City of Madison: finances unsteady but improving

At the City Commission meeting on Tuesday, May 12, Richard Powell of Powell and Jones CPA, spoke to the commissioners about the financial audit for the fiscal year October 1, 2013 to September 30, 2014. The current budget the city is working under started October 1, 2014. The report shows that the city’s finances are unsteady but are improving and show signs of recovery from the deteriorating financial condition. Over the years, accumulated deficits have been offset by Transfer Ins from other funds, primarily the Water and Wastewater Enterprise/Proprietary Funds. As a result, these transfers have reduced the city’s net assets and made the city dependent upon the Enterprise Funds. A continuation of this trend could deplete the city’s financial reserves in the near future. According to the audit, to correct the deteriorating financial condition, the city must implement strict measures during the current budget cycle to assure recurring revenues are sufficient to fund recurring expenditures and replenish needed fiscal reserves in the General Fund as well as the Enterprise Fund. “On a daily basis we are looking at almost everything we are spending to try to bring that down,” said City Manager Tim Bennett. “The intent is to increase incoming revenue and decrease expenditures to get our financial house in order.”