Audit Report at Neillsville City Council Meeting
Monday, March 30th, 2020 -- 8:38 AM
-The Neillsville City Council heard the Audit Report at their meeting last week.The report was given by Clerk Rex Roehl on behalf of a representative from CliftonLarsonAllen due to the COVID-19 Pandemic. He presented the City, Water, Sewer, TIF District #2, TIF District #3, Special Revenue Funds and Other Governmental Funds 2019 Annual Audit Reports regarding the auditors’ report and opinion. The City has $2.9 million in the General Funds with $1.9 million Unassigned Fund Balance, which is very good financial condition and very stable. The water utility shows a negative change in net position, $-36,883, and Sewer utility shows a positive change in net position, $51,578, with Rate of Returns being 0.26% for water and 1.15% for sewer. These were very close an over sight is needed to make sure the fluctuations are monitored and utility rates are updated and sufficient to cover increasing expenses and revenue changes. TIF Districts #2 and #3 were reviewes. TIF Districts are large upfront investments, $2.1 million and $1.8 million respectively, recovered in future tax increments from the individual TIF Districts. The Council needs to be aware that TIF #2 has a deficit of $449,702 with 13 years remaining, the district was extended by the granting of distressed status in February 2016 by the State of Wisconsin, with a dissolution date of 2032. TIF #2 should payoff early. TIF #3 has 7 years of remaining life with a deficit of $614,964 which may not break even unless more development occurs.
The risk disclosure on the City’s cash and investments were reviewed at years end. The majority, 99%, was FDIC insured or collateralized and the remaining 1% was at Unity Bank under the State Deposit Guarantee Fund, which is not considered to be insured or collateralized. They reviewed the City’s long term debt. The City’s statutory limit is $6.7 million with current borrowing of $1.6 million. With $5.1 million available, the City is in good financial shape. They also looked at GASB 68 and 71 statements regarding the City’s share of the Wisconsin Retirement Pension Plan. The General Fund Budget Comparison was reviewed, they reviewed the Compiled Schedule Reports of long-term debt, non-lapsing funds, insurance, water and sewer rates of return-regulatory basis. Finally, they reviewed the City’s internal control structure-lack of separation of duties, preparation of financial statements and audit adjustments. In conclusion the records are in very good working order, the staff was open and cooperative, the City had an overall good year, with good financial planning in place.
Feel free to contact us with questions and/or comments.