The city of Andalusia was pleased with the results of an inspection of budget for fiscal year 2022.
Gail Hayes of Rabren, Odom, Pierce and Hayes accounting firm, told the city council at the city council’s workshop meeting in the morning of Tuesday, that her audit had positive findings with respect to internal controls and that the financial standing of the city is still strong.
For the fiscal year 2022, Hayes reported that the city’s asset outflow was greater than its liability intakes by nearly $42 million. which is an increase of $3.5 million year-over-year.
The total cash flow was around $31.3 million, which is an increase of nearly $21 million. The figure could be overinflated because of a bond issue which included funds that were allocated to be used for projects in the future. Unrestricted cash grew by over 1 million over the course of the year and left the city with unrestricted cash that are just under $10 million.
The city acquired various assets in the fiscal year of 2022. The city also invested in a variety of economic development initiatives at around $2.7 million, which includes Covington Casket and the Prestwood Building. Prestwood Building and Covington Casket projects. Equipment purchases that were put into operation in the year-end fiscal year included $1.5 million worth of mowers as well as an Freightliner truck, as well as other things.
The total revenue of the city exceeded $25 million in FY22, which was up by $240,000 from the previous year. Sales tax earned $11.7 million, which is an increase of around $775,000 over FY21.
“When I was on the council, our budget included $11million. Today, we are collecting sales taxes that are the same amount. We’re doing things right,” said Councilman Terry Powell.
In addition to providing an insight into the increase in cities’ sales tax revenues, Hayes stated that in FY19, the city’s sales tax revenues were $9.3 million. “It’s growing each new year,” Pierce said.
The total equity of this city stands at $42.3 millions in equity. This is a rise from $38 million in FY21.
“What this means is that for FY22 our net profit was greater than $3.5 million. We have seen an increase in net income each year since the year 2013. The city isn’t in a position to make profits, but instead providing services. To do this it is necessary to earn the money to fund it. City is currently in excellent financial condition. These financial statements show,” Hayes said.
The council will look over the audit report and documents. The council will be placed on a subsequent agenda to be considered and decide whether to approve.
Things discussed at an ordinary portion of council’s meeting comprised:
- talking about a local property known as “The Boarding House”,” situated in S. Cotton and Watson streets. After a state-wide inspection in the year 2019 the state was cited for the property for code violation. In recent times, the city’s municipal court decided that the owner of the property was not authorized to operate a boardinghouse and that the property was still not up to standards. The owner of the property has filed an appeal to the ruling, which means the case will be heard in the circuit court. In the opinion of city representatives the property was originally regarded as a boarding facility however, after it was not employed for this reason for more than one year, and also the change of ownership was made, the property no longer qualifies as a “non-conforming usage” in the city’s Zoning Ordinances. The city council authorised the City Attorney Mark Christensen to seek a court order to end the operation of the boarding facility in light of the safety issues.
- Approving a change order to the city’s sidewalk and street projects located on Henderson Street and Coleman Avenue which is located behind Andalusia High School. The council also approved the payment of an additional $60,000 from the capital investment fund, to increase curb and gutter repairs by 270 feet.
- The board members’ approval was given. Ed Short, John Taylor and Mike Ward were each re-appointed to the city’s Industrial Development Board to fill the six-year term. Additionally, the city has extended by one year the tenure of the current IDB members Beth Woodard in order to establish proper staggered terms for those on the IDB. The city is currently accepting applications for an additional IDB seat that was previously filled by Jim Smith who has resigned.
The city also renewed the appointment of Billy Joe Stallworth and Emma Locke to the city’s recreation board. A new member named Billy Bergfield — was named to fill a seat previously filled by Randy Wahl.
The city council’s next meeting will take place on Tuesday, October. 17 6 p.m. at the city hall. A working session will begin at 5:45 p.m. Everyone is welcome to take part.
The article Andalusia gets an FY22 financial audit that is positive was first published in The Andalusia Star-News.
