Flossmoor gets glowing financial audit
BY SARAH ZYLSTRA Correspondent October 23, 2013 10:36PM
Updated: November 25, 2013 12:41PM
Flossmoor’s finances are in fine shape, according to an audit report for the fiscal year that ended April 30.
“The village has done a very, very good job at being financially frugal,” auditor Fred Lantz told the village board. “Some of these financial policies that the village and the board of trustees have adopted historically ... really serve as the foundation for very, very good financial management overall.”
Flossmoor has a line-item audit done each year, village finance director Scott Bordui said.
Lantz said Flossmoor’s financial status has resulted in a bond rating of AA+ and a low interest rate of 2.54 percent in January on the bonds for its water main project.
The village’s general fund, its main operating fund, decreased by about $424,000 during the fiscal year, less than the anticipated drop of $745,000, Bordui said. He said most of that money went for a streetlight replacement project, and the savings came from that work and other projects coming in under budget.
Health insurance premiums and worker compensation expenses were lower than anticipated, and several personnel vacancies also saved money, Bordui said, and higher sales and state income tax revenue helped the general fund balance.
Even new accounting procedures for pensions, which move unfunded pension costs to a line item on municipal budgets, won’t trip Flossmoor up. The village has been fully funding its pensions even though the state allows for 90 percent funding.
“There are not too many folks that report a net pension asset for funding more than what the actuary says you should into a pension plan,” Lantz told trustees. “That in itself is a significant accomplishment.”