Hogansville audit results show increase in net position

Published 6:26 pm Thursday, January 24, 2019

The Hogansville City Council reviewed its annual audit presentation for the 2017-2018 fiscal year on Tuesday. 

Stephan Wilcox, a certified public accountant from Wilcox and Bivings, PC, said the city increased its net position by $588,159 for the year based on an accrual basis.

Wilcox said by June 30, the City of Hogansville had assets of $27.72 million, differed outflows of resources of $122,000, liabilities of $25.4 million, differed inflows of resources of $2.62 million and net position of $12.68 million. According to Wilcox, the city’s total revenues were $9.53 million, which consisted of charges for services for $6.59 million, capital grants and contributions of $974,000 and general revenues of $1.97 million. Expenditures were $8.95 million last year. 

Last fiscal year, the city’s decrease in total revenues was $339,000, Wilcox said. The city also had an increase in public expenses of $338,000. 

Wilcox said the decrease in city revenues was mainly because of a decrease in capital grants and contribution revenues of $524,000 and an increase in general revenues of $153,000.

“The increase in expenses was due to increases in governmental activities expenses of $182,000 and utility system expenses of $156,000,” Wilcox said at the meeting. “At year end, the city had $1.99 million of cash and investments, of which $1.39 million were [Special Purpose Local Option Sales Tax] funds, and the city also had an additional $1.6 million in restricted cash and investments.”

Wilcox said the city’s financial position improved from the previous year, but its amount of debt makes managing cash flow challenging.

“The city needs to do an excellent job of managing its cash flow because there is not a lot of margin for shortfalls due to its debt load, and that debt load will be increasing with the (water pollution control plant) addition,” Wilcox said in an email.

Wilcox said that since the city’s utility system is its largest source of income, he recommends the council adjust and review the rates every year. Wilcox said the city’s general funds don’t generate enough taxes, fines, forfeitures and other revenue, which is why it uses transfers from its utility fund to work.

“(There was) not really any losses (last year),” Wilcox said in an email. “(The city) still needs to make sure that it adequately plans for additional debt from (water pollution control plant) addition, and servicing all of the debt. [It also needs] to build cash reserves for future needs.”

In other actions, the Hogansville City Council:

  • Unanimously re-appointed Tony Williamson to the Troup County Recreation Board.
  • Unanimously appointed to Vickie Brown as the Hogansville representative to the Troup Chamber of Commerce Tourism Board.
  • Heard from Hogansville water superintendent Joe Vidal about replacing water hydrants throughout the city. Vidal said some of the hydrants are almost 100-years-old, and it would be easier to replace them.