Audit report: city of Brownton built up cash balance between 2015-16

The city of Brownton’s general fund cash balance improved by nearly $70,000, according to an audit report presented at the May 2 City Council meeting.
Paul Harvego of Conway, Deuth & Schmiesing (CDS), said the city ended 2016 with a cash balance of $310,782. It ended its 2015 year with a cash balance of $243,537. Harvego said the difference was primarily because the city had fewer capital equipment expenditures in 2016 than 2015.
“You were down $92,000 in expenditures, most in capital expenditures,” said Harvego.
Harvego said the natural gas fund had finally built enough of a history to determine how well it was doing, after completing three full heating seasons.
Although the natural gas fund had a profit, Harvego said it wasn’t enough to start building a reserve fund for future equipment purchases to replace infrastructure.
It was noted that the franchise was new, and that the city hoped to have the bond paid off before it started having to pay significant maintenance costs.
City Clerk Ella Kruse also pointed out that two consecutive mild winters had an impact on the revenues as well.
Harvego also reported that rate increases in the water and sewer utilities had a positive impact, more so for the water fund than the sewer fund. He said the city may need to consider another rate adjustment for the sewer fund.
 

See the full story in the May 10 edition of The McLeod County Chronicle.