City Reviews Financial State of Sidney

Total government assets for the City of Sidney increased by about 11 percent, $5,535,585, by the end of the 2017 fiscal year, according to an audit presented to the city council by Rauner & Associates, P.C.

The audit is for the fiscal year ending Sept. 30, 2017. The audit was presented to the Sidney City Council Feb. 13.

While assets increased by 11 percent, expenses increased by 16 percent and revenues increased by $102,632, less than one percent.

Business-type Activities assets increased by 2-1/5 percent, $1,266,056 with expenses almost flatlining at a .21 percent increase. Meanwhile, revenues decreased by 1.14 percent, $163,892 and charges for services increased by $439,478 or 3.26 percent.

Taxes continue to make up the majority of governmental revenue at 62 percent. Operating Grants, Capital Grants and Contributions account for about 17 percent of the city’s revenue. Charges for services account for 7 percent of revenue, followed by franchise fees 6 percent of revenue.

General Government accounts for 32 percent of the City of Sidney’s expenditures at 32 percent of the budget. Culture & Recreation is at 22 percent, Public Works 20 percent and Public Safety 16 percent.

Electric costs account for 65 percent of the City’s Business-type Activities Revenue, followed by Water at 15 percent, Landfill 10 percent and Sewer at 9 percent. The Electric expenditures, according to the audit report, are 4 percent behind the revenues at 69 percent of Business-type Activities expenditures. Water is next at 13 percent, Landfill is 10 percent and Sewer is 8 percent.

Revenue is almost even between Business-type Activities and Governmental Activities with Business-type collecting 52 percent and Governmental 48 percent. Expenditures are also higher for Business-type Activities at 55 percent resulting in Governmental Activities at 45 percent.

During the audit, councilman Wendall Gaston asked what is the recommended debt to asset ratio.

“I don’t think there is any rule of thumb,” said Robert Rauner, Jr., CPA, JD., of Rauner & Associates, P.C.

City Manager Ed Sadler said Sidney is well under the maximum mill levy allowed by law, and the City is still capable of making payments.

Gaston added Sidney is close to 40 percent under the maximum level.

“I think the liquidity in all the areas is pretty good,” said councilwoman Kelly Utley.

In the City’s budget, property tax and DMV have steadily increased in the last three years. In 2015, the line item was at $1,474,602. The budget for fiscal year 2018 is $1,539,187. As of the end of January 2018, Property Tax accounted for $267,613 or 17 percent. Sales tax peaked in FY2016 at $3,380,500 before falling to $2,542,950 for FY2018.