The City of Andalusia improved its net position, including its unrestricted funds, and reduced its long-term debt in 2018.
Missy Pierce and Gail Hayes of Rabren, Odom, Pierce and Hayes presented a draft of the city’s FYE 2018 audit to the city council Tuesday night.
Pierce, who gave the council an overview, said the city increased its net position to $26.79 million, an increase of $1.08 million over the previous year. It marked the fifth consecutive year in which the net position increased, she said.
What is even more remarkable, she said, is that the net position includes more than $4.8 million in unrestricted funds.
“I went online and checked surrounding towns and could not find any that compared,” Pierce said. “Most actually had a deficit in the unrestricted net position.”
The net position reflects what a government would have left over after satisfying its liabilities.
Other highlights of the audit, which had no findings, include:
• The city’s largest source of revenue, its sales and use tax, increased by $300,000 over the previous year.
• The city was able to draw from its reserves to provide the matching funds for the South Three Notch Street project and other smaller capital expenses, but also replenished the reserves adequately.
• Since the new sales tax was adopted in July of 2013, the city has transferred more than $6.1 million in new revenue to Andalusia City Schools for new academic programs and capital projects.
• The city decreased its long-term debt by $1.88 million in the 2018 fiscal year. In the current quadrennium, the city has reduced its long-term debt by $4.2 million.
• The debt retirement figures are absent the $7 million bond issue done in 2018 for the improvements of Andalusia High School’s auditorium and stadium. Andalusia City Schools fully funds the payment on that note.
“The city is in extremely sound financial condition,” Mayor Earl Johnson said. “This administration has worked very hard to reach its goals of lowering debt and improving the city’s financial position. The members of the city council and our department heads are to be congratulated for this work.”