"The city of Sun Valley is in excellent financial condition."
Those were the words of the city's independent auditor in a report presented Thursday, Jan. 20 to the City Council.
The Twin Falls-based auditing firm Holmstead, Hyatt, Coleman & Mahlke issued the report after reviewing the city's finances over the course of the 2003-2004 fiscal year, which ended Sept. 30, 2004.
Overall, the firm determined that the city was in solid fiscal health at the close of the year, in large part because its revenues exceeded its expenses. During the fiscal year, the auditors said, the city's total net assets increased to approximately $9,740,000 from approximately $9,147,000 at the close of the previous year.
The city's income was bolstered in part by a 1 percent increase in local-option-tax revenues during the 2003-2004 fiscal year, as well as the implementation of new planning and building fees, the auditors noted.
"The city's revenue forecast was conservative and actual revenues exceeded projections," the auditors' report notes. "In total, the general fund ended the fiscal year with a surplus of $495,115."
The general fund is the city's primary operating fund, used to manage most aspects of general government and administration.
The auditors noted that the city at the end of the last fiscal year had approximately $5,182,000 in debt linked to general-obligation bonds, versus $4,030,000 at the end of the previous year. Nonetheless, the city continues to maintain a favorable bond rating of "A," they said.
The city's government is growing, the report indicates. The city spent approximately $4.3 million on "primary government" programs in the 2003-2004 fiscal year, the report states, up from approximately $3.9 million the previous year.
For the current fiscal year—which started last Oct. 1 and runs through the end of September—the city has adopted an overall budget of approximately $7 million. Of that, $3.18 million is slated to be spent through the general fund.
