The onset of summer has once again brought the annual audit before Isle City Council. At their regular meeting on Tuesday, June 11, the council received their audit report. While this unmodified opinion indicated that the city was overall in a good position, a second consecutive year of losses to the general fund did have the auditor advising the city to be attentive with their annual budgets moving forward.

2019 audit report

Carl Nordquist, with Althoff and Nordquist, LLC, provided the presentation on this year’s audit report. Nordquist began by stating that the audit had no

 finding or issues that needed reporting to the state. The report itself gives an “unmodified opinion on the regulatory basis of accounting.”

Has he worked the whole of the city’s various funds, Nordquist noted that fire department construction fund showed a negative balance of $243,949. He advised that a transfer be made from the city’s fire fund this year to cover the negative balance. “As I understand it,” he said, “There won’t be any more transactions coming out of Fund 425 [the fire construction fund], and it’s directly tied to the Fund 225 [the fire fund].”

While he felt the city was in good shape presently. Nordquist expressed concern about the city’s general fund. He noted that fund had shown a decrease for two consecutive years now. “It is something where you need to take a good, long look at the budget, what you are doing, how you’re doing it, and whether or not you need to make changes to your budgeting process.”

Disbursements from the general fund for 2018 had totaled $1,153,475. The cash fund balance had started 2018 at $335,160 and saw a net decrease in the fund balance of $141,045, ending at $194,115. If the decrease proved a continuing trend, Nordquist said the general find could be in a tough spot.

Nordquist noted that there had been a number of large payments the city had needed to make in the past year, which accounted for some of the loses. When contacted after the meeting, Hubbell clarified these payments included the final payment on the Malone Island bridge project as well as roadwork around the city.

Speaking on the water, sewer and liquor funds, Nordquist said all three had seen a profit. In particular, he noted that the liquor fund, saying it had shown “a slight profit, after miscellaneous expenses.” He added it was also worth keeping an eye on, as if it had shown a loss for two consecutive years, a public hearing on its continued operation would be necessary.

Throughout the auditing process, Nordquist noted that city clerk Jamie Hubbell had been able to provide any help they needed

Nordquist ended his report saying once more that he felt the city was in good shape. However, he did emphasize paying attention to the general fund. He believed that it would take several years for the fund to get back to where the city would like it to be.

Briefs

• Municipal liquor manager Monica Weets and Hubbell both indicated that the Muni had a “phenomenal” month of profits in May. 

• Hubbell indicated that the city’s comprehensive plan was nearing its final stages. A public open house would be held to provide one last opportunity for input before the plan was finalized. While it was possible this open house would occur along side July’s planning and zoning meeting, but as of press time, the date was tentative.

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