NYM City Council receives positive news about annual audit report
By Chad Koenen
The City of New York Mills has maintained a healthy general fund balance, despite several unexpected projects over the past year.
During its regularly scheduled meeting on Tuesday night, the City of NY Mills received its 2021 year end audit from John Hagen of Eide Bailly. Hagen said the city’s unrestricted fund balance in the general fund is 90 percent of disbursements for the year, which is about what the city has maintained over the past 10 years.
“The city would be able to operate without any future receipts for about 10 months,” said Hagen.
The unrestricted balance in the city’s general fund is up significantly from 2018 when the city had just 58.1 percent of disbursements in the general fund. However, it is down from a 10-year high from 2012 when it maintained a 94.7 percent balance.
Last year the city’s general fund grew by $175,169 after a sale of capital assets resulted in $347,684 of additional revenue. The city received 22.2 percent more revenue than anticipated, much of that was due to a large increase in intergovernmental aid due to COVID-19 funding and additional grants, while disbursements were overspent by 38.7 percent. The increase was largely due to unbudgeted expenditures at the new T-19 building in downtown NY Mills.
Hagen credited the city for having such a positive fund balance at the end of the year, which can contribute to a favorable bond rating, produces investment income and provides a source of working capital to meet cash flow needs, as well as offers a cushion for unexpected expenditures or revenue shortfalls.
The audit also showed the city’s water and sewer fund showed a negative cash balance at the end of 2021. However, those negative cash balances were more-than offset by a positive natural gas fund. Sales at the city-owned liquor store also increased last year.