Despite difficult times, the Redwood Falls City Council heard a positive audit of its finances for the previous year.
At Thursday’s city council meeting, the annual city audit was presented by the accounting firm of CliftonLarsonAllen.
• The assets of the city exceeded liabilities by $78,641,431.
Of this amount, $34,870.444 may actually be used to meet the city’s ongoing financial obligations.
• The city’s total net position increased by 2.8 percent over 2011, or by slightly more than $2 million.
• The city made principal payments on bonds in the amount of $1,422,192 during 2012.
• The net position of the city’s business-type activities increased by slightly more than $2 million, or by 4.2 percent.
In 2012, revenues for the city’s governmental activities decreased by $349,621, or by 5.7 percent.
Reasons for the decrease:
• Lowered charges for services from 2011 to 2012, partly due to reimbursements from the 2011 wind storm that caused damage in the city.
• Grants and contributions in 2012 were down by $309,000 from the year before, again because of the wind storm the previous year.
Actual revenue was more than budget in 2012 by $383,298.
In 2012, the city’s expenditures increased by $474,518. In 2012, 33.87 percent of the city’s expenditures were spent on culture and recreation, significantly higher than most other cities of the same size.
Most of the difference comes from the responsibility of maintaining the park and the Redwood Area Community Center.
The next highest expenditure was public safety, that took up 22.71 percent of the city’s spending.
Highways and street maintenance was the third highest expenditure, costing 18.63 percent.
General government, economic development, and the airport made up most of the remainder.
For 2012, the net property tax levy per capita came to 395.13 dollars, or approximately four dollars less than the previous year.
As for long-term debt, the city currently has $29,278,459 in outstanding bond obligations. In 2012, $1,422,192 of that debt was retired.
As for setting city budgets, the auditors noted the major factor the city council and staff have to take into account is balancing personnel and infrastructure costs, with a shifting tax base and reductions in government aid.