The financial health of Gaylord is pretty stable according to City Administrator Kevin McCann. During the June 16 city council meeting, the council reviewed and approved the 2009 City of Gaylord and Gaylord EDA audit. Tom Olinger from Abdo, Eick, and Meyers presented the report.
One of the strong points of the audit, according to McCann, consisted of an increase in the city’s fund balance by $209,328 to $1,150,632. The fund balance was previously $941,304 in 2008. The Gaylord General Fund was 89.4 percent of the year’s budget, which is much greater than the 40 percent to 50 percent recommended by the state. In the 2008 audit, the general fund was 70 percent of the budget.
The capital improvement plan has just over $1.1 million for capital projects. Taxes have increased slightly to $409 per capita from the $385 mentioned in the 2008 audit. Olinger did not have any averages for peer communities for 2009.
While there are the positives, local government aid has become even worse, meaning less money for cities to spend on projects. According to McCann, there needs to be more justification for spending money on projects or items needed to improve the city. The state currently faces a deficit of about $5 billion, which will further impact future local government aid payments.
Some projects holding negative balances include the City Hall project, ambulance/police project, and the 2006 street project. McCann stated that the council could transfer surplus funds from the 2008 project or funds from the capital improvement plan.
By Kelsey Schultz