SYCAMORE | The Sycamore City Council discussed the town’s current financial situation at Monday night’s meeting.

According to the agenda, Dennis Hildebrandt and his audit team from Siepert & Co., LLP performed an independent audit of the financial statements for Sycamore for the fiscal year 2010 as of April 30.

“This is the second year that we have issued a clean opinion, there’s no exceptions, which, to be honest, we issue very few,” Hildebrandt said.

Hildebrandt said he has brought small issues up to the city and they have always been addressed in a timely manner, preventing them from appearing on the audit.

The agenda states the “Great Recession” of 2009 did have its affect on the city’s key revenue sources. State sales tax revenue sources as well as home rule sales tax were less than budget projections. This resulted in a second consecutive operating budget deficit of $641,544.

“We did note that there were two funds over budget,” Hildebrandt said. “The general fund being one…and the 2009 EPA Loan Fund and that was tied in with construction that occurred late in the year.”

Hildebrandt said these funds were over budget because of the way the city does it’s budgeting, not because they overspent.

“Even though numbers weren’t increasing over the prior year, for the most part…the net income was positive,” Hildebrandt said. “It’s not as high as it was in the previous year, but it still is a positive number.”

In it’s current state, Hildebrandt said the city could survive for four months if all sources of revenue stopped, which is the time frame recommended.

“Throughout the city’s finances as a whole, I would say that it’s one of the few that I’ve done that still had positive numbers throughout,” Hildebrandt said. “Time’s are tough and we’re seeing it all over.”

City Manager Bill Nicklas thanked the council for making tough decisions about the city’s finances when they needed to be made.

“The city experienced an operating deficit of revenues over expenditures for the fiscal year 2010 but this council made the decisions necessary to balance the budget,” Nicklas said. “That was done with a combination of some reserve transfers, reduction in spending and also a tax increase. A very pragmatic approach was taken to keep us solvent.”

Sycamore Mayor Ken Mundy said the audit is testimony that the city is on the right track with it’s finances.

“I am pleased that the audit reflects what the budget master Mr. Nicklas and Brian Gregory and all the department heads work on on a daily basis,” Mundy said. “It’s gratifying Sycamore through this period, at least to date, has paid it’s bills and continues to run one of the most aggressive street programs in its history and those are some things that are pretty remarkable.”

The next city council meeting will be at 7 p.m. Monday, Oct. 4 at the Sycamore Center, 308 W. State St.