Times may be hard financially for many cities and counties, but Landrum added more than $300,000 to its total fund balance last year in addition to paying down debt.
Landrum City Council heard Tuesday, Feb. 8 the city’s 2010 audit report from Howard Nichols, CPA, CGFO of Lexington, S.C.
Nichols said as of Sept. 30, 2010, the city’s fund balance, or savings, totaled $1,106,640 compared to the prior year’s fund balance of $804,203.
Of the city’s total fund balance, $831,242 is unreserved, or available for spending.
Nichols also said long-term outstanding debt for the city decreased because the city acquired no new debt last year. The city’s long- term debt as of year-end 2010 was $282,936 compared to year-end 2009 at $324,783.
Last year’s general fund included a total of $1,406,289 in revenues, with expenditures at $1,256,871, according to the audit, or $149,418 in revenues over expenses.
The city’s revenues in all funds totaled $1,801,951, compared to total expenditures of $1,545,883; revenues therefore exceeded expenses by $256,068.
Nichols explained that as of Sept. 30, 2010, the city had a little more than $1,141,000 in total cash, of which 67 percent was represented in the general fund, 9 percent in the fire department fund and 24 percent in the city’s special revenue fund.
Special revenues for Landrum include hospitality tax, victim’s fund and drug enforcement.
In the special revenue fund, 75 percent of the cash belongs to the city’s hospitality tax, collected from businesses from tourism.
In 2010, Landrum brought in $239,906 in hospitality tax and spent $20,668 for an ending fund balance for the tax of $219,238. Hospitality tax dollars are restricted in that they can be spent only on tourism-related activities.
General fund revenues for the city last year included $537,368 in business license fees, $532,733 in property tax, $46,722 in fines and fees, $142,697 in public works, $69,511 from intergovernmental revenue and $77,258 in other miscellaneous revenue.
The fire department fund received $112,640 from property taxes and $21,598 from other miscellaneous revenue. The special revenue fund included $251,035 from business licenses and $10,389 from intergovernmental revenue.
The fire department fund was the only fund that ended with a deficit. Nichols explained that debt service acquired for a new fire truck was the reason for the deficit in 2010. The fire department fund ended with revenues less than expenditures by $87,170.
The fire department brought in a total of $134,238 and spent $221,408, according to the audit report. Expenditures for the fire department included $143,816 for general and administrative categories, $25,000 in capital outlay and $52,592 in debt service including principal and interest payments.
Nichols also told council how much per day it costs to run the city. He said the city has a daily expense of $4,530 which means Landrum could run for 251 days on its current cash if for some reason all revenues ceased.
Landrum’s fiscal year began on Oct. 1, 2010.