Crestwood’s assets increased during fiscal 2011 while its liabilities decreased, according to an independent audit of the city’s finances.

Total revenues in all governmental funds exceeded expenditures by $731,239 during fiscal 2011, and the city’s governmental funds had a combined balance totaling $7,075,411 as of Dec. 31.

The Board of Aldermen recently voted 7-0 to accept into the record the audit performed by Botz, Deal & Co. Ward 3 Alderman Paul Duchild was absent from the June 12 meeting.

The city received an unqualified opinion for its fiscal 2011 audit, Allen Schulte of Botz, Deal & Co. told the Board of Aldermen June 12.

“That’s what you’re looking for, and basically all that says is that everything is fairly stated,” he said.

During fiscal 2011, the city’s net assets exceeded its liabilities by $19,324,987.

The city’s net assets increased during fiscal 2011 by $1,578,003 compared to the previous year, while Crestwood’s long-term liabilities decreased by $893,278.

For fiscal 2011, total city revenues decreased by $178,708 — 1.5 percent — to $11,722,369 from $11,901,077 the previous fiscal year.

“This is primarily due to a decrease in property-tax revenue during 2011 of approximately $98,000 and a decrease in investment income of approximately $68,000,” the audit stated.

For fiscal 2010, total city revenues decreased by $796,657 — 6.3 percent — to $11,901,077 from $12,697,734 the previous fiscal year.

The city’s total expenses during fiscal 2011 decreased to $10,144,366 compared to $11,211,556 during fiscal 2010.

“The expense item having the most significant effect on the decrease of expenses was the city cutting a large amount of non-essential repairs,” according to the audit. “The remainder of the decrease was attributable to a reduction in staff.”

Total fiscal 2011 revenues in the city’s governmental funds decreased by 1.7 percent — $197,791.

“A majority of the decrease is due to a decrease in property tax and investment earnings of approximately $65,000 and $68,000, respectively,” the audit stated.

In the general fund, revenues exceeded expenditures in fiscal 2011 by $617,698, while expenditures decreased $671,107 in 2011 compared to the previous year.

About half of this was attributable to a decrease in debt-service expenditures of $311,031 relating to the city’s “annual appropriation note,” which was retired March 1, 2010.

“The remainder of the decrease was attributable to a reduction in staff,” the audit stated.

For fiscal 2011, actual revenues in the general fund totaled $8,207,811 — $19,861 more than the budgeted amount of $8,187,950.

“The $19,861 positive variance was primarily due to higher sales-tax receipts,” according to the audit.

Actual expenditures in the general fund during fiscal 2011 were $7,590,113 — $510,902 less than the budgeted amount of $8,101,015.

“This was due primarily to timing of filling staff vacancies, employees opting out of the health-insurance plan and a decrease in the workers’ compensation premium,” the audit stated.

The report also stated, “The city, like many surrounding municipalities, has experienced the impact of a declining economy. For fiscal year 2012, revenues will be conservatively estimated at an amount less than 2011.

“The city also plans to reduce expenditures, (departmentwide), to account for the decline in budgeted revenues,” according to the audit. “Unfortunately, this may result in further deference of maintenance to city infrastructure and alterations to the city’s five-year plan.

“The city will continue to focus on building fund balances, reducing debt and providing a quality level of service to the citizens of the city …,” the audit stated.