Broken Arrow's financial health improves, audit shows
BY ZACK STOYCOFF World Staff Writer
Friday, January 04, 2013
1/04/13 at 4:53 AM
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Read the audit report Arledge & Associates’ 2011-12 audit report for Broken Arrow is available online.
BROKEN ARROW - The city's financial health has improved as a result of increasing revenue and a higher net worth, a year-end audit found.
Broken Arrow's net assets rose by 3.8 percent in the fiscal year that ended June 30 - one of the best measures of a city's financial growth, according to an audit report by Edmond-based Arledge & Associates released this week.
The company, hired by the city to conduct the annual audit, found that the city controlled about $288.5 million in assets in June, up from $278 million a year earlier.
That included all of the city's possessions, such as real estate and budget funds.
The city's revenue increased by a larger margin - 10.9 percent from $64 million in the 2010-2011 fiscal year to $71 million the next year, according to the last two audit reports.
Last year's operating cost of $58.2 million grew slightly from $57.8 million.
By June 30, the city's general fund had $7.4 million, up from $6.3 million the year before, the 2012 report says.
The auditors attributed the revenue growth partly to an 8 percent rise in sales tax revenue, which accounted for 50.8 percent of the city's income, along with a 2.4 percent drop in governmental expenses.
Their report concludes that "the city as a whole improved its financial condition from the prior year" but cautions that continued population growth and an economic slowdown could strain the operating budget in coming years.
Brisk growth and increased demand for infrastructure improvements will continue to be a "major challenge" in keeping up with operating costs, and sales tax revenue could decline during an economic slowdown, as it did in 2010, the auditors said.
The city continues watching economic conditions, and the threat of a possible economic decline has prompted officials to plan on having the same number of utility customers in 2013 despite recent growth, according to the report.
The city, which has added more than 25,000 residents since 2000, seeks regular infrastructure improvements funded by bond issues.
The next municipal bond election in 2014 will likely include at least some of the six road-widening projects that the city hoped to fund with its $44.1 million share of the failed countywide Vision2 sales tax initiative, officials have said.
The city has dubbed those projects vital as traffic has increased on east-west arterial roads.
Original Print Headline: Financial health of BA improves, auditors report
Zack Stoycoff 918-581-8486