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Audit Objective

Determine whether the Mayor and City Council adopted realistic budgets that were structurally balanced, routinely monitored financial operations and took appropriate actions to maintain the City’s fiscal stability.

Key Findings

The Mayor and Council did not adopt structurally balanced budgets, properly monitor the City’s financial operations or take appropriate actions to maintain the City’s fiscal stability.

• The general and sewer funds experienced operating deficits from 2017 through 2019.
• Despite the City’s deteriorating financial condition, officials did not establish a fund balance policy, multiyear financial plan or capital plan.
• The Mayor’s and City Council’s budgeting practices and poor financial management have left the City in a vulnerable financial position.

Key Recommendations

• Take appropriate action to remedy the financial condition problems affecting the City.
• Adopt structurally balanced budgets that include realistic estimates.
• Closely monitor finances to prevent further decline in financial condition.

City officials agreed with our recommendations and indicated they planned to initiate corrective action.