Fruitland Park commissioners received good news Thursday night from their auditor – the city’s total net position increased $2.2 million in 2017.
The annual audit showed a general fund increase of $2 million, primarily due to an increase in permit revenue that largely can be attributed to new homes being built in The Villages. And the unassigned fund balance – money that is not restricted or committed – in the general fund is $471,116.
Actual revenues for the city were $576,000 more than budgeted projections, with actual expenditures coming in $1.6 million less than budgeted.
Some of the other highlights presented by McDirmit Davis and Co., an Orlando-based accounting and financial services firm that handled the audit, included:
- The total fund balance is 99 percent of general fund expenditures, and unassigned fund balance is 8.5 percent of expenditures.
- The Utility Fund net position increased $661,000, primarily due to increased operating revenues.
- Capital contributions increased $288,000.
The audit notes that the Utility Fund continued to have an operating loss as in prior years, and since impact fees and capital contributions are restricted, the city may consider raising water/sewer rates so that operating expenses are covered by operating revenue.
Commissioners accepted the audit and didn’t discuss or make any recommendations regarding the Utility Fund on Thursday night.
Commissioner Ray Lewis said he was upset that it took until near the end of June to see the results of the 2017 audit. He said he recommended McDirmit Davis and Co. to his fellow commissioners and was prepared to suggest the firm be “put on probation” to encourage a quicker turnaround time next year – an assurance he and other commissioners received.
Mayor Chris Cheshire said he was pleased with the results of the audit.
“Two thousand and seventeen shows us we’re in a positive light,” he said. “We had reserves left over.”
Cheshire added that some of the reserve money was spent in the aftermath of Hurricane Irma last September, but that money should be reimbursed by the Federal Emergency Management Agency.
“Once we get that it will go back into our reserves,” he said.
