City of Dexter Receives Financial Audit
By Doug Marrin, STN Reporter
At its January 24, 2021 meeting, the Dexter City Council received the City’s completed financial audit for the year ending June 30, 2021. Rana Emmons, CPA with PSLZ PLLC Certified Public Accountants did the presentation.
“I do have a very good report for you this evening,” began Emmons. “The City did receive the highest rating possible which is an unmodified opinion. I have nothing bad to report to you. This is the audit opinion you want on your report.”
An auditor gives an unmodified opinion if the financial statements present a true and fair view. On the other hand, a modified opinion means amendments have to be made in order for the financial statements to be transparent and clear.
Ms. Emmons touched on a few highlights beginning with the General Fund. In the written report, PLSZ stated,
“The change between the total original and final amended budgeted revenue amounts was an increase of $402,900. The budgeted revenues were increased $77,900 for an increase in state revenue sharing and $290,000 for an increase in personal property tax reimbursement from the State.”
“The final amended budgeted expenditures in the General Fund increased by $300,100 over the original adopted budget. The park capital improvement budget was increased by $285,000 for Mill Creek Park Phase II improvements and general capital outlay was increased by $25,000 for facility improvements. The City ended the fiscal year with actual expenditures under the final amended budgeted expenditures by $202,910.”
Ms. Emmons explained the City’s main sources of income were property taxes, seizure revenue, and investments. Tax revenue is up this year because of an increase in property values. Seizure revenue is up about $18,000 from the prior year.
“The interest income, however, went down,” said Emmons. “That’s not because of anything you’re doing wrong. You do a really nice job on the investments, and you’re very conservative with your investments. It’s because nobody is making any money on interest this year.”
More good news came regarding operating expenses. “I want to report to you that your operating expenditures are pretty much even with the prior years,” said Emmons. “That means your biggest expenditures really are salaries, wages, and benefits."
Operating expenses for year-end 2020 were $8,386,145 and for 2021 expenses were $8,178,206.
Ms. Emmons pointed out another strength for the City. “You are significantly paying down the pension liability,” she said. “You’ve done that purposefully. You’ve planned for that, and it’s really showing in the bottom line.”
The City’s pension fund is now 90 percent funded. Of the $4,855,500 total pension liability, $4,369,264 has been paid in trust leaving a $486,236 net liability.
After the assets and liabilities were balanced, the bottom line showed Dexter’s net position at $21,692,221, up from $19,522,217 for year-end 2020.
The entire audit can be found in the council meeting packet posted on the City’s website.