City audit for ’17-’18 looks better

Major cutbacks – including layoffs of approximately 20 employees – began showing up big-time on the City of Clinton’s financial books in 2017 and ’18, an audit for the last half of ’17 and the first half of ’18 shows.
The audit, running from July 1, 2017, through June 30, 2018, was presented Tuesday night to the City Council.
Unfortunately, the smallest crowd in a long time was present to hear the good news. About 18 people were in the audience, but 11 of them were firemen, including some from neighboring towns. There also were three other city employees, a couple of spouses, and a couple of media people present.
Spokesman James Kuykendall began by saying one of the first questions usually asked when he presents an audit is, “Are we in better shape than last year?” This year, he said the answer is “Yes, we are.”
Specifically, he said total assets are up nearly $4.2 million from the previous year and liabilities are down over $565,000. The figures were supplied by City Treasurer Debra Blanchard and confirmed by Kuykendall and his accounting firm of Britton, Kuykendall & Miller based in Weatherford.
The City’s assets exceeded its liabilities by just under $62 million compared to $58 million the previous year.
Kuykendall pointed out that the City had $7.9 million available to cover its $2.7 million in debt, for a 2.9 computed average. Required coverage is 1.25, he said.
“This increase in our cash position is due to the efforts of department heads and their staffs,” said City Manager Mark Skiles. “It doesn’t just happen. I’m not going to take credit for it; the staffs are the ones that deserve the credit.”
In a written commentary accompanying the audit, Ms. Blanchard – the city treasurer – stated in part: “The 2017-2018 sales tax revenues have increased such that the General Fund cash reserves will increase by more than $400,000.” However, she also sounded this note of caution: “City staffing levels are down approximately 20 positions which is why things that have been done in the past aren’t being done. While some things are being accomplished through community involvement, some things will not be done without employee involvement. Department heads have realigned staff and redistributed responsibilities to minimize the impact. . . . The City will continue to work to increase sales tax generation, streamline operations, modify processes, and redefine how we do what we do. This will prove to be critical to continue the current level of City services and to achieve the long-term goals and economic vitality of the Clinton community.”    
Even so, she pointed out that City employees last received a cost-of-living increase on July 1, 2013, so the 2018-19 budget includes salary hikes of 2 percent for department heads and 4 percent for other personnel.
Kuykendall told the council: “Overall the City has done well this year. You’ve increased your assets substantially.”
He also said the City has met all the requirements of budget laws and added, “You’re current on all your debt payments, plus your sales tax, use tax and franchise tax are all up, and there’s been a decrease in overall expenses.”
Colorful pie charts showed that just over two-thirds of revenue used to pay the City’s bills came from sales taxes. Other taxes produced about 16 percent and charges for services 12 percent.