Kinder’s leaders learned its finances were affected by a virus and two hurricanes after receiving an overview of its audit for fiscal year ending June 30, 2020.
Royce T. Simemi, CPA from Oberlin, told council members the audit reported on the impact of the virus and two hurricanes as he referred them to page 36. “Management has evaluated subsequent events….” as he explained these uncontrollable items were affecting the previous and present budgets. “At this point, the extent to which COVID-19 may impact our financial condition or results of operations is uncertain.”
He reviewed bullets on page 4 indicating the town’s assets exceeded its liabilities by $10,242,200 (net position). The town’s governmental funds reported a total ending fund balance of $3,254,997 this year compared to the prior year ending fund balance of $3,513,234, which had a decrease of $258,237 for the current year and $27,995 for June 30,2019.
On page 6, Simemi noted the town had over $4.1 million in assets and $11.5 million in capital assets for a total of approximately $15.6 million. He added the present liabilities were $512,075, and long-term liabilities were about $5 million. With this information, the audit stated the town continues to maintain a high current ratio. He said the town reported positive balances in net position for both governmental and business-type activities.
“For the fiscal years ended June 30, 2020 and 2019, respectively, net position increased (decreased) by $22,591 and $695,487 for governmental activities and by ($165,030) and ($486,861) for business-type activities. The Town’s overall financial position deteriorated during the fiscal year ended in 2020,” was noted when discussing the town’s management of the budget on page 7.
In the area of business type activities, Simemi also noted the sewage fund had an operating loss of $98,191. The water fund gained $18,373, and the most profitable was gas at $153,338. He explained losses could be associated to deteriorating systems and said it would be a painful process to try to turn around the revenues in these types of funds while fighting to keep services, repairs, etc. for customers’ benefits.
Repayment of bonds and interests were discussed, because the town is presently looking into ways to lower interest. If the town finds an avenue it can pursue, this would help bring costs down.
Those wishing to learn more about the audit can view it at city hall. Simemi’s report noted there were no prior year findings. There was a five percent budget variance in the expenditures of the HUD fund that will cause the fund to be closely monitored in the future.
In other business, the council:
•Added an item to the agenda to seek sealed bids for two pavilions damaged at Veterans’ Park. They expect to award the bids at the next meeting.
•Agreed to pursue funding for digital meters through applications for LGAP (Local Government Assistance Program) and CWEF (Community Water Enrichment Fund) monies.
•Received a thank you from Councilwoman Latoya Tunwar for property cleanup mentioned at last month’s meeting.
•Heard compliments from Eric Kuyper, commander for the American Legion, for their assistance with the recent pancake breakfast.
