The city of Monett has received a positive audit in the annual review of city books by the accounting firm of The CPA Group for the fiscal year that ended on March 31, 2012.
Representatives of The CPA Group presented their findings at a work session of the Monett City Council.
Total net assets held by the city at the end of the year increased by $755,065. The total debt decreased by $4,885,379, mostly because of a payment of $3.7 million on the principal of the tax increment financing (TIF) program debt from the Missouri Department of Transportation. The payment represented the state's cost share for improvements on Highway 60 and retired the original debt on Monett's first TIF district.
The city presently has $65,604 in general obligation bonds and is scheduled to make $15,753 in payments during the current fiscal year. The city owes on $8 million in revenue bonds and is due to pay $580,000 down on them in the current year. The city also has nearly $2 million in debt through lease purchases and is slated to make $465,870 in payments on that debt this year.
The city also holds $10.3 million in debts in revenue bonds and capital leases for its water and sewer systems. Payments totaling $571,060 are due on those in the coming year.
Governmental funds decreased by $658,317. The city used the money for the settlement in the lawsuit with Jason and Jennifer Inman, renovations on the Community Center, building a new salt barn for the street department, equipment purchases, purchase of the building at 508 Bond for the building inspector's office and airport improvements.
City utility assets increased by $1.4 million. Water sales generated a net income of $720,964 and electric sales produced $808,943 in net income. The sewer system recorded its third consecutive year in the red with a loss of $179,033. The sanitation service remained in the black by $55,683 and the fiber optics service made a profit of $6,825.
Out of the general fund the city spent $8.8 million. Of that, $803,152 came from fees and grant revenue. Revenues totaled $7.3 million, generated from sales tax, motor fuel tax, franchise fees, payments in lieu of taxes and investment income. The city's government fund balance of $3.4 million was $658,317 lower at year's end than at the beginning.
The city spent $20.4 million buying electricity and running utilities. The services sold raised $24.8 million. Nearly $3 million of the utilities revenue was transferred to pay for other services in departments that do not generate revenue.
The assessed valuation of city property totaled almost $134 million at year's end. The city only issued $355,604 in general obligation debt, leaving a potential to borrow an additional $26.4 million before reaching its limit.
The city has 116 full-time employees. Total payroll is almost $3 million on salaries for employees paid out of the general fund in the audited year. The total was $56,063 less than had been budgeted. An additional $1.7 million was spent in salaries on the utilities department and sanitation workers, departments that generate revenue.
Participation in the state LAGERS retirement program showed improvement over the past year, thanks to a rebound in the value of investments held by the state. The value of the city's participation in the program ended the year at $9.9 million, with $1.1 million in liability not covered, a decrease from recent years.
A copy of the city's audit is available for review on the city's webpage, www.cityofmonett.com.