The auditor’s opinion was “fair” for the city’s overall financial statements.
The audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the city’s basic financial statements. The government-wide financial statements are designed to provide a broad overview of the city’s finances, in a manner similar to a private-sector business.
Financial highlights of the audit included:
• The ending cash and investments, unrestricted and restricted, for Governmental Funds (General Fund, Municipal Road Aid, and CDBG Grants) was $687,574 down from $871,183 at June 30, 2007, for Proprietary Funds (Water/Sewer and Carpenter Center) was $2,636,266 up from $1,761,446 the previous year end, and for the Fiduciary Fund (deGraffenried) was $935,184 up from $930,525 the previous year end.
• The City’s General Fund operating revenues for the fiscal year ended June 30, 2008 were $4,805,247, up from $4,747,588 the previous fiscal year. Net assets at year ended June 30, 2008 were $4,209,308, down from $4,289,232 at the previous year end.
• Tax revenue increased 9 percent, to $1,255,153 and license revenue decreased 2.9 percent to $3,204,980.
• Fire protection cost in fiscal year 2008 was $91.32 for each of the approximately 7,900 residents verses $97.02 in fiscal year 2007, due to the payoff of the 2004 fire truck. The 2008 Pierce fire truck replaced the 2004 fire truck in May 2008, but payments on the new truck start in fiscal year 2009.
• The police department upgraded equipment and provided training as they work to maintain accreditation certification given by the Kentucky Association of Chiefs of Police. Police protection for the residents of the City of Russellville was approximately $205.51 per resident this year, and was $237.51 per resident for the previous year.
• The old hospital building was purchased at a price of $150,000. AU Associates will convert the building to low income housing in 2009.
• Street paving and sidewalk construction costs were $287,411.
• Water and Sewer Operations generated operating revenues of $4,369,173 for the year ended June 30, 2008, up from $3,812,596 for the previous year. Net assets at year ended June 30, 2008 were $5,548,139 up from $3,188,729 at the previous year end, due to Rockwell Environmental Funds.
• Rockwell Environmental Funds of $1,625,000 was received in August 2007 for construction and upgrading the sewer system for the Johnson Street area, and for construction of a new Water Tower System on the east side of Russellville.
• The State of Kentucky provided Spa Lake Dam grant funds of $100,000.
• The Manshart Sewer Line Project was started in May 2007 with KIA grant of $200,000 and had a total cost of $605,823, when completed in October 2007.
The financial outlook for the city according to the audit is as follows:
• The City’s General Fund is in a short term financial strain due to annual cost increases for retirement benefits and fuel costs.
• When looking forward, the funding for capital assets replacement will be another problem, i.e. expensive fire trucks. The city has not saved the necessary funds; therefore, new debt will be required, and repayment will be a strain.
• The city obtained $1,500,000 from State/Rockwell Environmental Funds to create a large park complex within the city. The grant revenue and expenses will be reflected in fiscal year 2009.
• The city’s Water & Sewer operations have received Rockwell Environmental Funds in the amount of $1,625,000. These funds were received August 1, 2007. The funds will finance the Hospital Hill Water Tank Project and the Johnson Street Sewer Line Project. Phase 1 of the Johnson Street Project has been completed.
If you have any questions about the audit you can contact the mayor or city clerk at 270-726-5007.
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