City assets top liabilities by $27 million

The City of McCook appears to be in good fiscal shape, with net assets exceeding its liabilities by $27,321,937.

A financial snapshot of the city using the 2007-08 budget was presented to the McCook City Council Monday night at its regular meeting, from information gathered by the auditing firm of Almquist, Maltzahn, Gallway and Luth of Grand Island.

Capital assets, such as land, infrastructure, streets, improvements and equipment, less any debt issued to acquire these assets comprise 66.6 percent of the city's net assets.

The city was also informed that water, sewer and trash rates may need to be increased to improve the debt coverage ratio, the amount of funds needed to cover expenses for possible financial shortfalls in the future. The statewide average is 2 percent, with the water department at .66 percent, sewer at 1.61 percent and 1.75 percent.

But as these numbers did not take into account the ready-to-serve fee increase of $1.50 that is scheduled to take effect in the water department next year and the trash collection fee increase of $1.50 for this year.

The chief operating fund of the city, the general fund, allocates the majority of its money for police safety at 39 percent, followed by 25 percent for environment and leisure, such as parks and ball parks.

General government takes 19 percent with public works at 17 percent.

Other financial highlights concerning the city coffers included:

* A total of $741,142 used for property tax relief from city sales tax revenue.

* accumulated sales tax receipts of $1 million used to buy down the State Revolving Loan fund for water improvements

* the council committed $250,000 annually for future one- and six-year street plan improvements

* the city purchased the West Ward school and property for a total of $103,910

* Phase I of J Street improvements, which replaced asphalt with concrete, was completed for a total cost of $634,510.

* Phase I of the Kelley Creek Walking Trail was completed through a grant from the Nebraska Department of Roads at $140,886. Total cost of construction was $170,950. Local donations and committed city funds were used to meet the match requirement

* the current year's lease with Nebraska Public Power generated $927,262.

Of this amount, the city put $339,263 in the self-insured health insurance fund for city employees and $633,000 in the general fund.

* annual revenue received from the franchise agreement with Source Gas was $38,100

* Keno netted the city $37,750

In other business at the council meeting Monday night, Sue Chipman, director of the Heritage Senior Center, announced that a $1,000 donation from the Graff Foundation will be used to purchase kitchen equipment.

As the council had only three members present, Council member Colleen Grant was voted in as the temporary chairperson for the night.

Mayor Dennis Berry was absent due to ongoing health issues and Councilman Aaron Kircher attended the inauguration of President Barack Obama.

The council also approved a resolution that was required per city ordinance that excused Mayor Berry's previous and future absences from council meetings.