Coatesville ended 2007 in the black, but not by much according to a summary of the 2007 audit presented to council Monday night by an independent auditing firm

Pam Baker, of Barbacane Thornton, said the general fund ended the year $118,0000 in the black. " I know that's not very large, but it's not a negative. And I know we've had years before where you were in the negative so we are moving in the right direction," she said.

In 2007 the city's real estate tax generated $2.5 million and the 2-percent earned income tax brought in an additional $2.5 million. City fees added another $550,000. The city also uses interest from the Trust Fund to offset city expenses. At the end of 2007, the Trust Fund balance was $21.7 million. Coatesville has the highest real estate and earned income taxes in the county.

Baker suggested that recommendations made the 2006 audit were most likely not carried out because of changes in the city's finance department. City Manager Harry Walker said following the presentation that Donald McKensie, the city's acting finance director or consultant, his title varied,was no longer employed. "He completed his task," Walker said when questioned, adding a search was underway for a new finance director.

McKensie was hired last year shortly after Walker fired then Finance Director Rick Dean for failing to show up for work. Dean was injured in an auto accident.

According to Baker, city revenues in 2007 were $7.2 million, falling $1.4 million short of the $8.7 million the city spent. Baker said the shortfall was covered by fund transfers. Also, in December 2007 the city sold back to A. Duie Pyle Inc. a 15.7-acre tract for $694,662. The city had originally purchased the tract behind the Turkey Hill at routes 82 and 340 for the now defunct Iron Hawk Golf Course proposed by former City Manager Paul Janssen.

Baker said the city's net worth, a total of all its buildings, roads, and bridges, was $32.9 million. Overall, she said , city finances are "pretty good."

The audit presented to council was in draft form, but Baker said she didn't expect any changes

The inability of the city's tax base to generate sufficient revenues to operate the city was a major concern outlined in a state-funded 192-page financial analysis of city finances released earlier this year. The report warned that unless the city can grow its tax base through new construction, it faced the possibility of either raising taxes or cutting services.