MAGNOLIA SPRINGS, Ala. — As 2013 readies to draw to a close, it seems the town of Magnolia Springs is in good financial shape.

During last week’s regular meeting, the Town Council heard the results of its annual audit conducted by the Gulf Shores-based Grant, Sanders and Taylor certified public accounting firm.

“Our opinion was a clean opinion,” firm representative Leah Groussard told the Council.

She took the Council members through the 22-page report that provided detailed analysis of the town’s finances, as of Sept. 30, the end of the fiscal year.

“The assets of the town exceed its liabilities (net position) at the close of the fiscal year by $2,003,060 for government activities,” the report stated. “At the close of the fiscal year, the town’s governmental funds showed a combined ending fund-balance of $301,116.”

However, the town did go over budget on two items in this last fiscal year.

“BP Oil Spill was over budget because the town received approval of the reallocations grant from AEMA for the wetlands project,” the audit report states. “Professional fees were over budget by $26,874 due to two lawsuits against the town.”

In the other direction, a third variance showed the town came in under budget by $27,422 on its street, budget and public-works project. That occurred when the budgeted paving of a street was completed during the year.

Groussard pointed out one additional plus in the town’s financial outlook.

“you guys don’t have any long-term debt,” she told the Council.

That’s because the town had paid off its previous loan with United Bank.

“We did pretty good,” Mayor Ken Underwood said.

However, the report also pointed out five factors that could impact the town of Magnolia Springs in the near future:

• The responsibility of maintaining or improving the town infrastructure, such as paving the dirt roads or resurfacing some of the exisiting roads.
• The possible acquisition of the old Magnolia Springs School property.
• The Magnolia Springs Library is requesting that the town take over the library, which would have a financial impact on the town.
• The town has been awarded a $400,000 federally-funded sidewalk grant, and the town’s cost estimate will have a considerable impact on the town’s finances.
• The Magnolia Landing site, along with its further development and maintenance.