City council hears latest audit report
Franklin City Council members met in special session Monday to receive its 2012 audit report.
Barbara Watts of Darnall, Sikes, Gardes & Frederick, gave the city an unqualified opinion with only minor flags in the audit report.
The city posted a $652,661 end-of-year deficit of revenues in the general fund. Watts explained that during the fiscal year the city, on advice of bonding counsel, paid off roughly that amount of existing bonds. This technically threw the budget out of the state-mandated 5 percent deviation regulation and was cited.
But the city promptly bonded over $1.5 million more for various improvements in infrastructure, including renovations to city hall and street repairs.
The city had posted a $194,351 excess in 2011.
Intergovernmental funding, namely FEMA reimbursements for battling the 2011 flood event, also factored into the bottom line due to timing of work performed versus when the federal agency actually dispersed the reimbursements.
After agency fund transfers, capital lease proceeds, operating transfers in and out, the final general fund deficit tallied at $381,686.
The good news was in the utility fund. Water sales were $320,714 above 2011, and Watts credited that to efforts to fix leaks and become more efficient in water production. The utility fund posted a $130,444 surplus over expenses.