The third and final audit report to a North Fork Valley town council was delivered on July 11 in Hotchkiss.
Auditor Pete Blair of Blair and Associates gave his management report which summarized the 2012 audit.
The town had budgeted $1.1 million in the General Fund for 2012 and actually ended with $1.4 million. The Sales Tax Capital Improvement Fund was budgeted for $106,908 and had an ending budget of $527,628. The Conservation Trust Fund is close to what it was in 2011. The town budgeted zero and ended up with $341.
The Water Fund increased by about $400,000 compared to 2011. It was budgeted at $1 million, but ended at $1,273,691. The Sanitation Fund was a little higher than in 2011 which was $617,510. At the end of 2012, it was $629,150. It had been budgeted at $339,214. The Garbage Fund was budgeted at $2,293 and ended at $6,508. It was $3,808 in 2011.
"All the funds did better in 2012 than they did in 2011," Blair said. "I think you budget on a very conservative basis and that's a good thing."
As for revenue, the town budgeted for the General Fund $483,916 and actually took in $546,934. The Sales Tax Capital Improvement Fund was budgeted at $555,681, but because the town did not get a CDOT grant, only had revenue of $246,037. Conservation Trust Fund revenue was close to the budgeted amount of $4,000. The fund finished 2012 with $4,714. The Water Fund was budgeted to receive about $1.4 million but had actual revenue of $683,473 because of grants and loans that are yet to be received. The Sanitation Fund was budgeted for $210,200 and ended up at $213,638. The Garbage Fund was budgeted at $100,225 and was actually $100,278.
Blair wrote in his management report, "The largest variance in actual revenues compared to the budget for the General Fund was an increase in revenues from sales tax, severance tax and mineral leasing of $49,105. The Sales Tax Capital Improvement Fund's largest variance was an increase in sales tax of $21,088 and decrease in grants of $329,000. Water Fund had a decrease in grants and loans of $742,748."
In regard to operating expenses, the General Fund was budgeted for $763,150 and actually spent $710,629. The difference was in spending $26,351 less in general government and $29,627 less for the police department.
During the audit, about 85 percent of the town's revenues and 75 percent of the expenditures were tested. There were no problems at all. "Overall, we think the staff is doing a great job," Blair said.
The governmental funds increased by about $105,000. "That is important because we have Tabor restrictions and you don't want your governmental funds to go down too much because when they go ratcheting down it's hard to get them back up because of Tabor," Blair said.
The General Fund increased by about $89,000. Its ending balance is about $1.4 million. The total expenditures for the General Fund are about $710,000. The town has about two years of reserves. Most governments have six months.
The town had long-term debt increase of about $268,000 for the water plant loan. It is an interest-free loan. Annual payments are about $52,000.
In conclusion, Blair said the Town of Hotchkiss is in a good financial position. The town was in a lot better shape in 2012 than in 2011.blog comments powered by Disqus