Town ends year with 57 percent fund balance

The Town of Columbus added another almost $90,000 to its reserves last year and had an overall positive year financially, according to the 2010-2011 audit report.

Columbus Town Council met Thursday, Nov. 17 and received its audit report from Gabler Molis & Company of Asheville.

The town continues to contribute to its reserves, or fund balance, ending last year with 57 percent of the general fund in reserves.

The state requires governments keep a minimum of eight percent of their general funds in reserves. Most small towns keep at least 20 percent of their general funds in reserves.

Columbus built its fund balance to $523,252 in available funds, or fund balance that is not reserved. The town’s total fund balance is $577,933 after it added $89,736 last year to the total.

The previous year, fiscal year 2009-2010, Columbus had an unassigned fund balance of 52.4 percent of its general fund.

Columbus also ended the year in the positive overall, with revenues exceeding expenditures in both the general fund and the water/sewer fund.

In fiscal year 2010-2011, which ended June 30, 2011, the town’s general fund ended with revenues exceeding expenditures by $70,656, according to the audit report.

Although the town’s revenues were less than budgeted by $72,899, actual expenses were less than budget by $143,555 for a year-end positive. Major reasons for ending the year with revenues over expenditures were a reduction in staff in the planning department, the closing of the town’s recycling center and decreases in expenses for the annual Fourth of July celebration.

The proprietary fund, or water and sewer fund, also ended the year with revenues exceeding expenses. The water and sewer fund ended the year with $1,070,506 in revenues and spent $936,152, for an operating income of $134,354, according to the audit.

Other financial highlights of the year include a net increase of $19,822 in the town’s total debt for the general fund, and a decrease of $169,038 in the total debt in the water and sewer fund.

Financial activities for last year included the purchase of land adjacent to Veteran’s Park for $96,979. Funding for the acquisition came from grants from the Polk County Community Foundation and the North Carolina Parks and Recreation Trust Fund as well as donations. The town also sold four police vehicles for a $19,080 gain.

In the water and sewer fund, the town implemented a five percent increase in both water and sewer rates during fiscal year 2010-2011, which increased service charges by $35,000. The town also received a couple grants during the year for water/sewer activities, including a $50,000 grant from the North Carolina Clean Water Management Trust Fund to evaluate storm water quality and a $499,900 grant from the N.C. Rural Center for design and planning of the joint water line between Columbus, Saluda and Tryon.