BURLINGTON — The latest audit of the city’s books for the fiscal year that ended in June shows a $4.2 million surplus.
That’s up from a surplus of $70,000 in the previous fiscal year and a deficit of $2.1 million in fiscal year 2013, according to auditors with the firm Melanson Heath.
Since Mayor Miro Weinberger took office in 2012, the city has turned a $14.9 million deficit into a $4.2 million surplus.
A representative from Melanson Heath told City Councilors this week that Burlington’s decision to issue $9 million in stability bonds to curtail its short-term borrowing was a significant factor in the city’s improved finances.
The current surplus is largely driven by a general fund where revenues exceeded expenses by $2.8 million. City officials say that’s the result of a concerted effort to control costs and bring in new revenues that were bolstered by a strong local economy. The sale of city assets also contributed to the surplus, officials say.
As a result of the strong financial position, Weinberger said his administration will not seek a property tax increase on the March ballot. Monday was the last regularly scheduled City Council meeting where such a measure could be introduced in time to make the ballot.
The mayor said in a news release Wednesday that $1.3 million from the surplus likely will be used to pay for the rest of the current fiscal year’s capital plan, provided the City Council approves.
Weinberger said he may also seek to spend some of the surplus on “new investment in strategies to address the growing opiate challenge.” Those strategies are still being developed and would also need a green light from the City Council.
The mayor said he would like to keep as much of the surplus as possible in a rainy day fund to cover unexpected costs or see the city through another economic downturn. The increased liquidity from running a surplus has also been cited by the rating agency Moody’s as a reason for the city’s improved credit. Maintaining a good credit rating reduces the city’s borrowing costs, saving it additional money.
The audit also shows the city has improved its financial management. This year’s audit identified far fewer issues than in previous years. The fiscal year 2014 audit found four “material weaknesses” in the city’s internal financial controls and one “significant deficiency” — audit terms for practices that could be improved.
In the fiscal 2015 audit released this week, auditors identified only two material weaknesses and no significant deficiencies.
City Councilor Karen Paul, D-Ward 6, a member of the board of finance, said that’s a “quantum improvement” over previous years.
