Brewer audit reveals good financial news

Finance Director Karen Fussell and an auditor told city councilors on Tuesday that the city is in a good financial position and that a recent audit shows positive financial news.

The audit, completed by South Portland accounting firm Runyon, Kersteen and Ouellette “is a strong indicator of the city’s financial heath and our ability to better weather the ups and downs of the economy,” City Manager Steve Bost said on Wednesday.

The general fund’s cash and investments balance increased by approximately $1.2 million, and now hovers around $6.86 million, the audit documents state.

“We finished the fiscal year with a net addition of $1,066,799 to our general fund balance,” Fussell states in her March memo to councilors. “Both the city and school had higher revenues and lower expenditures than budgeted.”

In addition, the undesignated fund balance, “a key indicator of the overall fiscal health of the city,” increased by $586,348 over the last year, and now is approximately $4.58 million, Fussell stated.

“It’s a very good audit,” Bost said.

In addition to a favorable rating when borrowing money or bonds, the audit also “allows us to look at the budget, and know we’re not going to go through the peaks and valleys” other communities may face in this slumping economy, Bost said. “The financial framework of the city is very solid.”

Bost gave accolades to Fussell, who takes a conservative approach to the budget and budget projections, and other department heads for their work to keep budgets tight.

A portion of a copyright article from the Bangor Daily News, Wednesday, March 4, 2009 by Nok-Noi Ricker.