Coronavirus relief funds, increase in tax revenue and conscientious spending helped Grantsville pay its bills and increase its net position by $5.1 million for the fiscal year ending June 30, 2020, according an independent auditing firm.
“I want to point out that Grantsville’s total net position increased by over $5 million for the year, which is a good thing,” said Spencer Hintze with Gilbert & Sullivan, certified public accountants. Hintze presented the budget review and the City Council accepted and approved it at Wednesday’s meeting.
The firm has conducted independent audits for Grantsville City for the past five or six years, he said.
Hintze praised Grantsville City for its internal accounting practices. He said the audit went smoothly because of a very knowledgeable staff.
He highlighted the superb work of City Finance Director Sherrie Broadbent and Steve Rowley who works for Keddington & Christensen, LLC. Grantsville City contracts with Keddington & Christensen as internal auditing services.
“It’s a team effort,” said Mayor Brent Marshall. “We like everybody else had our challenges this year. It’s enlightening to know that private enterprise came in and showed our books are in order.”
Grantsville’s total revenues for the year came in at $15.8 million with expenditures at $10.7 million.
Major expenditures included public safety at $3.3 million, general government $1.7 million, and water services $1.6 million.
The report showed revenues in the General Fund came in $961,951 higher than anticipated. “Another good thing,” Hintze said.
The increases were most notably from Coronavirus Relief Funds received, and increase in sales and other taxes. Due to conservative budgeting and conscientious spending, expenditures in the General Fund were $328,764 less than budgeted.
Mayor Brent Marshall mentioned that sales tax provided 17% of total revenue for the year and property tax 13%, and those figures used to be the other way around in previous years. He said legislation now allows sales tax revenue from online purchases by Grantsville residents to be funneled to the City.
Grantsville City’s total debt decreased by $207,000 during the current fiscal year as a result of bond payments being made.
Other financial highlights showed business-type activities increased by $3,346,218, total revenues of both governmental and business-type activities tallied $15,818,183.
Actual revenues received in the general fund were $96l,95l more than budgeted while actual expenditures were $328,764 less than budgeted.
At the end of the current fiscal year, the unassigned fund balance in the general fund was $l.6 million
The Water, and Sewer enterprise funds reported increases in net position of $2.4 million and $962,633 respectively, while the Garbage enterprise fund reported a decrease in net position of $69,128.
Grantsville is losing some money in water, sewer and garbage expenses. Water department revenue is 14% of total revenue while expenses are 15% of total revenue. Sewer revenue is 10% while expenses are at 12%, and garbage collection revenue is at 6% while expenses are 8%.