Another clean audit for the City of Fernandina Beach

Submitted by Suanne Z. Thamm
Reporter – News Analyst
March 23, 2017 12:56 p.m.

Mr. Ryan Tucker of the accounting firm Purvis Gray and Company formally presented the Annual Audit Report to the Fernandina Beach City Commission (FBCC) at the FBCC’s March 21, 2017 Regular Meeting. Tucker said that their firm has delivered the city an unmodified or clean opinion, the highest level of attestation that you can receive from a Certified Public Accounting firm. The audit process began in October and concluded with the FBCC’s formal and unanimous acceptance of the report by Resolution.

While not reviewing the entire 75-page audit (available on the city’s website in the Document Center under the Finance/Audit tabs), Tucker touched upon highlights, including the fact that annual revenues were higher than budgeted, and expenditures for the same period were lower than budgeted. He reported that city departments did a good job of financial management. He also reported that there are now special events procedures in place as recommended by a separate audit last year.

The audit document contained 3 pages of highlights covering items such as purchasing and putting into service a new fire truck, the city’s beach safety record, including the items as diverse as those listed below:

• The net position of the City exceeded its liabilities at the close of fiscal year 2016 by $50,868,284. The Unrestricted portion of the City’s Net Position is $3,095,892. This compares to the Unrestricted Net Position last year of a negative $286,279. This is an improvement of $3,382,171.
• The City was awarded grants totaling just over $1.1 million dollars for various public improvements associated with the Parks and Recreation, Police, Airport, and Marina Departments.
• Stormwater projects were granted $1,475,000 for improvements in 2016. The main project, improving the North Fletcher area drainage, will be completed in fiscal year 2016/2017.
• One annexation totaling approximately 9.26 acres and several voluntary sewer/water agreements for future annexations were processed in 2016. One new 48-lot subdivision broke ground in 2016.
• The 8th Street Small Area Plan was adopted, introducing higher-intensity, mixed-use development rights along the City’s struggling A1A/South 8th Street corridor and incentivizing redevelopment between Lime Street and Atlantic Avenue.
• Nassau County Commissioners and Fernandina Beach Commissioners ended 2015 by unanimously approving their respective ordinances to create a special taxing district on Amelia Island to pay for periodic beach renourishment. The millage rate levied for 2016 is 0.1021 mills.
• The Planning Department prepared an application for the City to be designated as a “Tree City” USA community for the fourteenth consecutive year.

Tucker noted that the city must maintain a healthy general fund reserve level to carry it over in case of an emergency such as a hurricane. The recommended level of reserves is 2-3 months of operating funds, roughly 25 percent of the budget. The city has exceeded that level by maintaining a 31 percent reserve.

He reported that the city has increased general employee pension funding from 64.8 to 66 percent, and the police and fire pension funding has risen to 70 percent.

Tucker concluded his report by thanking city comptroller Patti Clifford and her staff for their assistance in helping the auditors. He said that their efforts make the City of Fernandina Beach one of Purvis Gray’s best clients. Commissioners echoed his comments adding their thanks to Clifford for her overall performance managing the city’s finances.

Editor’s Note: Suanne Z. Thamm is a native of Chautauqua County, NY, who moved to Fernandina Beach from Alexandria,VA, in 1994. As a long time city resident and city watcher, she provides interesting insight into the many issues that impact our city. We are grateful for Suanne’s many contributions to the Fernandina Observer.