SALISBURY — During their Dec. 5 meeting, the Salisbury City Council was given a presentation regarding its annual financial report that outlined the 2023 fiscal year. The audit was performed by Martin Starnes & Associates out of Hickory, with auditor Elsa Swenson leading the presentation to council alongside Finance Director Wade Furches.

“Everything that council wants to do, your vision, it starts with finances,” City Manager Jim Greene said. 

Revenues from the general fund in 2023 were $49.9 million, which was a 6 percent increase from 2022. Expenditures from the general fund were $43.4 million, a 12 percent increase from last year. Compared to 2022, there was an $8.1 million increase in available fund balance. Swenson said that the rise in available fund balance came from $5.6 million of the American Rescue Plan Act funds being transferred to the general fund and the change in fire and police department salaries. 

Property taxes came out to $24.2 million, a 4 percent increase from 2022. Unrestricted intergovernmental revenues, or sales tax revenues, was $15.7 million, up 7 percent from last year and Swenson says these figures continue to get higher. Salisbury spent 12 percent more on public safety this year totaling $19.9 million. Public safety is the city’s “largest expense” and the additional $2 million comes from a pay study that was conducted and the purchase of a firetruck.

Unrestricted net position for water and sewer was $48.9 million and the change in net position was $7.1 million. While the broadband unrestricted net position was negative, Swenson specified the overall net position was positive for the first time ever at $1.4 million. 

The quick ratio for water and sewer, which is calculated by taking current assets, subtracting inventory, and then dividing by current liabilities, was 7.31. The local government commission would only have a problem with this figure if it was less than one. The operating income performance for water and sewer totaled $7.7 million, with the LGC only having issues if the number was negative. 

Swenson mentioned that there was a “performance indicator of concern” around the water and sewer condition of assets stating, “The remaining useful life of assets is .5 for water and sewer and this is due to the need for continued investment in assets and infrastructure.” The city must now send the LGC a letter within 60 days of the presentation. 

In terms of long-term planning, Salisbury has started a 10-year capital investment program “to prepare for future capital needs” with an emphasis on the general fund, water and sewer, and stormwater. Current projects that fall under this umbrella include improvements to the Grant Creek Wastewater Treatment Plant and replacing Fire Station 3.

Swenson and Furches both agreed that the city is in good financial shape. Some of the factors that propelled Salisbury to this stage is by investing all funds “not needed on a daily basis” to maximize interest earnings, allocating resources only to areas that meet community needs, and tracking those same areas to make sure they are implemented “within authorized levels.”

“We’re going in the right direction,” Furches said.