Green Park sees hike in net position in 2015

Green Park’s fiscal position improves compared to 2014

Green Park sees hike in net position in 2015

By Mike Anthony

The city of Green Park’s total net position increased by more than $455,000 during fiscal 2015, due to capital grants and charges for services and a decrease in street expenses.

An audit performed by Hochschild, Bloom & Co. for fiscal 2015, which ended Dec. 31, reported the city’s total net position — the difference between assets and liabilities — increased by $455,183, or 83.9 percent, compared to fiscal 2014.

Green Park ended 2015 with a total net position of $12,291,093, compared to 2014’s total net position of $11,835,910, according to Mike Williams of Hochschild, Bloom.

An increase in the net financial position compared to the previous year indicates the city’s financial position has improved, Williams said.

“The bottom line shows an improvement of $455,000 …,” he said.

The city’s total assets of $13,293,056 include cash and investments and capital assets, which increased by $427,325, or 3.3 percent, in 2015 compared to the previous year. During 2015, the city’s liabilities of $1,001,963 decreased by $27,858, or 2.7 percent, compared to 2014.

The city’s total revenues for 2015 were $1,845,829, an increase of $169,517, or 10.1 percent, from 2014’s $1,676,312.

The increase was primarily due to nearly $47,000 in additional sales-tax revenue compared to the previous year and capital grants totaling more than $78,000.

During 2015, the city’s expenses totaled $1,390,646, a decrease of $38,118, or 2.7 percent, from 2014’s total expenditures of $1,428,764.

“The city’s property-tax rates in 2015 remained at zero; the same as 2014,” the audit stated.

Green Park ended 2015 with a combined balance of $3,383,129 in its general and capital improvement funds, an increase of $512,424 compared to the prior year, according to the audit.

“The general fund balance increased by $126,804 due to revenues from lease income and licenses and permits and a decrease in capital costs,” the audit stated. “The capital projects fund increased by $385,620, mainly due to increases in sales tax and grant revenue.”

During 2015, general fund expenses to-taled $5,394 under budgeted expenditures of $1,159,200.

General fund revenues were $41 under the budgeted amount of $1,280,651.

Capital projects fund expenses during 2015 totaled $30,401, or 14 percent, under budgeted expenditures of $210,100.

Capital fund revenues were $17,630, or 3 percent, over the budgeted amount of $547,589.

Williams also noted the city’s long-term debt resulting from the 2014 purchase of the building that houses City Hall at 11100 Mueller Road.

“The purchase price was $1.39 million, of which $1 million was financed through a long-term debt agreement payable monthly through March 31, 2034, with an interest (rate) of 5 percent,” the audit stated.

Green Park began 2015 owing $977,735 on the City Hall building and ended the year owing $946,723 on it.

City Hall has been located in the building since the summer of 2004, first in Suites 2 and 3. In mid-2013, City Hall moved to Suites 5 and 6, nearly double the space.

Economic factors and 2016 budget and tax information the audit cited included:

• “The nationwide economic expansion has impacted the city’s growth to the extent that growth of general fund tax revenue has increased in comparison to prior years. The general fund sales tax saw an increase of 2 percent versus 2014. The capital projects fund capital improvement sales tax in-creased 9 percent from 2014.”

• “Minimal growth is estimated for the general fund sales tax and capital improvement sales tax in 2016. Interest earnings on idle monies were lower in 2015, earning an average of 0.2 percent. The city anticipates interest earnings to average 0.3 percent in 2016.”

• “The capital projects fund expenditures for 2016 are projected to be $250,000, which will primarily stem from city street repairs and replacements.”

• “The 2016 budget was prepared with property-tax rates remaining at zero.”

Since its incorporation in 1995, the city has never levied a municipal property tax.