Despite dark economic clouds looming over the nation and state, audits of Borderland cities show a bright spot on the horizon.

Recent audit reports of Ranier, Littlefork and, most recently, International Falls, all prove the cities to be financially healthy.

“From a financial stand point, the city is in good financial shape,” Donald Zierke, accountant with Miller McDonald firm, told the Falls City Council this week.

That’s good news as we head into an uncertain economic future.

Cities, counties and townships are losing $300 million in state aid over the next two years, part of Gov. Tim Pawlenty’s fix for a state deficit. Pawlenty used an executive authority called unallotment.

Administrator Rod Otterness told the Falls City Council this week that the cuts through unallotment in LGA from December 2008 to December 2010 will total $706,400.

In response to the unallotment of LGA, the League of Minnesota Cities will host an online briefing about the cuts on its Web site.

The group promises answers for local officials on the timing of the cuts, whether their city is subject to levy limits and how to use special levies to make up some of the lost aid. The Web site is a good move by the league to help cities cope with the state budget cuts.

Meanwhile, credit must go to the councils and staff that govern each of our cities for properly planning to provide the services residents have come to expect. Wise and fiscally prudent budgeting by members of these councils have placed our cities in a good position to handle the cuts.

That’s not to say we shouldn’t expect changes in the way these governments operate. These cuts, as noted by Otterness, represent a lot of money to smaller communities and their budgets are already being adjusted.

These cities help to fund other groups and organizations that in turn provide important services to our communities. Those groups will likely see less money as a result of the state cuts.

But without sound groundwork and preparation by council members and their staff, our communities could be facing a much gloomier financial forecast. Kudos to councils and staff.