Accountant says City is “doing well”
June 25th, 2009“Your cash reserves out there are really good.” That was the report from Tom Olinger, who recently completed an audit of the 2008 City of Gaylord and Gaylord EDA audit. Other than some reorganizing to keep the city’s check and balances in place, the city books look good, he reported.
Olinger suggests looking at water rate increase to keep current with operating and debt repayment costs.
Similarly, he suggested raising sewer/utility rates as the city is collecting less than what it owes.
The city does need to decide how to fund the emergency services building and city hall conversion costs. That money can come from the general fund.
“Taxes are below average compared to cities your size,” Olinger noted.
The city has $2.7 million in proceeds from the sale of the nursing home.
City Administrator, Kevin McCann asked if Olinger had suggestion for where to put the money from the sale of the nursing home. Olinger suggested putting it into a capital improvement plan.
“I think it would be good of the city to use it (the nursing home money) for a pool fund,” Mayor Doug Quast stated. Quast also asked where the money set aside for the pool house is.
McCann stated that $127,000 designated funds for the pool house are in the general fund.
Gaylord’s General Fund is 70 percent of next year’s budget. The state wants cities to be at 40 to 50 percent, so Gaylord is doing well, according to Olinger.
It is difficult to predict how the general fund will look next year because of Governor Tim Pawlenty’s cuts to Local Government Aid. Said Olinger, “Everybody’s general fund is probably going to be struggling.”
