(Dec. 22, 2016) Discussed briefly during a public meeting last Monday, the Town of Berlin posted its audited financial statement for fiscal year 2016 online on Tuesday.
The report, prepared by PKS & Company, gave an “unmodified opinion” of town finances, which is the highest level of assurance provided by the Salisbury firm.
According to that document, Berlin’s combined net position as of June 30 was $29,277,000, including $22.8 million invested in capital assets and $5.2 million in restricted funds, leaving an unrestricted balance of about $5.2 million – a decrease of $677,000 from the previous fiscal year.
The town’s net position for “business-type activities” dropped $951,000 over the previous year. That was driven in part by an operating loss of $836,000 in the sewer fund and a total decrease in net position of $1 million. A year ago, that fund had a net position drop of $127,000.
Called “substantial” in the report was the decrease in special connection fees, $127,000 during FY16 as opposed to $895,000 during FY15.
A decrease in special connection fees related to the water fund was also labeled “substantial,” just $48,000 compared to $336,000 a year ago.
The town’s government funds reported a combined balance of about $8.4 million, an $874,000 increase. Last year, the town reported a $62,000 loss. PKS wrote the primary reason for that change was an increases in property and state-shared taxes of $276,000, as well as $434,000 in proceeds from the sale of a property.
Overall, revenues increased 7 percent or $358,000.
Expenditures jumped about $3 million, including $2.5 million for the purchase of the former Tyson’s Chicken plant on Old Ocean City Boulevard, funded by a general obligation bond.
The town amended the general, electric, water, sewer and stormwater fund portion of its budget, and called “significant” were budget variances of -$241,000 in impact fees ($57,000) and general government, public safety and capital outlay expenses, which were less that the $1.9 million budgeted.
It was noted that the town established a stormwater program and received $1.9 million in grants from three state and federal agencies, and that the town expects to break ground on a new police station in spring 2017.
“The Town is taking all reasonable measures to monitor and control expenditures,” the report stated.
To view the full report, visit www.berlinmd.gov/department/finance.
The report, prepared by PKS & Company, gave an “unmodified opinion” of town finances, which is the highest level of assurance provided by the Salisbury firm.
According to that document, Berlin’s combined net position as of June 30 was $29,277,000, including $22.8 million invested in capital assets and $5.2 million in restricted funds, leaving an unrestricted balance of about $5.2 million – a decrease of $677,000 from the previous fiscal year.
The town’s net position for “business-type activities” dropped $951,000 over the previous year. That was driven in part by an operating loss of $836,000 in the sewer fund and a total decrease in net position of $1 million. A year ago, that fund had a net position drop of $127,000.
Called “substantial” in the report was the decrease in special connection fees, $127,000 during FY16 as opposed to $895,000 during FY15.
A decrease in special connection fees related to the water fund was also labeled “substantial,” just $48,000 compared to $336,000 a year ago.
The town’s government funds reported a combined balance of about $8.4 million, an $874,000 increase. Last year, the town reported a $62,000 loss. PKS wrote the primary reason for that change was an increases in property and state-shared taxes of $276,000, as well as $434,000 in proceeds from the sale of a property.
Overall, revenues increased 7 percent or $358,000.
Expenditures jumped about $3 million, including $2.5 million for the purchase of the former Tyson’s Chicken plant on Old Ocean City Boulevard, funded by a general obligation bond.
The town amended the general, electric, water, sewer and stormwater fund portion of its budget, and called “significant” were budget variances of -$241,000 in impact fees ($57,000) and general government, public safety and capital outlay expenses, which were less that the $1.9 million budgeted.
It was noted that the town established a stormwater program and received $1.9 million in grants from three state and federal agencies, and that the town expects to break ground on a new police station in spring 2017.
“The Town is taking all reasonable measures to monitor and control expenditures,” the report stated.
To view the full report, visit www.berlinmd.gov/department/finance.