Commerce’s total net assets decreased by $46,000 over the 2011-12 fiscal year that ended June 30 and its total revenues fell by $285,000, but the city’s auditor called that the city’s “best financial performance in the last five years.”
Steven Wilcox presented the audit to the Commerce City Council Monday night. While he reported on the decrease in total net assets, he also pointed out that a $46,000 loss was an improvement over the $129,000 decrease the year before.
And although the city’s total revenues dropped by almost $300,000, Wilcox told the council that total city expenses fell by $414,000.
“The city reduced its total outstanding debt by $526,000,” Wilcox added.
“Overall, the city’s financial position improved over the prior year, and the city had its best financial performance in the last five years,” he concluded.
During the year, the city’s proprietary funds (utility funds) transferred $581,000 to the General Fund, and cash in those funds increased by $433,000 to $6 million, the auditor said. As of June 30, the city had $16.8 million in cash and investments, of which $6.7 million was classified as unrestricted and $10.1 million classified as restricted.
James Wascher, the city’s finance director, called the past fiscal year “one of the best years we’ve posted in awhile” and the audit “good news.”
But Wascher cautioned that the city’s water and sewer fund continues to depend on SPLOST for capital needs, saying he’d like to see it “a little more self-sufficient” in the future.
He also pointed out that revenue from the Gas Department suffered a net loss of $238,736 “mainly due to a poor earning season. Basically, we had no winter. If it’s not cold, people aren’t burning gas.” Meanwhile, he said, Commerce has wholesale electricity to sell, but few buyers in a depressed economy. He noted the “tough decisions” of the past year, but said the city is “posturing well” financially for the future.
Mayor Clark Hill asked Wascher to prepare a “breakout” of the enterprise fund balances, showing levels of reserves and “what our target (level) is, so as we go forward on our next budget we can begin working in that direction.”
