RANIER — The Ranier City Council received a positive report on its 2009 financial statement from the city’s auditor Monday night.
Don Zierke, certified public accountant for Miller McDonald, Inc. of Bemidji, presented the council with a report on the previous year’s financial position and made recommendations on what the city is doing well and where it could improve.
Zierke said it was a “safe assumption” to say that the city of Ranier’s financial condition was good. He cited the remaining governmental fund balance, which is equal to more than three months of the city’s bills, as being slightly below the preferred range of four-to-six months but at a good level for the city.
The city had $617,267 in net assets at year-end 2009. The city’s total net assets as of December 2008 were $635,195, for a decrease in net assets of $17,928 over the year. These numbers include both the general governmental fund and the liquor and water/sewer enterprise funds.
There was a $38,050 decrease in the funds available in the city’s main governmental fund. The city decreased its governmental fund balance from $92,038 to $53,988.
However, total revenues in the governmental fund exceeded the budgeted amount by $39,823. Total expenditures in the governmental fund were over budget by $9,378. One major difference in the city’s budget-to-actual was the amount of money transferred into the governmental account. The city budgeted for $116,677, but only transferred $48,182.
Zierke said the two enterprise funds were in “good, healthy shape. It just tells me you’re operating those funds as a business.”
Over the course of the year, the city transferred $48,182 from its liquor store fund to its governmental fund. Before the transfer, the liquor store made a net income of $47,481 over the year. Net assets at the end of the year in that fund were $134,253.
The city made a net income of $16,014 in 2009 from its water and sewer utility fund. Net assets at the end of the year in that fund were $352,831.
Ranier resident Arden Barnes questioned the solvency of the Ranier Municipal Liquor Store and asked Zierke to rate the establishment on a scale of one to 10, with 10 being the best. The liquor store financials were thoroughly reviewed aloud, and Zierke concluded by giving the business an “eight out of 10” review.
Barnes said she was pleased with the good report because the liquor store is a “very precious possession and I don’t want to lose it.”
Zierke noted two deficiencies in the city’s financial system: segregation of accounting duties and internal control over financial reporting. Both of these issues stem from the limited number of staff working for the city on these endeavors and its limited resources to self-prepare financial statements.
The CPA also explained that because Ranier has a population under 1,000 residents, its local government aid from the state was not reduced as it was for larger cities. Ranier received $24,177 in 2009 in LGA, as budgeted.
In other matters, without discussion the council members were presented for their review with the second quarter budgets for 2010.
The council also appointed election judges for the 2010 elections. Day election judges will be Wayne Kasich, Darla Welcome and Arden Barnes. Evening election judges will be Chris Polus, Nancy Heibel and Karen Tveit. Head election judge for both day and evening posts is city Clerk Kim Nuthak.
The council approved an estimate from Ty’s Tree Service for topping 30 ash trees in the city park. The cost is $50 per tree, for a total $1,500. City maintenance Teddy Pearson will clean the debris.
