By Mark Wineka
mwineka@salisburypost.com
Auditors gave the city of Salisbury a clean bill of health for the 2008 fiscal year, which ended June 30.
Erica Brown, representing Martin Starnes & Associates CPAs of Hickory, said her firm gave the city an unqualified (clean) opinion, which is the best opinion Salisbury could receive.
The audit firm made no findings or raised no questions about costs.
The auditors found no internal control weaknesses, Brown said.
“It looks like we’re pretty healthy,” Mayor Pro Tem Paul Woodson concluded.
Brown gave a capsule review of the city’s financial status, including looks at its fund balance, general fund, sales tax revenues, general fund expenditures and enterprise funds.
Brown noted the city’s fund balance serves as a measure of the financial resources available. It comes from taking the city’s assets and subtracting the liabilities.
There are three classifications of fund balance: reserved, unreserved/designated and unreserved/undesignated.
Funds within the latter two categories are available ó that is they are not obligated to particular projects, although they may be designated for something in the budget.
The city’s total fund balance for the 2008 fiscal year was $8,064,893, which represented an increase of $1,192,164 over 2007.
After the “reserved” fund balance was subtracted from the total, the unreserved/undesignated total was $4,446,572, which represented 13.59 percent of the general fund’s expenditures.
The state recommends that local governments maintain at least an 8 percent fund balance. Salisbury routinely has tried to maintain a 10 percent fund balance.
“We’re very proud of this excellent report,” Mayor Susan Kluttz said.
According to the audit, here are some other 2008 fiscal year notations:
– The city’s general fund had $33,420,370 in expenses, compared to $29,765,060 in 2007.
– The general fund’s top three revenues were property taxes (50 percent), sales tax (22 percent) and charges for city services (16 percent). Other revenues such as intergovernmental grants, investment income and miscellaneous funds accounted for 12 percent.
– The top three expenditures in the general fund were public safety (fire and police), 35 percent; general government, 21 percent; and transportation, 15 percent.
– Sales tax revenues continued to grow in fiscal year 2008. The sales tax accounted for $5,220,704 in fiscal 2008, compared to $4,928,404 in 2007 and $4,755,926 in 2006.
– The water-sewer fund (Salisbury-Rowan Utilities) showed net income of $1,458,055.
– The transit fund, which runs the city buses, had total expenses of $1,025,064, offset by $604,966 in revenues. The city transferred $437,781 into the transit fund from other funds, giving the bus service a net income for the 2008 fiscal year of $25,683.