Analysis shows warning trend for Westwood Golf Course

Westwood Golf Course was one of a few warning trends for the city, Natalie Umsted, city management analyst, discussed during a financial trends analysis presentation to the city council.

Positive trends such as the decreasing unemployment rate in Newton were also highlighted. The unemployment rate in Jasper County has gone down every year from 2010 to 2014 and is the closest the county has been to the statewide unemployment rate since 2003.

“The purpose of the financial trends analysis is designed to help city officials make sense of the many factors that effect the cities financial condition,” Umsted said.

Most trends were reported from 2008 through 2013. There were several factors that effected the trends including demographics, revenue, expenditure, operating and debt.

The trends are classified in three categories. First warning trends are those that represent something that have been unfavorable for the cities financial condition for multiple years in a row. Second positive trends are the reverse of warning showing favorable condition for several years in a row. Last, information trends are those that don’t show a warning sign or positive trend but is information for understanding the financial condition.

The city has several factors when considering its financial position. Those include if it can continue to pay for what it is now doing, are there enough reserves, is there enough financial flexibility to allow adjustments for change and is the city adequately investing in and preparing for its future. If the city can meet those factors, it is in sound financial condition, if not, it may experience or should anticipate problems.

Along with the unemployment rate, shortfall and surpluses, deficit or surplus, unreserved fund balance, liquidity and debt service are positive trends for Newton.

“Each year, a local government generates either an operating surplus or an operating deficit. An operating surplus develops when current revenues exceed current expenditures, an operating deficit when the reverse occurs,” Umsted said.

The City of Newton does not have frequent or growing deficits and it also has a growing unreserved fund balance that has increased over the past six year. The growing funds show that they city is prepared for unpredicted expenses and emergencies, Umstead said.

On the other side, Newton has warning trends in property value, home ownership, employee benefits and with the Westwood Golf Course. The decline in property value between 2012 and 2013 can be partially attributed to the commercial and industrial 5 percent property tax reduction. The state has a rebate program the city can participate in to recoup some of those loses.

In comparison to the rest of the state, Newton has a significantly lower home ownership rate. The statewide rate is 72.61 percent while Jasper County’s is 70.78 percent. Newton has an ownership rate below 60 percent. Housing development has been an area of focus for the city, with the development of Fountain Hills in fall 2014 and the housing initiative giving $10,000 for home buyers as well as additional incentives for home builders.

At Westwood Golf Course, steps have been taken to reverse the trends, including reduced new membership rates for those ages 22 to 35 and additional marking, including a new website.

Areas where the trends were mostly informational ranged from population and the age of the population and workforce, household income to city revenue and expenditures by function. The full report is available at newtongov.org.

Contact Jamee A. Pierson at 641-792-3121 ext. 6534 or jpierson@newtondailynews.com.