The city of Lonsdale has maintained financial standards for another year, resulting in a clean audit.
Ryan Schmidt, CPA of Shlenner Wenner & Co., presented to the City Council its audited financial statements at Thursday’s meeting and said he found “nothing unusual.”
The city’s cash and investments increased by 26%, or $593,000, from 2017 to 2018, with an ending fund balance of $2.9 million in reserves. According to Schmidt, city expenses for various improvement projects were fewer than the budgeted amount.
According to the financial statements Schmidt shared, the city’s operating expenses exceeded its operating revenue last year. Where Operating revenues in 2018 were $2.9 million, operating expenses were $2.3 million.
Unlike last year, the city’s unassigned reserves did not exceed the State Auditor’s recommendations. According to Schmidt, the city of Lonsdale falls within the recommended 35% to 50% of the city’s annual expenditures.
Similar to last year, Schmidt said the one weakness in the audit was the city’s lack of segregation duties, which means some staff members have a little more access to financial data than what Schmidt considers ideal. However, with fewer staff members than larger cities, Schmidt said this situation isn’t a big concern for Lonsdale.
Overall, Schmidt called Lonsdale “a healthy city, financially” and confirmed the city is in good shape to pursue a City Hall/Police Station project. He noted his observation that staff “definitely cares about the city.”
Mayor Tim Rud credited city staff for being conservative with the budget, which he said Lonsdale’s forefathers “built through all the ups and downs of the economy.”