Auditor R. Brian Price gave the town an unqualified opinion, which Price explained is basically a "clean audit."
"You had a good year," Price told the board.
Among the highlights for 2005-06, Price reported that the revenue surplus helped increase Mount Carmel's general fund to $1.02 million.
As of the end of the last fiscal year, the town's net assets were $8.33 million, with overall net assets at $12.11 million and liabilities at $3.78 million.
With regards to debt at the end of the last fiscal year, Mount Carmel still had $124,654 in outstanding capital outlay notes and still owes just shy of $2.9 million on its sewer plant.
This past year the sewer fund increased its overall net assets by $114,222.
"The sewer fund has vastly improved its financial performance over the past several years," Price said. "If you'll recall, for a number of years the town's general fund had to subsidize operations of the sewer fund in order for it to operate. For the past several years, I am pleased to report that the sewer fund has been able to operate on its own, and this has strengthened the overall financial condition of the town in total."
The only negative finding presented by Price was that in some instances purchase orders were not always completed in accordance with policies in place.
The BMA approved the audit report unanimously.
In other business at last week's meeting the BMA:
•Approved the second reading of an ordinance repealing the town's privilege business tax. Mayor Gary Lawson said elimination of the tax would cost the town about $15,000 annually, but he noted that the tax might have discouraged new businesses from locating in town.
•Approved the expenditure of $3,000 to $4,000 which would be the town's share of a $15,000 Tennessee Department of Transportation study to determine the need for traffic lights at the intersections of Hammond Avenue and Main Street; and Hammond Avenue and 11-W.
•Approved the issuance of capital outlay notes not to exceed $58,000 for the purchase of two new police cruisers.
•Approved Fire Chief Chris Jones' recommendation to accept new fire department members Doug Lipe, Donald Sherfey, Marlene Estep, Timothy Coup, Jason Keen, Spencer Southerland, Nathan Watkins and Christopher Funk.