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BUCHANAN — The city of Buchanan is in good financial shape, auditor Brian Hake told Buchanan City Commissioners Monday night. Hake, who is with the Kruggel Lawton auditing firm, gave the results of the annual audit of the city’s books for the fiscal year ending June 30, 2024.

Hake thanked city staff for their cooperation in getting his firm all the information they needed. He said his firm gave the city a clean unmodified opinion and told commissioners that the city had a very healthy budget surplus for the fiscal year ending June 30.

City officials had anticipated a small general fund surplus of just under $14,000 for the 2023-24 fiscal year and instead ended up with a much larger surplus of nearly $680,000. Hake said the city’s general fund reserves are now at $1.876 million which would keep the city operating for over eight months without any incoming revenue.

General fund revenue was expected to be $3.49 million and ended up at $3.87 million. General fund expenditures had been anticipated to be $3.02 million and actually came out at $2.735 million. After transfers in and out, $679,635 was added to the fund reserves.

Hake and City Manager Tim Lynch credited a number of factors including a big increase in investment income accompanied by a drop in expenses. Lynch said he and other City Hall staff had invested a significant amount of time in strengthening financial procedures including how cash is handled, investments, segregating duties and bank reconciliation tasks.

“These endeavors, along with other municipal monetary practices, should be evident in the current year’s financial reports and such documents in the years to come,” Lynch said.

“Our finances look very good,” Lynch added. “Investments went up from $132,000 last year to $573,000 this year.”

City Commissioners praised Lynch and city staff for their efforts. Just a year ago, many city residents were concerned about the city’s finances and feared budget deficits would lead to a possible state takeover of the city. Those fears proved to be groundless as the city has marked the second audit in a row showing a surplus.

The audit of the 2022-23 fiscal year showed a $200,000 surplus after the final budget amendment before that year’s audit predicted a $700,000 deficit.

Lynch is nearing the end of his tenure as city manager. He had served as the interim manager for a few months in 2023 and then came back as the full-time manager last December. He announced earlier this fall that he planned to step down at the end of the year.

City commissioners conducted a city manager search and voted in late November to offer a contract to Abonmarche vice-president Tony McGhee to be the next city manager. No final contract with McGhee has been brought before the commission for action. Lynch said Monday that he expects to stay on for a short while to help in the transition.

City Commissioner Dan Vigansky was the first to praise Lynch. “I want to thank you, Tim,” he said. “City residents don’t realize how bad it was. The budget was an absolute nightmare for years.”

Commissioners Larry Money, Raquell George and Patrick Swem as well as Mayor Mark Weedon also praised Lynch. “I want to thank Tim for everything he has poured into the community,” George said. “I hope he sticks around for a while.”

“Congratulations to the finance team for two years of improved audits,” Swem said. “The city government is running more efficiently and the belt tightening allows us to do more big projects.”

“There are no words (to say to Tim),” Weedon said. “You’ve given the city a breath of fresh air and proven that we’re not broke or destitute. I promise you we will continue to be fiscally conservative.”

Monday’s commission meeting also featured a presentation by OneBuchanan Chair Estephani Cashier-Rodriguez as well as an extended discussion about the new Common Collective.

Michael Rowland reported on the new Common Collective that is coordinating efforts of organizations including the Fine Arts Council-Tin Shop Theatre, the Common committee, the Buchanan Preservation Society-Pears Mill and the Farmers Market. He said representatives of those groups have been meeting to form a new city board to coordinate activities.

Vigansky raised questions about how much the city should be spending on these type of activities but commissioners ended up approving not only the summer concert schedule but also a $10,000 contribution to the concert series. Swem pointed out that the city has been contributing $10,000 annually for at least a decade.

Rowland said the Common committee has received donations in recent years and have also done fundraising. He said there is strong community support for both the Thursday and Saturday concerts throughout the summer.

Commissioners voted to cancel their Dec. 23 meeting. They will meet again on Jan. 13, 2025.

The city is calling for applicants interested in serving on the Municipal Officers Compensation Commission as outlined in the City Charter. Applicants must be registered electors of the city. Five people will be chosen to serve and decide on what compensation city officials should receive. People can apply at City Hall by Dec. 31.