The city of Denison’s assets exceeded its liabilities and expenses by $53.5 million for the 2013 fiscal year, according to the city’s annual financial audit. The results from the audit were presented and approved by the City Council during a regular meeting on Monday.
The audit was performed by Conway Company CPAs, P.C. from October 1, 2012 through September 30, 2013. Mike Conway, representing the company at the meeting, said that the results show a path of “long, stable growth” for the City.
The audit found that the City’s net position increased by $1,175,340 for the 2013 fiscal year. The increase is a result of an increase in charges for services and property and sales tax revenues, the audit said.
Of the $53.5 million over its liabilities, the report said that $8.8 million is unreserved balance that can be used for unexpected expenses and emergencies, said Renee Waggoner, director of finance for Denison. About $43.5 million represents net investments in capital assets. As such, they did not generate revenue, and could not be used to generate liquid capital.
At the end of the fiscal year, the combined ending funds balance for the City’s governmental funds was $11, 697,049, an increase of about $2.7 million over the previous year. The audit attributed the change to an increase in total tax revenues of 2 percent. Of the end of year fund balance, the audit found that $3.9 million is available for discretionary spending.
Lastly, the audit found that the City’s long-term debt increased by $686,751 primarily due to the recent issuance of bonds, the audit said.In other matters, the Council received a report from Chief Building Official Dale Jackson on two unsafe buildings, that could be set for demolition.
The first property is a house located at 520 E. Washington. Jackson said that the building is currently unsecured and the front and back doors are open. The inside of the building has been vandalized, and the roof is damaged. Jackson said that the house could attract children and vagrants, and recommended that it be demolished.
The second building up for discussion is a large, older home located at 1209 W. Gandy. “The front of the building looks good, the sides of it not so good,” said Jackson, referring to gaps in the siding along the side and rear of the home. Jackson said that part of the upper level of the build had either fallen or was previously removed. Jackson also voiced safety concerns regarding the supports being used beneath the structure.
Bobby Hempkins and David Whiteside spoke on behalf of an investment group that recently purchased the home and funded renovations and rehabilitation in hopes of selling it. The pair said that they had been involved in the recent restoration of historic homes in McKinney. The project is expected to take about 90 days to complete, said Whiteside.
Council member Ken Brawley asked if the plumbing will be included in the renovation. Whiteside said that the plumbing and electrical systems are being renovated, and said he would like to have the city assist in ensuring that the building is up to code.
Mayor Jared Johnson suggested that the city give the investors 10 days to get the permits, and six months to complete the job. “Our intention is not to tear down what used to be a beautiful structure,” said Johnson. The Council unanimously voted in favor of the investors, sparing the house from demolition. The E. Washington, however, is set for demolition.