Rogersville gets clean audit for 2005-06 fiscal year

Jeff Bobo • Mar 16, 2007 at 12:03 PM

ROGERSVILLE - Rogersville continues to be strong financially, according to an audit of the 2005-06 fiscal year presented to the Board of Mayor and Aldermen Tuesday evening.

Auditor R. Brian Price gave the city an unqualified opinion on the city for the last fiscal year, which Price said in other words is "a clean opinion."

In order to avoid a property tax increase in 2005, the BMA had projected to use about $854,000 of its reserve fund to balance the 2005-06 budget. But Price reported to the BMA that it had in fact used only $401,651, leaving the fund balance at slightly over $3.2 million.

City revenue for the last fiscal year totaled $4.77 million compared to city expenditures of $4.55 million.

Price reported several highlights for the past fiscal year including the reissue of the original 1998 Rogersville City School construction bond to take advantage of better market rates. Price said that over 15 years that move will save the city nearly $300,000.

Another highlight was the reduction of the town's overall debt by $333,000 to an overall debt of $9.43 million including the school and water loans.

Other financial notes of interest mentioned by Price included:

•The town purchased a new garbage truck and two new police cruisers for a total of $130,329 by using reserve funds and not incurring additional debt.

•Adding to the city's overall assets Rogersville purchased property on Colonial Road for location of its new street department facilities for $166,845.

•As of the end of the fiscal year last June 30 the city had spent $266,000 on the walking trail project, some of which was paid through grant funding.

•Approximately $635,000 was expended by the city in the last fiscal year for the Stanley Valley water line extension project, the majority of which was paid from reserve funds. As of the end of the fiscal year last June 30, the city had drawn $174,533 from the $2.5 million state revolving loan program fund acquired by the city for the project.

As for departments with separate budgets, the Rogersville Water Commission ended the last fiscal year with a positive change in net assets of $279,370.

Rogersville City School ended the fiscal year with a positive fund balance of $1.69 million, and school revenue exceeded expenditures by $134,289.

Price said that all 13 separate funds of the town ended the fiscal year with positive fund balances. He added that there were no reportable conditions identified as material weaknesses with regard to city financials.

The BMA voted unanimously to approve Price's audit report.

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