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City receives annual financial audit
The city of The Colony weathered ongoing economic turmoil last year just fine, say its accountants.
The Colony City Council recently received its annual financial audit from BKD CPAs and Advisors, based on data for the last financial year which ended Sept. 30, 2011.
Kevin Kemp from BKD, in conjunction with Finance Director David Cranford, reported that The Colony has net assets totaling $191 million, with unrestricted net assets of $13.8 million.
These primary numbers indicate the city is in good financial position, Kemp said.
“Certain cities that we audit, you’ll see [unrestricted net assets] is actually a deficit number thanks to the economy the past three or four years and net pension obligations,” he said. “[But] The Colony is off to a strong financial position.”
The Colony enjoys a general fund balance of $7.9 million, which represents over 33 percent of the city’s current year general fund expenditures, Kemp said.
“Most cities try to keep that around the 15- to 20-percent range and think they’re doing pretty good but you have well exceeded that,” he said.
The only downside to the report was a net loss in assets from the previous year of $806,575, “which includes depreciation on streets, infrastructure, and all of the water and sewer assets,” Kemp said, adding that those assets combined for $8.6 million.
Council member David Terre asked where the city stands financially on a 1-10 scale compared to other cities in the area.
“I’d give you at least a nine,” Kemp said. “I’ve seen cities borrow to pay their pension obligations… or delay capital projects but you are continuing to do capital projects. It’s good times here.”