The Pinson City Council received excellent news from the city’s independent auditing firm, Borland Benefield. Charles Polmatier, an auditor with the firm, presented his data and opinion at Thursday’s council meeting.
“The city is in a strong financial position,” Polmatier said. “When I say that, I speak of your funds, as well as your assets.”
Polmatier said the city’s finances would be graded an ‘A’ if he were able to give one. A city is considered to be in a good financial situation if it could operate for four to six months only on reserves. The audit showed the city could theoretically operate for more than a year just off reserve funds. This does not mean that the city has hoarded money, however, Polmatier said. According to him, the council has been a responsible custodian of resident’s funds. This has been done by being conservative with spending and using funds primarily for assets that improve the city.
“Our asset list is growing,” Mayor Hoyt Sanders said. “Those increased $505,000 this year. The traffic signal we purchased was the largest one at $100,000. The other was the purchase of the park land.”
The audit shows financial growth in every area. Total net assets were over $3 million as of June 30, 2012. This is an increase of over $500,000 over the last year. Sales tax revenue has increased to over $990,000 this year, versus just over $746,000 last year. The general fund exceeded its operating expenses by over $114,000
. Total tax revenue increased nearly $200,000.
This is in contrast to nearby Birmingham, which has had to borrow funds in order to meet obligations.
“Most cities are seeing modest financial growth, if any,” Polmatier said. “Many are seeing losses. In all the significant areas we can see, you have increased.”
The firm found no financial or management issues that needed to be addressed.
“Pinson is a great city,” Polmatier said. “This is one of the best places we have (as a client).”