The same day former American Fork treasurer Heidi Mitchell was scheduled to be arraigned in court for theft of almost $80,000 in cash, an independent auditor assured the City that the financial controls now in place are functioning properly.

During a meeting Tuesday, Ron Stewart, of the Gilbert & Stewart accounting firm, told the City Council that while there were deficiencies in the internal controls of cash for part of the year, “additional reviews at the end of the year show the controls are in place, effective and functioning properly.”

The meeting, in essence, turned a page on a somber episode within American Fork City offices earlier this year, when a routine audit uncovered account anomalies. The City fired 34-year-old Heidi Mitchell in April after an investigation concluded that she had misappropriated funds during her time as a financial clerk between March 2009 and February 2012.

In a delay-ridden case filed on April 9, Mrs. Mitchell was scheduled to be arraigned on Dec. 11, but a request for continuance as the defense indicated they were close to a resolution pushed the arraignment to Dec. 18.

Mr. Stewart’s report, which is part of an annual financial report for the most recent fiscal year, was reviewed by the American Fork Citizen.

As municipalities across the U.S. are grappling with a plunge in property tax revenues, the report of American Fork City’s financial health emerges as a rare example of strength.

While net assets often serve as a useful indicator of a government’s financial position, American Fork City’s assets exceed liabilities by $125,668,405 for the fiscal year ended June 30, 2012, according to the report. Not only the City decreased its expenses by $1.5 million — from $31,990,068 to $30,412,462 — it also increased its revenue from $33,342,691 to $35,351,865, when compared to last year.

“We can look at our present situation nationally, then compare it to the way things are on a community level. I’m very pleased with staff and everything they’ve accomplished to recognize these changes,” said American Fork councilman Clark P. Taylor.

Sales tax revenues also tell an optimistic story for the City, showing an increase of 7%, an improvement when compared to the previous year’s increase of 3% in sales tax. As a whole, the total capital asset of the city is $167,377,357, while its total long term liabilities, such as bonds, are $64,038,855.

“I want to commend the staff for their work in preparing this audit and thank the firm for its efforts,” said councilmember Heidi Rodeback, who heads the Finance Committee.

The report came just days after the news that a mismanaged loan for $123,000 at Highland City ended up costing its taxpayers nearly $500,000 in interest.

Addressing the Highland incident, American Fork mayor J.H. Hadfield said American Fork had been watching the bonds very closely. “We have been successful in refinancing several [bonds] and saving a great deal of public debt,” he said.

In what seemed counterintuitive for a city mired in austerity, American Fork also approved on Tuesday the payment of all utility bills for those on active duty in the military in 2013, a tradition it has started eight and a half years ago and maintained during the Great Recession.

In the past five years, the City has waived nearly $90,000 worth of utility bills for mobilized, deployed and activated military personnel. It now estimates it will pay roughly a total of $11,000 next year for just 10 accounts, as the draw-down of wars overseas translates into fewer activations.

“It’s been a good gesture from our community to recognize those who are called on an active federal service,” said Mr. Hadfield. “When they are called on active duty they are no longer making the wages they were making as employees. They are fathers and husbands, and we’d like to help the families with the bills.”

Danny Crivello can be reached at crivello@citizen.af or via text at 801-477-6397.