NYM in good financial shape [UPDATED]Published 9:36am Friday, April 19, 2013 Updated 11:38am Friday, April 19, 2013
NEW YORK MILLS – A recent audit shows that the city of New York Mills is in good financial shape, with a growing fund balance and rising operating revenues bringing in more that its decreasing expenditures, according to the Perham Focus.
The city had $2.7 million in cash and investments at the end of the year as a result of efforts to build up its wealth over the last several years.
The city’s reserve fund is up to about $850,000, which is nearly 95 percent of its total annual operating costs. The Minnesota State Auditor recommends cities keep enough in reserve to cover about 35-50 percent of their annual expenses.
Other city funds are showing increases as well, including revenue from the liquor store and the water, sewer and gas from 2011 to 2012.
The city’s long-term debt has gone down to about $4 million, which equals $6,000 per resident and is higher than the typical $3,000-$4,000 average in comparable cities. But with a number of revenue sources, the city has enough money to make up that debt.