WILLCOX — A presentation before the Willcox City Council via Zoom on Feb. 18 highlighted the success of the General Fund alongside a report of revenues surpassing city expenses across the board.
“The General Fund continues to report a healthy fund balance,” said Steve Palmer, CPA for Hinton Burdick CPAs and Advisors, who was hired by the city to conduct audits. “In 2020 the fund balance increased by $409,207. Keep in mind that fund balance represents equity based on a current fund measurement focus, i.e., capital assets and long-term debt are not considered. In fiscal year 2020 cash increased by $738,587.
“Cumulatively, over the past five years, revenues have exceeded expenditures by $613,152. Fiscal Year 2020 revenues exceeded expenditures by $409,207.
“Total net position (equity) was $23,590,278. Over time, increases or decreases in net position are indicators of whether the financial health of the city is improving or deteriorating. The city’s net position increased by $171, 311 for the year ending June 30, 2020.”
Areas where revenues exceeded expenditures were were broken down into the following categories: gas, water, sewer.
“In 2019 and 2020 the city had a positive turn with revenues exceeding expenses,” Palmer said. “In 2020 revenues have exceeded expenses by $9,612. Fiscal year 2020 expenses include $45,641 in depreciation expense and $125,000 paid to the General Fund for the Administrative Services. Cash has increased by $19,723 over the past five years. Cash increased $33,791 from the prior year.”
According to Palmer, regarding the water fund, “cumulatively, over the past five years, expenses have exceeded revenues by $371,234. Fiscal year 2020 expenses include $98,440 in depreciation expense and $145,000 paid to the General Fund for administrative services. In fiscal year 2020, expenses exceeded revenues by $29,380.”
Palmer said, “excluding the capital grants, the (sewer) fund reported a loss of $382,257. Fiscal year 2020 expenses include $305,798 in depreciation expense and $145,000 paid to the General Fund for Administrative Services; $83,531 of the cash balance at June 30, 2020, is unrestricted.
A fourth fund category, Refuse, “reported a net loss of $13,459. Fiscal year 2020 expenses include $145,000 paid to the General Fund for administrative services.”
“We have had some streets projects in FY20,” said Crystal Hadfield, Willcox city clerk. “Also, in FY20, we completed the new wastewater treatment plant. Overall, the city, despite COVID-19, is in a good position financially right now. We have made cuts where necessary and looked for additional funding for projects.”