August 06, 2014 - The city of Green Park's total net position increased by more than $742,000 in fiscal 2013, primarily due to infrastructure improvements.
An audit performed by Hochschild, Bloom & Co. for fiscal 2013, which ended Dec. 31, reported the city's total net position — the difference between assets and liabilities — increased by $742,097, or 6.8 percent.
The city ended 2013 with a total net position of $11,588,362, compared to $10,846,265 in fiscal 2012, according to Mike Williams of Hochschild, Bloom.
The city's total assets include cash and investments and capital assets, which increased by $517,377, or 4.7 percent, in 2013 compared to the previous year.
"... The big part of that is the capital assets. So that's the infrastructure assets that you're working on — the Green Park Road project, the bridge project that's all done," Williams said. "Those are the final increases to the capital assets for that."
Green Park completed the reconstruction of a roughly 6,000-foot stretch of Green Park Road from Tesson Ferry Road to Lin Valle Drive in 2012. In 2011, work was completed on a new bridge over Gravois Creek on Green Park Road. Eighty percent of both projects were funded through federal grants.
During 2013, the city's liabilities decreased by $224,720, or 86.5 percent, primarily in escrow deposits.
"So overall, the city's net position is still a positive $11,588,00. So that's a big number, but it's cash and then we capitalize the cost of all the roads and improvements, things like that, and all the equipment, and that's around $8.2 million," he said.
During 2013, the city received total revenues of $1,945,957, down from the $3,091,253 the previous year, primarily a result of grant revenue the city received for road and bridge projects.
Expenditures totaled $1,203,860 during 2013, up $174,846 from 2012.
"The city's property-tax rates in 2013 remained at zero; the same as 2012," the audit stated. "Sales taxes collected remained flat in 2013 due to no improvement in local and national economic conditions."
Green Park ended 2013 with a combined balance of $3,384,887 in its general and capital-improvement funds, according to the audit. The city began the year with a combined fund balance of $2,971,477.
The unassigned fund balance for the general fund totaled $3,000,075, or 226 percent of general-fund expenditures, according to the audit.
"Total fund balances for all government funds increased by $413,410," the audit stated. "The general fund balance (increased) by $102,887, including new amounts for recognizing escrows and allocating part of the street project costs.
"The capital projects fund increased by $310,523, mainly due to a decrease in expenditures for street projects. While the capital projects fund shows a negative unassigned balance of $105,904, the city anticipates future revenue to improve the amount."
During 2013, general-fund expenditures totaled $37,615, or 3 percent, over budgeted expenditures of $1,291,130.
General-fund revenues were $330,493, or 30 percent, over the budgeted amount of $1,101,140.
"Overall, general fund revenues are above the 2012 total by $305,730, mainly due to grant and escrow revenue," the audit stated.
For the capital projects fund, expenditures in 2013 were $73,802, or 57 percent, over budgeted expenditures of $130,000, primarily due to fluctuations in grant project costs. Capital-projects revenues were $104,325, or 25 percent, over the budgeted amount of $410,000, primarily due to grant revenue.
Williams also noted the city voted earlier this year to purchase the building that houses its 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," the audit stated.
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 amount of space.
Economic factors and 2014 budget and tax information the audit cited include:
• "The nationwide economic recession has impacted the city's operations to the extent that growth of general fund tax revenue has slowed in comparison to prior years. Sales taxes total 30 percent of the city's revenue. The general fund sales tax saw an increase of 1.3 percent versus 2012. The capital projects fund capital-improvement sales tax decreased 0.7 percent from 2012."
• "No growth is estimated for general-fund sales tax or capital-improvement sales tax in 2014. Interest earnings on idle monies were lower in 2013, earning an average of 0.4 percent. The city anticipates interest earnings to average 0.4 percent in 2014."
• "The capital projects fund expenditures for 2014 are projected to be $400,000, which will primarily stem from the city road and bridge projects to be partially funded from grants."
• "The 2014 budget was prepared with property-tax rates remaining at zero."
Since its incorporation in 1995, the city has never levied a municipal property tax.