The city of Perham, and its office staff, earned a gold star from the auditors.
"This is the best year financially that the city has had since we've been involved," said Roy Lunde, of the city's audit/consulting firm Brady, Martz and Associates. "The city has had an excellent year."
Perham ended the year with $443,920 in the general fund, which is about exactly were it should be, based on the size of its operating budget and assets. The auditors recommend a surplus fund of about 35-45 percent of the city's annual operating budget.
Financial well-being means good rates when city borrows money
All of the city's funds are healthy, said Perham Finance Officer Karla McCall, due in part to the success of its enterprises such as the city operated natural gas company and the city liquor store.
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This financial health means a high bond rating, which translates into attractive interest rates when the city borrows money, said McCall.
City assets climb to $22 million
City funds and assets increased from a total of $19.6 million at the end of 2005, to $22.3 million at the close of 2006.
Topping the list of assets is the city's sewer-wastewater system, at $3.5 million. Incinerator's assets are recorded at $3 million; the water system at $2.1 million; and the city liquor store, $1 million.
City gas company generates nearly $10 million in revenue
Perham's municipally operated natural gas company has assets of $1.5 million. The gas company generated $9.6 million in sales last year--against expenses of $9.3 million.
The municipal liquor store generated $1.47 million in sales-- with expenses for the year at $1.36 million
Other city assets include $1.7 million in the Revolving Loan Fund for economic development, and also the IRP loan porogram, at $2.3 million.
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PACC, golf course operate independently from city
Legally separate from the other municipal financial statements is the Perham Area Community Center and Perham Lakeside Golf Course. These are audited separately, but the city carries financial responsibility for the entities.
Defined as "component units," the PACC and the golf course are leased from the city by independent entities and their governing boards. The city owns the PACC building, the golf course club house, and all of the land at both enterprises
But the PACC and golf course boards own all the equipment and furnishings, and operate independently of the city.
The Perham Area Community Center's financial statement shows revenues of $759,234 in 2006--against expenses of $733,115. Assets owned by the PACC board total $1.6 million.
At the Lakeside Golf Course, its deficit climbed from $325,788 in 2005 to $355,752 iat the end of 2006. The golf course operation recorded $596,606 in revenues--against $626,570 in expenses.
