MADISONVILLE, KY (12/15/11) – Charles Kington and GR Chandler of Berry & Kington, P.S.C. met with the Madisonville City Council Audit Committee on Thursday afternoon in advance of the formal report to the City Council on Monday. Kington told the committee that the City of Madisonville was in the best financial condition that he had ever seen.
Kington also complimented the city on its 28th consecutive Certificate of Achievement for Excellence in Financial Reporting. The certificate was presented by the Government Finance Officers Association. Kington said that very few cities or agencies receive the award one year and 28 consecutive years is a great achievement.
Kington said that the positives were that the city had been able to pay down $1.5 million in debt and had met its budget obligations. There were some areas of concern that were repetitions of past problems and there were some one time issues that would not be reoccurring.
The two problems that were reoccurring was a negative balance of $170,000 in the Airport Fund and the Policemen and Firefighter Pension Trust Fund. The Airport Fund has had a deficit since 2003 and Kington said that it was time for the City Council to bite the bullet and acknowledge that the airport was a necessity and would always cost more than it brought in.
The Pension Fund is a larger problem. It will run out of money in May 2012, according to Kington. Actuaries predict that the fund presents a $5,346,993 liability to the City. Mayor Jackson said that he wanted to continue using the trust fund as opposed to setting up an expenditure on the city budget. He said that the city would contribute whatever was necessary to fulfill the promise to the retired fire and police. Kingon said that with the City’s revenues, there should be no problem meeting the obligation. Still, the City will have to pony up a half million dollars per year for years to come.
The final analysis is that Madisonville has 84 days of operating capital and “The financial status of the City (Madisonville) is sound.” Kington said.
Mayor Jackson said that if the City continues to perform well “We want to pass some back to the citizens.”
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