CITY IMPROVES FINANCIAL POSITION FOR 10TH CONSECUTIVE YEAR
The City of Andalusia increased its net position for the 10th consecutive year, the city’s audit for the fiscal year ending in 2024 showed.
Missy Pierce, CPA, and Gail Hayes, CPA, from Rabren, Odom, Pierce and Hayes, P.C. presented a draft of the city’s audited financials for fiscal year 2024 to the Andalusia City Council last week. The auditors reported no findings.
“This is the best report we can give,” Pierce said.
Pierce said the City of Andalusia increased its net position, which was $45,618,516 at September 30, 2024, by $493,516, as compared to FY 2023.
“In the non-government world, that would be called retained earnings,” she said, adding that it includes monies set aside for education and bond payments, and monies that are restricted for use for street paving and the courts.
Other highlights of the audit included:
• The City’s income generated from taxes, program revenues, and transfers in was $27,281,737. This is an increase of approximately $1,587,725 over the prior year.
• The City’s largest single source of revenue, sales and use tax, increased approximately $194,587 from the prior year, resulting in revenues of $12,226,108 for fiscal year ended September 30, 2024.
• The City reduced its long-term debt by $2.6 million in FY 2024.
Long-term debt on September 30, 2024 was $46,172,462. This includes:
-- Andalusia City Schools’ 2018 Bonds, $6,045,000, and 2019 Bonds, $5,020,000;
--South Alabama Regional Airport Authority’s 2016B Bonds, $3,125,237; and
--The Industrial Development Board’s 2019A Revenue Bonds, $4,635,000.
The remaining debt of $27,347,225 is the city's general obligation bonds and note payables.
• The City’s governmental activities debt to income ratio for the year was approximately 16.7%. Pierce said this is a very healthy percentage, adding that 50 percent or higher is cause for concern, and 30 percent or lower is considered healthy.
• The City reported capital outlays of $6,587,994. These projects included:
-The Andalusia High School Sidewalk project;
-City-wide street paving
-Prestwood Building 1st floor renovation;
-Police, street and maintenance department vehicles; and
-New land fill cell addition.
The City also had several projects in progress at September 30, 2024
Pierce said the auditors’ report is “unmodified,” which is the best that can be given.
Pierce explained to the council that the auditors’ work is detailed.
“We come in and spend a week going through all kinds of records that we request,” she said. “Then we go back to the office and spend several more weeks going through them to put together the evidence we need to support the document presented here today.”
“The city continues to improve its strong financial position,” Mayor Earl Johnson said. “This is great news for the city, and it is because of the guidance of the council and the contributions of everyone who works for the city.”
John Thompson, city administrator, said the audit reflects a months-long process.
“They really dig into every aspect of the city’s finances,” he said.
The council is expected to officially adopt the financial statement at its next meeting, set for August 4.