City of Pearsall achieves superior financial standing in audit

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Pearsall councilors learned the city has superior financial standing, a position Mayor Ben Briscoe attributes to strategic planning by elected officials and the administration.
“Overall, the general fund reflected a positive side,” the mayor said in the March 12 meeting before the audit was reviewed by a representative from independent auditors Armstrong, Vaughn & Associates, PC.
According to the financial report, the city’s total net position was $19.2 million; the general fund balance was $4.1 million, of which $3.7 million was unassigned.
“The net position of the city has increased,” Karl Goreing, certified public accountant, said. “You have eight months of expenses in the general fund.”
Goreing noted the city’s total governmental revenues were $8.9 million, of which 74 percent of the revenue was generated from taxes, compared to 70 percent in the prior year.
The city’s debt service fund decreased by $86,000; the total bonded debt is $11.9 million.
In February 2012, the city issued $8 million in certificates of obligations, which was levied against taxes, for improvements to the city’s water and wastewater system.
Three months later, councilors approved a second bond in the amount of $1.7 million to construct, renovate, enlarge, and purchase equipment and land for the city’s water infrastructure. The city was required to have a reserve of $45,000 set aside in trust, but the city failed to meet the requirement. Therefore, the debt is considered direct borrowings and placements.
In May 2016, the city issued $8.5 million in certificates of obligations for improvements to the city’s water infrastructure and construction and improvements of streets, curbs, sidewalks, drainage, improving the city’s distribution system and renovation of the old City Hall.
Briscoe noted in the meeting that the city is expected to pay off the debt balance within the next few years.
According to Goreing, the city’s revenue has increased due to sales taxes; however, expenditures have remained very comparable to the prior fiscal year.
“The thing to note is that we are going to continue to talk about the gas side,” Briscoe said, referring to the revenues generated from utilities. “But overall, we are doing good. We have a major capital project and we do not have to borrow for that so hats off to the administrative side.”