The city of Cortez got a clean bill of financial health, according to a recently completed audit.
The audit, conducted by Englewood-based CPA firm, Holscher, Mayberry and Co. analyzed the city’s finances for 2014.
Kathi Moss, finance director for the city, explained at the Sept. 22 Cortez City Council meeting that revenues in the general fund increased by 18 percent in 2014 compared with the previous year.
“That’s a pretty good increase,” said Moss.
The increase was driven by an uptick in oil and gas severance tax collected by the state and dispersed to local governments through a complex formula, said Moss. Colorado levies a 6.8 percent severance tax at the state level on oil and gas producers, and local governments collect property taxes on the value of energy production within their boundaries. Values are determined by a state-set formula based on numerous variables such as the number of employees, the number of rigs in production, among others.
“That really derives how we receive severance and oil and mineral rights leasing tax. It did go up quite a bit, and that’s just based on their formula,” said Moss.
Nonmajor funds, which encompass specific funding areas like fiber, street improvements, and equipment, saw a decrease of $189,000 due to capital projects. The city was also able to increase its net assets by $1.2 million.
“Overall the city is in a healthy financial position,” said Moss.