I will try to reformat and post the draft calendar year 2008 audit and financial reports and management letters this week just recently presented by the independent city auditorsí Abdo, Eick and Meyers and published annually in the Henderson Independent.
At the end of calendar year 2008 the city had positive cash and fund balances (in the black) in the general, special revenue and debt service funds (tax levy associated funds). There were negative fund balances (in the red) in enterprise funds (water, sewer, refuse and recycling-funds where expenses are paid for through user fees/charges) as discussed in the utility letters distributed last month. Exact end of year 2009 fund and cash balances in the general, special revenue and debt funds will depend on 2009 tax collections, how much the state actually cuts (there are currently at least 3 different proposals out there) and how much the city cuts (about 6 meetings this month to go over 2009 recommendations) but it will be in the black. End of the year 2009 balances in the enterprise funds will depend on how collections go this year, what Henderson's share of the O & M costs for the new treatment plant end up being and how the city council decides to collect the funds to make payments on Henderson's share of the debt for the new treatment plant and collection system to the Minnesota Public Facilities Authority.
Todd Hagen from Ehlers and Associations (the city's financial advisors) is scheduled to be at the April 8 meeting (about 7 PM, also live on Mediacom channel 8) to present and discuss current and future financing alternatives and programs.
The City of Henderson's fiscal year is a calendar year and it receives most of its money (about 75% or almost $1,000,000.00) from taxes and state aids in June, July and December of each year. It does not have $750,000,000 (about 75% of the city's bills are due between January and June) in reserves at the end of the calendar year to pay bills from January-June of each year out of cash reserves so it does temporary borrowing through the tax anticipation certificate process and then pays off this short term debt with the taxes, special assessments and state aids collected later in the year.
I am available at the city offices to provide details and reports relating to any of the above information and I can email some things upon request (some of the files are over 100 pages so you need an email account with sufficient memory).
Edited by Lon Berberich (04/05/09 04:29 PM)