Claremore Daily Progress

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February 6, 2013

City audit shows $4M revenue bump

CLAREMORE — In a review of its 2012 audit Monday, the City of Claremore gets a clean financial bill of health and a $4 million bump in revenues.

Total government funds for 2012 were $19,442,550, including approximately $11 million from sales tax and street fund revenues.
Government funds increased in 2012 by $4,029,458 and approximately $1.4 million of the increase was used for capitol projects.
The city had a net increase in revenue for 2012 and decrease in expenses that was attributed partially, to the refinance of several large notes. 
“We are living within our means.” City Manager Jim Thomas said, “I think the city is in good health.”
City revenues, excluding sales tax were approximately $36 million with a net gain of about $7 million after expenses.
The city utility department was the primary source for net gain with approximately $34 million in charges for service.
Claremore utilities reported $80,000 in bad debt for 2012, $405,999 in penalties paid and $18 million in wholesale utility costs.
Utility expenses included $3.4 million for personnel and $4.6 million in operating costs.
“This is a clean opinion,” CPA Floyd Langley said while presenting the information to the city council. The audit detailed additional changes for 2012; but overall, Langley provided only positive feedback to the city council.  He gave some feedback on internal controls addressing issues with the documentation of grant expenditures, managing employee files and documenting fixed assets.
None of the findings were considered “material” or significant, according to Langley. 
The issues that Langley addressed in the audit are ongoing from previous audits and require time to correct, he said.
“We have made a lot of progress since 2009,” Langley said. “We are not as clean as all cities, but we are headed in the right direction.”
The audit reports total 2012 assets to be approximately $101 million and liabilities to be $50 million.
In 2012 the city spent approximately $8.2 million for police, fire and judiciary services.
Transportation and streets used $1.4 million and general government expenses were $2.5 million. 
Government activities totaled approximately $2.7 million including the following expenses by department.
Information Technology — $226,630
Human Resources — $293,520
Clerk — $187,605
Managerial — $381,925
Finance — $315,288
Fleet Management — $779,389
General Government (sub category) — $173,126
Developmental Services — $250,333
Custodial — $135,562
The city received approximately $148,000 in service charges offsetting the cost of general government activities.

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