After hearing the summary of the independent audit conducted on the city of Branson for the year Sep. 30, 2007, Alderman Stephen Marshall said, “Our house is in good shape” and that he was pleased with the report. The audit report was presented by David L. Cochran, CPA, with the Kansas City firm of Cochran Head Vick & Co., PC, who was hired by the city of Branson to do its annual independent audit.
The report’s financial highlights indicate that at the close of fiscal year 2007, the city’s assets exceeded its liabilities by $140,727,459. Of that total amount, $14,879,216 of unrestricted assets is available to meet the city’s “ongoing obligations to citizens and creditors.” The report also states that the balance of the city’s general fund at the close of the fiscal year was $12,850,529 and that the city’s total debt decreased by $3,085,653 or approximately 1.57 percent of the city’s total debt.
Another financial highlight of the report indicates that the city’s total net assets increased by $2,799,819 during the fiscal year. It points out that the increase represents “the degree to which increases in ongoing revenues have outstripped similar increases in ongoing expenses.” The report goes on to attribute the increase to “increases in revenues, a result of the many changes and activities the city has entered into, including the city’s successful use of tax increment financing.” Specifically, the report cites the main components of the revenue growth as coming from “increases in sales taxes, increases in utility revenues, and new revenues from tax increment districts.”
The report shows that about 56.5 percent of the city’s total revenue comes from its sales and tourism taxes. Only about 4.4 percent of its revenues come from property taxes. The funds from intergovernmental activity taxes increased $2,129,328 during the fiscal year 2007. The intergovernmental activity taxes reflect the TIF taxes captured from other government entities that the city used to support the debt service requirements of its development districts.
The $12,850,529 balance of the general fund at the close of the fiscal year reflected a decrease during the year of $803,939. This decrease was attributed to an increase in expenditures in connection with the opening of the convention center and other “across-the-board increases in general operating expenditures.”
The economic outlook states, “In the years prior to the Branson Landing Opening, the City of Branson has experienced very limited growth.” It goes on to state that “Revenues have expanded at an unprecedented pace, surpassing the rapid increases experienced in the 1990’s” and that all this activity has been spurred by the development of the Branson Landing and Branson Hills projects.
