Clean Bill Of Financial Health For Beachwood

BEACHWOOD, OH — The city of Beachwood has received a bill of financial clean health from the Ohio State Auditor Dave Yost. The city received word last week that Yost's office had returned an audit of Beachwood and found the city in strong financial shape.

The report, based on data submitted by the city on Dec. 31, 2016, found Beachwood's capital assets have increased by $2,050,755. Meanwhile, the city's liabilities decreased by $1,120,789. The city increased the size of its general fund by about $3 million, as the fund grew to $29.1 million. The general fund is used to pay for municipal programs and services.

Revenues from governmental activities decreased between 2015 and 2016 by $4,169,380. However, program expenses also went down over the same time span by $2,236,166. (To stay up to date on local stories, subscribe to the Patch Beachwood newsletter. As news breaks and the story develops, you will be the first to receive updates from Patch.)

"The decrease in revenues is due to a decrease in capital grants and assessments," the report says. "In 2015, the City issued special assessment bonds for Eaton Boulevard. On a full accrual basis, the entire assessment is recognized as revenue in the first year. The increase in police and fire expenses is largely due to pension expense related to GASB 68. The increase in public service expenses is largely due to pension expense related to GASB 68 and an increase in salaries and benefits."

In fact, public safety expenses make up the largest chunk of 2016 expenses for the city, at 44.9 percent of total 2016 expenses. A majority of that expense is salaries and benefits.

Beachwood also managed to decrease its debt between 2015 and 2016. Two years ago, the city's outstanding debt was at $19,290,204. In 2016, the outstanding debt obligations were at $17,394,896.

"We're very pleased with this audit because it shows our commitment to financial accountability, transparency and responsibility to our residents and taxpayers" said Mayor Earle Gorden in a statement. "We have a strong tax base, we budget conservatively, and those factors will help position us for continued economic success.

The audit report for Beachwood can be accessed here.

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