Annual report says Largo financially strong
By THOMAS MICHALSKI
Article published on Wednesday, March 26, 2008  |
 |
![[Image]](/content_images/032608_lle-01.jpg) |
| Photo by THOMAS MICHALSKI |
| Valiente Hernandez, left, a Tampa accountant, and Kimball R. Adams, city financial director, presents the annual financial report. |
|
LARGO – The city’s Comprehensive Annual Financial Report, unveiled at a March 25 City Commissioners workshop meeting, showed that local government finances are strong, and the city is bracing for whatever turbulence will result due to state-mandated tax reform.
The 148-page report for the fiscal year ending last September was outlined by Kimball R. Adams, city financial director, who said municipal employee positions are safe even in light of recent cuts and other austerity measures announced by other Pinellas County cities.
The city’s money intake, however, showed little or no growth in some areas.
An independent audit of the city’s financial structure as mandated by state law and the city charter shows, despite revenue loss and reductions in property taxes, the city remains in sound financial condition.
The audit was conducted by Valiente Hernandez and members of his Tampa accounting firm with input from a panel of city officials. Both Adams and Hernandez agreed that most revenues met budgetary expectations and all department expenses and expenditures were within predictions.
“The city’s ability to pay liabilities with current assets was excellent,” Adams said. “The city also maintains adequate reserves in all major funds.”
Adams said city officials have adopted a conservative debt policy in regards to the amounts of money borrowed and the establishment of repayment terms. But, he said, several major revenue sources are not growing as fast as expenses and that may impact the city’s ability to increase or maintain future spending levels.
Those financial losses are being offset by streamlining the way the city does business, borrowing, expense reduction, service reductions, tax and fee increases.
The report notes that the city’s total assets exceeded total liabilities by approximately $228 million. Long term debt decreased by $2.5 million for government activities and decreased another $2.4 million for business activities.
Government non-tax revenues were approximately $24 million compared to expenses of $65 million which means about 37 percent of government expenses were paid with non-tax funds.
City officials said the fact that the city has money in reserves says a lot for the way officials keep expenses down and manage assets. But, Adams warned, a single event like a major hurricane could easily wipe out that so-called “rainy day fund.”
Future financial impact from state-mandated tax reform may create financial woes for not only Largo, but in Pinellas County and its other municipalities as well.
Adams said the country’s weaker dollar is, in fact, drawing more foreign tourists to Florida. That equates to additional taxes and other revenues.
The city general fund’s major revenue sources over the past five years showed increases in such areas as property taxes, some stability in electric taxes and fees and slight increases and decreases in other areas.
Total growth in these areas, the report states, was approximately 2 percent. That represents a growth below that of most expenditures.
Much of the city department savings came as a result of savings in areas of purchasing, operating expenses and job freezes. City managers were able to cut costs by not replacing equipment, not expanding programs, not replacing jobs left open by retirements and resignations and through other austerity programs.
|
Article published on Wednesday, March 26, 2008
Copyright © Tampa Bay Newspapers: All rights reserved. |
