Mike Brafford of the accounting firm Phillips, Dorsey, Thomas, Waters & Brafford told Henderson City Council members on Monday evening that his firm had issued an unqualified opinion regarding the city’s finances.
An unqualified opinion is the best rating that can be received in a municipal audit.
Brafford commended the city on maintaining its fund balance which currently sports $3,250,124, with $2,074,000 in unrestricted funds.
The auditor cautioned the city to make sure that it doesn’t spend any of the fund balance and to try to add to it if it can.
Brafford noted for members that the debt service ratio for the water fund is 27%, 14% for the sewer fund, and 37% for the regional water fund.
According to guidelines, the debt service ratio should not exceed 10%; however, Brafford admitted that the 10% amount is “very conservative”.
Brafford reiterated a recommendation made during last year’s audit that the city hire a “grant person” to monitor and administer grants at least half-time.
According to an email from Henderson City Clerk Pamela Glover, a copy of the audit should be available on the city’s Web site next week.