February 23, 2007                                                                               Contact: Sue Baker
For Immediate Release                                                                         738-2000

WARWICK – Mayor Scott Avedisian announced today that the city has received, for the fifth year in a row, an unqualified audit opinion of its finances. The assessment is the highest mark the city could receive, and affirms that the report “presents fairly, in all material respects, the financial position of the city,” as of June 30, 2006, according to Finance Director Ernest Zmyslinski.

Among the major points of interest:

• The city’s unreserved, undesignated fund balance on June 30, 2006 totaled $12,267,624. This is an increase of $2,823,127 over the FY05 unreserved, undesignated fund balance of $9,444,497.
• The city’s net assets – all funds combined – total $140.7 million
• As of June 30, 2006, the city’s gross revenues exceeded expectations by approximately $2.7 million, in large part due to “strong and steady collection” in the areas of property taxes ($2.2 million) and interest on investments ($735,000). School revenues fell below budget by $264,000
• The School Department generated an overall surplus of $2,471,492. This amount has been reserved for subsequent reallocation to the School Department
• The city’s total investment in fixes assets, net of accumulated depreciation, amounted to $328.8 million. FY06 net additions totaled $8 million. This was primarily due to a massive sewer construction program, improvements to the city’s infrastructure, and various school renovation projects
• Net assets of the Sewer Authority increased by $2.1 million, to a total of $38.9 million.
• Water net assets totaled $12.4 million on June 30, 2006

“Once again, the audit shows that we are being good stewards of the city’s finances,” Avedisian said. “Obviously, news of the surplus – which is higher than we originally anticipated – will be helpful as I prepare the budget. I am very grateful to all of our department directors, who have continually stepped up to the challenge of keeping expenses in line while providing quality service to our residents.”

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