Fairhope, Alabama
Update: The audit is posted online from the city's website under Departments, Finance.
YEAR ENDING SEPT. 30, 2016
Lee Ann May, a CPA from the accounting firm of Hartman, Blackmon and Kilgore presented the annual financial audit to the city council for fiscal year 2016 (October 1, 2015 -- September 30, 2016) -- giving the city an overall "unmodified opinion, the highest opinion we can give."
Highlights included:
* $8.3 million in net income
* $4.5 million in debt retired: two million of that "excess debt" over that regularly scheduled.
* Total liabilities were reduced by $3 million.
Also, $2.5 million of new capital assets were purchased for the utilities -- and $8 million for general government.
May: "That's all great ... you are re-investing in the utilities and city. ... had a very successful year ... congratulations for that."
BIG HEALTH BENEFIT LIABILITY LOOMING THOUGH
She added that all municipalities are facing a federal government mandate for addressing so-called 'Other Post Employment Benefits' (OPEB): health insurance for retirees not yet eligible for Medicare.
Fairhope's is currently $8.4 million: "You may want to start paying that down (next year)."
OTHER INTERESTING FACTS
The city's population was 18,730 and per capita income $36,155.
Total revenue was $64.8 million and expenses $56.4 million.
Property tax revenue was $4.2 million.
Sales tax revenue was $7.4 million.
Lodging tax revenue was $696.4K.
Beer, wine, liquor tax revenue was $482.7K.
Total debt was $26.6 million (15.4% of the legal limit).
The city's credit rating was AA+.
Income from utilities was $7.1 million and $2.9 million of that was transfered to the city's general fund.
Property and sales tax revenue was up $985K over the previous year.
Building permits were up 23%.
The airport's long term debt was $7.1 million, its income $304K and expenses $644K.
The airport (authority) received $428K from the city.
The library (board) received $806K from the city and revenue of $18.1K from fines; $46.1K donations; $14K state aid; and $17.3K from misc. other sources.
Library salaries totaled $505K.
There were 6,767 electric customers; 10,346 natural gas and 17,910 water/sewer.
School enrollment was 5,333 (up 5.3% over 2015)
There were 288 full time city employees, the same as in 2015.
Total pension liability was $38.3 million.
Update: The audit is posted online from the city's website under Departments, Finance.
 |
| CPA Rachel Godwin at left |
YEAR ENDING SEPT. 30, 2016
Lee Ann May, a CPA from the accounting firm of Hartman, Blackmon and Kilgore presented the annual financial audit to the city council for fiscal year 2016 (October 1, 2015 -- September 30, 2016) -- giving the city an overall "unmodified opinion, the highest opinion we can give."
Highlights included:
* $8.3 million in net income
* $4.5 million in debt retired: two million of that "excess debt" over that regularly scheduled.
* Total liabilities were reduced by $3 million.
Also, $2.5 million of new capital assets were purchased for the utilities -- and $8 million for general government.
May: "That's all great ... you are re-investing in the utilities and city. ... had a very successful year ... congratulations for that."
BIG HEALTH BENEFIT LIABILITY LOOMING THOUGH
She added that all municipalities are facing a federal government mandate for addressing so-called 'Other Post Employment Benefits' (OPEB): health insurance for retirees not yet eligible for Medicare.
Fairhope's is currently $8.4 million: "You may want to start paying that down (next year)."
OTHER INTERESTING FACTS
The city's population was 18,730 and per capita income $36,155.
Total revenue was $64.8 million and expenses $56.4 million.
Property tax revenue was $4.2 million.
Sales tax revenue was $7.4 million.
Lodging tax revenue was $696.4K.
Beer, wine, liquor tax revenue was $482.7K.
Total debt was $26.6 million (15.4% of the legal limit).
The city's credit rating was AA+.
Income from utilities was $7.1 million and $2.9 million of that was transfered to the city's general fund.
Property and sales tax revenue was up $985K over the previous year.
Building permits were up 23%.
The airport's long term debt was $7.1 million, its income $304K and expenses $644K.
The airport (authority) received $428K from the city.
The library (board) received $806K from the city and revenue of $18.1K from fines; $46.1K donations; $14K state aid; and $17.3K from misc. other sources.
Library salaries totaled $505K.
There were 6,767 electric customers; 10,346 natural gas and 17,910 water/sewer.
School enrollment was 5,333 (up 5.3% over 2015)
There were 288 full time city employees, the same as in 2015.
Total pension liability was $38.3 million.
Comments
It will be very interesting to see how the city does this fiscal year. Oh wait, if the city does not as well it will be Jack's fault.
If you examine the reports closely, a lot of the money the city took in was fees from builders, but wait, the builders are all crooks and are killing Fairhope.
No, everything is Jack's fault, the outside accounts must have lied about the financial statements! Yeah, it's they are in with Jack and these statements are all lies!
