Metropolis’s internet revenue grew by $13 million final 12 months
The town of Durango introduced it has acquired the “very best marks” on its annual complete monetary report produced by impartial auditor Eide Bailly’s evaluate of the town’s books and information.
The audit recognized simply two errors within the metropolis’s monetary statements:
- A 2022 insurance coverage premium fee incorrectly filed as accrued by Dec. 31, 2021.
- The absence of Enterprise Enchancment District taxes to be acquired by the town in 2022.
Corrections had been made in the course of the audit to mirror accuracy, Paul Kane of Eide Bailly mentioned at Tuesday’s Durango Metropolis Council assembly.
Kane mentioned the nine-month effort to conduct the 2021 audit and remaining monetary assertion is a noticeable enchancment in tempo in contrast with the 15-month course of concerned with the 2019 complete monetary report.
“The previous couple years have seen longer turnaround occasions on the Annual Complete Monetary Report due to the rebuilding of the finance division in 2020 that came about after the finance division’s earlier director was convicted of embezzlement,” the information launch says.
Julie Brown, former metropolis finance director, was sentenced to 5 years in jail in 2021 for embezzling greater than $700,000 from the town over greater than 11 years. She was later resentenced to 90 days in jail and 20 years of probation.
Kane mentioned monetary audits have noticeably improved and that the Eide Bailly workforce goals to have the 2022 audit accomplished by the top of June subsequent 12 months, extra according to the work schedule the town had in place earlier than the Brown embezzlement scandal shook issues up.
He mentioned since 2020, Eide Bailly carried out forensic audits and inner management exams with the assistance of third-party consultants; they had been barely used within the 2020 monetary audit and this 12 months the audit was carried out all in-house with Eide Bailly.
“I feel you’re all on a trajectory to get this finished even sooner subsequent 12 months, again to most likely the place you’re used to getting it finished,” he mentioned.
The town of Durango introduced the discharge of its audited 2021 annual monetary report on Sept. 15, days after Durango resident John Simpson filed a lawsuit in opposition to the town after being denied entry to an unaudited model of the identical report.
Tom Sluis, spokesman for the town, mentioned the timing of the audited report’s launch isn’t associated to the lawsuit filed Sept. 9 by Simpson, which alleges the town violated the Colorado Open Information Act by denying him entry to its unaudited 2021 monetary report.
“We might sit up for a ruling from a choose in settling this matter,” Sluis mentioned, referring to the lawsuit.
He mentioned the town is assured in the way it supplies monetary information each day to the general public in an correct and clear method.
Alex Arndt of Eide Bailly mentioned the town’s belongings exceed its liabilities by practically $365 million, that means the town has “greater than sufficient cash” to cowl any money owed or shock monetary wants.
He mentioned assigned and unassigned fund balances within the metropolis’s basic fund grew by about 39% in 2021, which is indicative of a wholesome standing with reserve funds.
The town’s internet revenue grew by over $13 million in 2021 in contrast with 2020, from $18,234,341 within the latter 12 months to $31,603,961 final 12 months.
He added that money owed and liabilities are taking place in worth on account of debt funds with out extra money owed added in 2021.
Internet revenues rose final 12 months from practically $88 million to $89 million, however internet bills additionally rose by about $6 million from $69.5 million to just about $76 million.
“A few of these (expense) will increase had been because of quite a lot of the business-type (funds); the water and sewer had extra bills extra so than earlier years, in addition to the transportation fund,” Arndt mentioned.
Kane of Eide Bailly mentioned the Durango-La Plata County Airport can also be in a robust monetary place. Its mixed restricted and unrestricted fund stability for 2021 was $13,101,851, or 189% of its annual bills.
DRO’s complete revenues in 2021, nearly $8 million, fell from 2020 by about $4 million on account of COVID-19 funding and airport enchancment applications.
“The airport’s again to regular: You all know you had an ideal journey 12 months,” he mentioned. “I really feel like the entire nation did. However from all accounts it feels like Durango was simply hopping and the airport obtained to see a growth there of their working revenues in addition to a rise of their working bills.”