Park Rapids audit shows healthier fund balance but higher expenditures
The Park Rapids City Council approved the 2011 audit report last week.
The report, compiled by Kern, DeWenter, and Viere, includes a financial analysis.
At the end of 2011, the city's governmental funds reported combined ending fund balances of $4,311,208. The fund balance in the general fund increased by $109,210 to $1,723,658 at the end of the year.
General fund expenditures for 2011 increased $176,085 over the budgeted amount for a total of $2,674,944.
The variances in the budget were due to a combination of circumstances, according to the audit report. Although expenditures were over budget, the city was the fiscal agent for a grant for Armory Square and $188,707 was received and reimbursed.
At the time of budget preparation, the auditors used the assumption given by the League of Minnesota Cities that the state would cut $240,982 from Local Government Aid. As it turned out, only $137,601 was cut, which saved $103,381.
Public safety and public works finished under their budgets but because of the tornado in early 2011, culture and recreation ended up over budget.
As far as long term debt, the city had a total bonded debt outstanding of $18,775,731. Of that amount, $13,870,000 was for general obligation improvement debt and $4,803,000 in revenue debt associated with the financing of the wastewater treatment plant at Lamb-Weston RDO. The city receives payments from RDO to pay off that debt.
In 2011, the bonded debt decreased by $3,494,000, which was due to a 2004 bond being paid off.
The city maintains an A+ rating from Standard and Poor's on its general obligation debt.