Please....
The only thing to do is change to the council/city manager form of government and eliminate the mayor altogether. The sooner the better!
Other see it as Socialism.
I think that someone is very worried about what other facts may turn up if she keeps digging. I am totally in favor of putting all of the facts out there.
I wonder how "Mayor Wilson" would interpret this audit? Does it
need some "SPIN" on it ????
The airport's long term debt was $7.1 million, its income $304K and expenses $644K. - ???? No one thinks this is strange or a poor business model???
The airport (authority) received $489.9K from the city. - ???? For what?
Library salaries totaled $505K. ???? Those are some highly paid librarians.
Would appreciate the city pursing an audit firm outside of the city.
My thoughts on the sewer system, if the city can't furnish the sewer then allow another outside entity to furnish the sewer.
Just about all cities have unfunded deferred pensions and insurance, this not usual or unique to Fairhope. Taking funding from area of government to pay for another is not usual, this is common practice for cities and corporations alike.
What needs to be clear to everyone is the revenue to Fairhope, the top tax revenue is Walmart, and then income from builders fees.
Fairhope needs to come to realize that once, or if growth stops, then this town will not have a library, the tennis courts, the marina, the city will not be able to afford the flowers, et cetera, etc.
The mayor's firing and hiring have politicized many of the cities employment positions, once this occurs then many individuals will not want to work for the city. Just think about this, you leave a good job to come work in Fairhope government, then in 4 years and you're out of a job.
Or why would anyone want to work their way up to become management or a director of a division if you are most likely to be fired by the incoming new mayor.
Remember, Unitization is created by bad management, the worse the management the stronger the union, the better the management then the weaker the union. Unions are created because workers fear for their jobs due to politicizing the hiring and firing of employees!
Mayor Wilson has created some issues that many just come back to haunt this city.
As we understand it though, a major consideration is that the treatment plant is "landlocked," no further expansion is possible: An entirely new plant will be necessary someday, located elsewhere; it may not be possible to use all of the existing collection system ... .
They sure are, considering that their Board of Trustees doesn't care enough about the well-being of their staff members. I think it's high time the City of Fairhope replaced the current library board. The elder board chairman has been there LONG ENOUGH!
Mayor Wilson should also consider bringing the library under rule of the city. Make things equal across the board!
Overall the city's assets and deferred outflows exceeded liabilities and deferred inflows by $143,834,561.00 which resulted in an increase in the adjusted net position totaling $8,352,598.00. This budget and audit are for the previous fiscal year ending September 30, 2016.
I concur with a previous comment that "An audit is not a policy document other than reviewing how well the city is managing its money to conform to acceptable accounting practices. Any city that is paying its bills and has money in the bank could be informed by their auditor that they had a good year. No one has cooked the books or run away with funds. That certainly is good news. The auditor also raised a concern about the need for the city to plan for a new health liability. That, too, is in keeping with an audit. Otherwise, policies, whether prompted by the mayor or members of the council, are irrelevant to the auditor unless it compromises the city's financial structure or integrity. Clearly from the comments there are differences of opinion about how revenue is raised and how money is spent. These would be good comments to make at a future council meeting when a specific proposal is being considered."
Maybe to close.
The Library attendance figures are based on an automatic door counter. I just walked through the entire library and there are 118 patrons in the library at 10:34 am on a Tuesday morning.
I have worked at the library for 8 years, and can say with confidence that there are no staff members who are related to a board member.
I have been involved in the hiring process for several library employees. There is no political patronage, no favoritism, no nepotism-it is not a good ole boy private club.
Again, what is the benefit by bringing the Library "under the rule of the city?"
The appropriation from the city pays not only for salaries but also books, magazines, databases, public access computers, wifi, speakers, classes, materials, newspapers, licensing fees, software, printers, copiers, digital platforms and materials, DVDs, ebooks, outreach, janitorial services, projection equipment, furniture, shelving, educational materials, an annual audit, and so much more....
Fundraising monies from 501c organizations related to the library are used to fund our Summer Reading program and for required grant matching payments.
My concern is not with "more oversite" from the city. As a public institution, the city and it's citizen already have "oversite" of the library. My fear is that the self determination that allows us to be responsive to the community, and the autonomy of the library to serve the public interest could be lost under bureaucracy and political agenda should the library "come under the rule of the city." Again, please provide the benefits you envision from such a takeover.
I would like to invite you to visit the Fairhope Library to learn more about the library and the resources we have available to the Faithope community.
And yes those of us with real jobs are rushed and very often misspell something but I'd rather be a little stupid in someones mind than rude name calling.
Library $409,102(cash)
$78,780(capital asset)
total asset $487,882
Airport $330,184 (cash)
145,209 (grants)
$12,418,106 (land & construction)
$14,511,227(capital asset)
total asset $27,404,726
Maybe airport not so bad, looks like mayor/council needs to look at this.