Commission Meeting Minutes

Presentation and Acceptance of the Audit Report for the Fiscal Year Ending September 30, 2021 (Chet Ross of Shumacker, Johnston and Ross)

Mr. Ross presented the towns’ annual comprehensive financial report for the fiscal year that ended on September 30, 2021. He said in the last couple of years the audit report had an “emphasis of matter” paragraph. This paragraph is included by auditors to direct the attention of users of financial statements to a disclosure which during those years was the pandemic. It is not included in this year’s report; it did not have much of an effect on the last two years’ audits anyway.

In looking at some of the key numbers this year, such as the half-cent sales tax, that number is up $168,000; revenue sharing is up $84,000 and infrastructure tax is up $50,000. Those are the key figures that would be affected economically by the downturn but that is not happening anymore.

The town was very prudent in their budgeting in that the intragovernmental revenues, which is where most of the revenues come from, were $334,000 over budget. The town has been conservative. The governmental funds went up another $1.8 million and the utility fund went up $976,000. Regarding the utility fund, the operating loss was only $147,000 with depreciation factored in. Normally the town loses $500,000 every year. What has happened with taking on new revenue (such as with Fruitland Park and Water Oak) is that expenses were flat, but revenue increased by about $400,000.

The town’s total unrestricted net position as of September 30, 2021 was $18.8 million which is a strong financial position. The town has, however, some large utility projects underway and Mr. Ross suggested that the town not borrow any money to complete those projects. With the $18.8 million plus the $8 million of ARPA (American Rescue Plan) funds, borrowing should not be necessary.

Mr. Ross announced that he will be resigning as our Town Auditor because his workload is too heavy. He has been the town’s auditor for 32 years. He will provide consulting services if requested to do so during the transition period, especially in preparing financial statements.

Commissioner Kussard made a motion to accept the audit report for the fiscal year ending September 30, 2021; Commission Hannan seconded. Motion carried 5-0.

Finance Director Winegardner said the town has been presented with their 26^th award for excellence in the town’s financial report with thanks going to our auditor, Chet Ross.