Independent auditors say the village's financials for the previous fiscal year check out fine.
Plymouth based CPA firm Post, Smythe, Lutz and Ziel, delivered its report to the Village Council at a special work session Monday.
The primary goal of the audit was to ensure that the village's bookkeeping practices were accurate and followed generally acceptedl accounting principals.
In addition, it provided a clear, final retrospective picture of the village's financial performance over the last fiscal year.
"Our books are in really good order and we're just pleased that we meet all of the requirements that the state laid out for us," said Village Manager Donna Dettling.
The report covered the fiscal year ended June 30, 2007 for the village's municipal finances.
The village's fiscal year had previously ended on Feb. 28, until the council, with approval from the Michigan Department of Treasury, voted for the accounting change.
The audit did not look at the Downtown Development Authority or the Local Development Financing Authority for much of the analysis.
Those financial records were audited separately by other firms. Although, the opinions rendered by those firms were factored into Post, Smythe, Lutz and Ziel's analysis and were calculated into the findings.
The report highlighted a number of aspects of the village's previous fiscal year position.
Assets of the village exceeded liabilities by $15,226,226. Of that amount, $4,113,793 is unrestricted assets that can be used for projects or debt payment.
The audit also showed that the village's total net assets decreased by $160,600 compared to the previous fiscal year.
According to the report, increases or decreases in net assets may serve as a useful indicator of whether the financial position of (a municipality) is improving or deteriorating.
The village's fund balance at the close of the June 30, 2007 fiscal year was $3,583,586, with 81 percent of that amount, or $2,914,504 being unrestricted and available for spending at the village's discretion.
On the other hand, the total debt of the village increased by $1,135,264, or 13 percent, during that same period.
Taking the water and sewer expenses out of the picture, the village's expenses for general government, public safety, planning and zoning, public works, recreation and culture and interest on long-term debt total $3,024,393 after $935,874 in service charges, operating grants and capitol grants and contributions. The above utility services counted for $737,332 in expenses after service charges of $1,276,262 and $261,703 in grants and contributions.
The village saw $2,876,347 in collected property taxes, $363,714 in total state shared revenue and $53,815 in franchise fees. The village also received $189,421 on investment earnings from government activities and $117,828 in business side investment activities.
The report also gave an accounting of all of the village's debts.
The village, including the DDA and LDFA, owes $360,000 on 1998 Village of Dexter Bonds taken out on May 27, 1998. Payment is expected to continue until 2012 in $60,000 increments.
In 2002, the village issued General Obligation Unlimited Tax Refunding Bonds, which it currently owes $1,310,000 on. The principal will be paid off in 2017 at a rate of $110,000 per year.
Other debts include $1,700,000 in bonds issued on Nov. 16, 2006 for the new Department of Public Works building, which started its payment cycle May 1 last year and will be paid off in 2027, and several smaller bonds for the DDA and LDFA in amounts less than one million dollars.
Overall, the village is pleased with how it is managing projects, debt and fund balance.
"We've managed things where we're not in the danger zone with our finances," Dettling said. "My board is very aggressive to not end up like other communities with money problems."
Expanded
Web
Coverage
TOP JOBS
