue streams and planning for the future,” Wright wrote in her report.
Gibson, alluding to the recent bond election failure, said: “We saved more money than a new ball park would have cost. I wonder what it will take to gain the city’s trust.”
In other City Council business:
Jury qualifications for prosecutions in municipal court increased from $200 to $500.
The fire department will solicit bids to install a new heat and air conditioning system in the fire station that will cost less to operate.
Councilman Jay Adams will hold a Ward One town hall meeting on Jan. 29 at the Mustang Community Center to familiarize citizens to the changes of his ward due to the new ward boundaries.
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